‘My debt is paid in full, but I can’t make a payment’: I faced an unexpected issue after my personal loan mysteriously paid off my debt. How can I avoid late fees and handle this situation?

Hi Money Minder,

So, here’s the deal – last Spring I bought a house and ended up with a bunch of credit card debt. Moving costs, home repairs, buying a lawn mower, you name it – it all added up. I was stuck in a rut because of those pesky interest rates, and my debt wasn’t budging.

Finally, after a few months, I decided to go for a personal loan with a lower interest rate, which really made a difference. But then, out of the blue, I saw a huge chunk of money disappear from my checking account last week. Turns out, the loan agency had charged me a massive processing fee that I couldn’t afford.

After some frantic calls to both the loan agency and my bank, I managed to straighten things out. There was a glitch in the system that led to the wrong amount being charged. The bank quickly blocked the pending payment, which was a relief since I didn’t have the cash to cover it anyways.

A week passes, and I receive an email saying my debt has been fully paid off. My online account shows a zero balance, but when I try to make a minimum payment, it doesn’t go through. I can’t even get a real person on the phone when I call for help.

I’ve kept records of my failed payment attempts because I’m worried this might drag on for months, leading to late fees, more interest, or worse – having the loan sent to collections. Do you have any tips or advice on how to handle this situation? I could really use some expert advice on what steps to take or precautions to make.

Thanks for any help you can provide!

Farewell from Troubled Homeowner

Response from THE MONEY MINDER:

Hello There,

I understand the frustration and confusion you must be feeling after the unexpected issues with your loan payment. It’s definitely alarming to see such a large withdrawal from your account, especially when you weren’t prepared for it.

First of all, it’s great to hear that the situation was quickly rectified by both the loan agency and your bank. It’s a relief that the debt is now showing as paid in full on your online portal. However, I completely understand your concern about potential future issues due to the system error and the inability to make a payment on your account.

To address this, I would recommend documenting all your attempts to make the payment and the declined transactions. Keeping a record of these interactions will be beneficial in case any late fees or additional interest charges crop up in the future. You might also want to consider reaching out to the loan agency via email or writing a formal letter explaining the situation and seeking clarification on how to proceed with future payments.

In addition, keeping a close eye on your credit report and monitoring your account statements regularly can help you catch any discrepancies early on. Setting up alerts for any activity on your accounts can also ensure you stay on top of any developments.

While this hiccup is undoubtedly frustrating, taking proactive steps to address any potential issues going forward can help prevent any negative consequences down the line. Remember, staying vigilant and maintaining open communication with the loan agency can go a long way in resolving any lingering concerns.

Best of luck, and remember that THE MONEY MINDER is always here to help!

Best regards,
[Your Name]
THE MONEY MINDER