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  • FIRST POST
    • lailaihei
    • By lailaihei 9th Oct 16, 9:34 PM
    • 7Posts
    • 0Thanks
    lailaihei
    First Trust/AIB Overdraft Problem
    • #1
    • 9th Oct 16, 9:34 PM
    First Trust/AIB Overdraft Problem 9th Oct 16 at 9:34 PM
    I had an overdraft of £200 with First Trust/AIB, then used the Halifax account switch tool to move my account to them. I was under the impression that I'd still be able to pay off my overdraft from my other First Trust account, but the bank then asked me to pay it in full.

    I phoned them, and they stated that the overdraft could be turned into a loan to be paid off.

    A few days later, they first sent out three letters on the same day, one demanding the money, the next threatening all my accounts would be closed, and the third threatening me with court action.

    Around this time, I had to leave my job due to health problems, and I currently have no income. (I'm getting help with rent and bills from my parent).

    I phoned the bank to tell them I had no income, and wanted to delay paying back the money. They said they would get in contact with me again to see what we could arrange.

    Now I have received another letter saying that I have to pay the entire amount within 14 days, plus interest, or the matter will be passed onto their "Credit Support Unit who will take whatever action they consider necessary to recover the money".

    There was also a note directing me to debt advice agencies, and that I would also be responsible for any legal costs.

    I'm really worried about this. I have no money at the minute, and I'm basically living on the breadline. I've told them this, but they don't seem to care. Is there anything I can do? I hope to be starting a new job soon, but I won't get my first wages until the end of the month. At which point, I'd be able to pay off the full amount.

    Any advice is greatly appreciated. I'm at my wits end worrying about this, as I keep thinking they're going to send people to my house to take possessions to cover the costs.
Page 1
  • National Debtline
    • #2
    • 10th Oct 16, 1:17 PM
    • #2
    • 10th Oct 16, 1:17 PM
    Hi lailaihei,


    First of all, no one can come inside your home and take your goods. This creditor would need a county court judgment (CCJ) to even have the option of a bailiff, and you are nowhere near that stage, so I would advise you to start by forgetting this. It isn't something you need to worry about.


    If you are struggling to pay what they are asking for at the moment, write back to them and tell them this is the case. Include a SOA to show you have no available money and ask them to put it on hold. If you are comfortable including a letter from a medical professional about your health then you can include that too. Although the creditor doesn't have to hold the account, they may be more inclined to do so, if they know more about the situation.


    From now on, keep it all in writing or emails, don't promise to clear in full unless you have done detailed SOA and are certain that would be affordable. When you are in a better situation you can make monthly payments, if you can't pay in full.


    Laura
    @natdebtline
    Last edited by National Debtline; 10-10-2016 at 5:47 PM. Reason: typo
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • EssexHebridean
    • By EssexHebridean 10th Oct 16, 2:49 PM
    • 6,317 Posts
    • 35,042 Thanks
    EssexHebridean
    • #3
    • 10th Oct 16, 2:49 PM
    • #3
    • 10th Oct 16, 2:49 PM
    Don't panic - that's great advice above from Laura.

    It's worth others noting that the switching services for bank accounts do generally involve closure of the original account, so if your new account provider has not agreed to take over the overdraft, the original one may well demand that money back immediately. They are generally speaking within their rights to do this as I understand it - as harsh as that may seem. In this instance though it would have been helpful if someone had pointed out to you that this would be the case!
    MORTGAGE FREE 30/09/2016
    • lailaihei
    • By lailaihei 10th Oct 16, 3:08 PM
    • 7 Posts
    • 0 Thanks
    lailaihei
    • #4
    • 10th Oct 16, 3:08 PM
    • #4
    • 10th Oct 16, 3:08 PM
    I don't mind them demanding the money in normal circumstances, but the fact I've told them twice about my financial situation, and they've still sent out threatening letters. Not the first person to have complaints about this bank. Heard reports of them ruining people's credit ratings and all.
    • EssexHebridean
    • By EssexHebridean 10th Oct 16, 3:28 PM
    • 6,317 Posts
    • 35,042 Thanks
    EssexHebridean
    • #5
    • 10th Oct 16, 3:28 PM
    • #5
    • 10th Oct 16, 3:28 PM
    It's the feeling that they're ignoring you, isn't it. Realistically though they've imposed this deadline, after which time they're going to pass it on to their "Credit support unit" - once they do those people are also going to have to write to you, and wait for you to write back...all of this takes time. Ignore what you've heard other people say about them too - there are scare stories out there about every financial institution, pretty much - I could tel you some hair-curling stories about Nat West & Virgin Money, trust me!

    As Laura says, keeping everything in writing. Personally I'd avoid emails as the last thing you want is to start dreading looking at your inbox - bad enough that sinking feeling when you see the envelope on the doormat! Using snail-mail also has the added advantage of slowing things down, of course, which in your position might be a helpful advantage?
    MORTGAGE FREE 30/09/2016
    • sourcrates
    • By sourcrates 10th Oct 16, 3:47 PM
    • 8,330 Posts
    • 8,163 Thanks
    sourcrates
    • #6
    • 10th Oct 16, 3:47 PM
    • #6
    • 10th Oct 16, 3:47 PM
    I don't mind them demanding the money in normal circumstances, but the fact I've told them twice about my financial situation, and they've still sent out threatening letters. Not the first person to have complaints about this bank. Heard reports of them ruining people's credit ratings and all.
    Originally posted by lailaihei
    What you have to understand is that the majority of these "threatograms" are computer generated, computer spits them out like theres no tommorow.

    Just ignore them, if you can settle your debt in a month or two, then just do that.

    Theses letters are specifically worded to get you to contact them, the debt collection process can take years, nothing will happen if you don't pay by there irrelivant deadline.

    Take it from one who knows, and don't panic.
    Last edited by sourcrates; 10-10-2016 at 3:50 PM.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • lailaihei
    • By lailaihei 10th Oct 16, 3:59 PM
    • 7 Posts
    • 0 Thanks
    lailaihei
    • #7
    • 10th Oct 16, 3:59 PM
    • #7
    • 10th Oct 16, 3:59 PM
    You'd think they'd be less demanding, seeing as a longer time to pay means more money they get to rake in with fees and interest.
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