Urgent advice needed - Natwest loan

Tomanydebts25 · 25 June 2016 at 6:41PM

Hi

I'm currently in the process of dealing with my debts and June was the first month I missed payments.

However yesterday I recieved a letter from Natwest saying due to the missed payment they were now closing my "Loan account" following there previous letter (I have recieved no other correspondence from them until this). They are therefore demanding full payment plus interest plus charges totalling £9,600. Paid by the 8th July. Obviously I cannot make this payment and I have not yet been able to go into the bank.

They are threatening me legal and court action if this full payment isn't made by the due date.

Any advice is greatly appreciated.
Many thanks.

sourcrates · 25 June 2016 at 7:00PM

Hi,

Closing your account after only one missed payments seems a tad over the top to me, anyway, don't panic, you will notice the letter will say "we could take legal action" or "we may take legal action" blah blah blah, its a standard computer generated "pay up or else" letter, don't worry about it.

You will be able to negotiate a way out of this, if they have actually closed the account, then you may have to deal with NatWest's "in-house" collection dept., which is where your account will probably be now.

Original creditors very rarely take legal action, the debts just get passed around various debt collection agencies, each hoping to get money out of you.

The wording of these letters is quite ambiguous, and are designed to get you to contact them ASAP.

Smodlet · 25 June 2016 at 7:22PM

Sourcrates knows way more about these things than I, but one missed payment seems very little to provoke this reaction, unless there is more to this story?

In fairness to them (a bank! I know! But it is the NatWest, not their evil umbrella company) if you do not talk to them, all they can do is treat you as the lowest common denominator among their borrowers; the ones who just do not bother and think rules do not apply to them, the ones towards whom these form letters are directed. Talk to them!

Even with banks, it is amazing what charm can achieve and, if they know it was merely an oversight and you fully intend to pay up to date as soon as you possibly can, is there a chance you can get them to reinstate the original terms of your loan?

Make up an excuse for the missed payment, if you think it would help. Tell them your aunt, gran'fer, guinea pig died and you were distracted/distraught but are very sorry and wish to rectify matters with utmost alacrity. If the problem is more serious and you can no longer meet the payments, negotiate! I am pretty sure banks/all financial institutions have procedures they have to be seen to go through before they throw you to the wolves (debt collection agencies)

Let us know how you get on?

Tomanydebts25 · 25 June 2016 at 11:11PM

@sc -

Yes first missed payment (2nd June) for over a year on this loan. Very surprised to recieve a letter of this nature so soon. Maybe why I initially panicked a little.

@smod - nothing more to this story. Maybe apart from I closed an unused current account with Natwest about 6 months ago.

I sent all creditors last week. Natwest clearly not recieved there letter yet.

Unfortunately due to being recently diagnosed with PTSD my income has dropped and this is my first month of missing payments.

Smodlet · 25 June 2016 at 11:40PM

So (I am actually beginning a sentence with "so") try to enjoy the rest of the week end and speak to them on Monday. It is debt. It can be dealt with, there is plenty of help out there, and in here, if you need it.

Please, let us know how you get on.

Tomanydebts25 · 27 June 2016 at 5:12PM

So I rang Natwest on the number from the letter I recieved. Absolutely pointless. After being passed around numerous people and nearly an hour later I was told they couldn't tell me who had made the decision to close my loan account (I was now speaking to the closure team). They were adamant it wasn't them and they could not find anyone who had made the decision.

So what do I do now? Simply said there was nothing I could do until the formal period of 28 days had passed and the collection agency would be in touch. I have sent them a letter 2 weeks ago now stating I was under financial difficulty and was seeking advice. Stepchange have also contacted them. But Natwest are being entirely unhelpful.

fatbelly · 27 June 2016 at 5:42PM

They do sound like pi11ocks to be fair.

But what are you trying to do here? You say you are 'in the process of dealing with my debts' and 'Stepchange have also contacted them'

Are you setting up a Stepchange debt management plan with monthly payments less than the contractual amounts?

If so, just let Stepchange pass on your payments to them. Which department (or DCA) handles your account is their problem.

Smodlet · 30 June 2016 at 6:51AM

"Yes first missed payment (2nd June) for over a year on this loan. Very surprised to recieve a letter of this nature so soon. Maybe why I initially panicked a little."

Are we to construe from this that this is not the first missed payment ever, just in over a year? If so, I suppose that could influence their decision somewhat.

Perhaps they have received the letter, either yours, Stepchange's or both, and that is why they have closed the loan account. I am not aware of how DMP's work, thankfully but someone here will know.

Urgent advice needed - Natwest loan

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