bank loan.

[veen]

my friend had a business loan from a well known bank 3 yrs ago for �3000,she was abit concerned because she had only paid off �1000 3 yrs down the line so she asked for some paperwork about her loan.she didnt recieve any so she was advised by another bank to close her direct debit until she was contacted.she only missed 1 payment of her loan,then reinstated her dd.she has since had a debt collectors letter saying the full amount has to be paid in 3 mnths.the bank will not talk to her about this.she doesnt know what to do.anyone help

[Loosehead]

Not much she can do, the small print will say that the bank can demand full payment if any condition is breached. If fact it probably says they can demand full payment without reason why should they deem it necessary.Perhaps she can get another loan from another lender to repay what is outstanding.

Why did she ask for paperwork surely she must have the original loan agreement with terms amounts etc? That would tell her all she needs to know.

Sounds to me like it was quite a high rate and they also managed to rip her off for loan protection insurance too.