Loan Settlement Letter

K

koos10

Guest
Hi All

I am having issues with a financial institution(call it institution A) regarding a personal loan that I took up with them.
I had this loan and have been paying it for almost a year.
I then decided to take up a consolidation loan with another financial institution.

I proceeded to request a settlement letter from institution A which they provided. I them proceeded to pay the exact amount on the settlement letter they in turn stopped the debit order. This happened in June.

End of July and now in August I'm being told that this loan is not settled because they gave me the incorrect amount on the letter.

My question is, is a settlement letter legally binding?

Maybe a lawyer out there can supply me with an answer?
 

ambroseg1

Honorary Master
Joined
Jul 15, 2008
Messages
11,027
I would expect even the worst bank in SA to get this right.

Sounds more like a micro lender.
I beg to differ sir. As someone who currently has a homeloan, and a new vehicle loan with them, they are truly the masters of messing up the basics.
 

TheFriendlyGhost

Expert Member
Joined
Sep 28, 2015
Messages
1,135
The settlement letter is binding (unfortunately for them). Tell them that your account is settled according to a legally binding document that they had sent to you. If they threaten, tell them to discuss it first with their own legal department, before contacting you again
 

SauRoNZA

Honorary Master
Joined
Jul 6, 2010
Messages
35,763
I beg to differ sir. As someone who currently has a homeloan, and a new vehicle loan with them, they are truly the masters of messing up the basics.
So after they cocked up the home loan....why on earth would you volunteer to do vehicle finance too?
 

ambroseg1

Honorary Master
Joined
Jul 15, 2008
Messages
11,027
So after they cocked up the home loan....why on earth would you volunteer to do vehicle finance too?
They cocked up the home loan AFTER I got the vehicle finance. Then for good measure, cocked up the vehicle finance too.
 

Ho3n3r

Honorary Master
Joined
Apr 5, 2012
Messages
17,067
Hi All

I am having issues with a financial institution(call it institution A) regarding a personal loan that I took up with them.
I had this loan and have been paying it for almost a year.
I then decided to take up a consolidation loan with another financial institution.

I proceeded to request a settlement letter from institution A which they provided. I them proceeded to pay the exact amount on the settlement letter they in turn stopped the debit order. This happened in June.

End of July and now in August I'm being told that this loan is not settled because they gave me the incorrect amount on the letter.

My question is, is a settlement letter legally binding?

Maybe a lawyer out there can supply me with an answer?
I had this with Absa. Gave them grief on social media. They contacted me and someone contacted me. Eventually, after sending them proof, they closed it and I was free.
 
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