I would let the matter lie in that an argument could be made that you are somewhat responsible for not making sure that your two 401 k accounts were merged into one account years ago. You need to realize that the trustee under the 401 k account cannot make sure that all is in perfect order in handling such.You could make a case for some damages caused by the delay as to the trustee, but some fault could be placed on you for not making sure that the accounts were merged together well before you needed the loan.The trustee's job is to make sure that the money is properly held and not taken for a wrongful purpose by a third party while keeping the owner of the account informed on at least a quarterly basis. For further questions, I suggest that you consult with an attorney experienced in investment law.