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Please help - 'banking relationship broken down'
v8monkeyboy
Posts: 400 Forumite
Hi,
I posted the other day on behalf of some of my friends, and got a lot of very useful answers. So, now it's my turn.
Basically, my husband and I are in the process of re-writing our debts, and have come to agreements with most of the creditors. However, we currently hold a joint account with NatWest, and I also have a loan and a sole account with them.
I have sent the same letter through to NatWest as I did to the other creditors, but am still awaiting an answer. This morning in the post, are 2 threats of default notices for my loan and acooun overdraft, and also a letter to both of use concerning the joint account, saying that the banking relationship has broken down, and that they are closing the joint account on the 24th Oct.
The joint account has never been in any trouble - money goes in, money goes out, and within its limit. The bank are now requesting cards, cheque books back etc. for this account. The problem is that we don't have any other bank accounts to use as a daily account, and I'm now worried that we won't be able to use the joint account until we get another account sorted.
As we are in the middle of sorting out our creditors, our credit rating isn't brilliant, so my question is what do we do? Will any other bank touch us (as we could do with having the same overdraft available), or will we have to stuff our money under the matress and go cash only?
Sorry for the long post, but I'm in a bit of a panic about this!
T
I posted the other day on behalf of some of my friends, and got a lot of very useful answers. So, now it's my turn.
Basically, my husband and I are in the process of re-writing our debts, and have come to agreements with most of the creditors. However, we currently hold a joint account with NatWest, and I also have a loan and a sole account with them.
I have sent the same letter through to NatWest as I did to the other creditors, but am still awaiting an answer. This morning in the post, are 2 threats of default notices for my loan and acooun overdraft, and also a letter to both of use concerning the joint account, saying that the banking relationship has broken down, and that they are closing the joint account on the 24th Oct.
The joint account has never been in any trouble - money goes in, money goes out, and within its limit. The bank are now requesting cards, cheque books back etc. for this account. The problem is that we don't have any other bank accounts to use as a daily account, and I'm now worried that we won't be able to use the joint account until we get another account sorted.
As we are in the middle of sorting out our creditors, our credit rating isn't brilliant, so my question is what do we do? Will any other bank touch us (as we could do with having the same overdraft available), or will we have to stuff our money under the matress and go cash only?
Sorry for the long post, but I'm in a bit of a panic about this!
T
0
Comments
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It is highly unlikely any other bank would offer you credit facilities based on what you have said. I suggest you pop over to the debt free wannabee board and post a statement of affairs there to see if they can help.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Maybe Nat West haven't received your letter - if this is the case then it explains their stroppy letter. They've probably just assumed that you can't be bothered to do anything about the stuation.
I wouldn't bother sending another letter; just make an appointment to speak to your manager as soon as possible.
PS: Good luck0 -
essential you open another bank asap and ensure that all your income goes in there.. otherwise obviously they will take any income that goes into that account to pay the debts (called offsetting and is a universal banking practice.
you will be able to open a 'basic' account with most banks ... no OD, no cheque book and only possibly a cash card but you can set up DD and standiong orders... obviously the bank must be one that you have no debts with in any way.
abd of course go over to the debt free wannabee board .. lots of advice and help there.0 -
Hi
I have absolutely NO credit (no bad credit and no good credit) as I have just started on my own!
I have been in the same boat as you with banks.
However all is not lost, I happen to know that ALL the major 4 banks in the UK and many of the not-so-major banks have a basic account facility that will offer you a basic account with no overdraft facility and usually no cheque book although some of them will offer you a debit card (solo or visa electron usually) or failing that, they will offer you a cash card (a regular ATM card). They will all let you set up direct-debits and standing orders and also let you use them for internet and telephone banking.
These accounts were created as a government request for people who can't open regular accounts because of bad credit, specifically those who are claiming benefits as these are now paid into a bank rather than a cheque.
They will also let you open a joint basic account.
Hope this helps
Matt0
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