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  • FIRST POST
    • Kenjiin
    • By Kenjiin 12th Jan 18, 3:05 PM
    • 6Posts
    • 1Thanks
    Kenjiin
    Woops.. Did I make a mistake?
    • #1
    • 12th Jan 18, 3:05 PM
    Woops.. Did I make a mistake? 12th Jan 18 at 3:05 PM
    Hi!

    I'll try and cut to the chase. In 2011 I defaulted on a credit card with Natwest for close to £4000. I then managed to rack up a further £3000 on a Capital One credit card.

    For a long time I essentially ignored it, lived paycheck to paycheck and made minimum payments that were essentially interest only.

    In the last 18 months I've turned things around. Paid off the Capital one card in full, have £4000 in savings.

    This leaves the very old Natwest account. I have £2400 left on this, but because I defaulted and went through a debt company in 2011 all interest was frozen.

    I have been paying £30 a month since, for a while only about £12 of that was going towards the debt, now the entire £30 does. It doesn't appear of any benefit to pay that off all in one go. Since its fallen off my credit report I'm now rated excellent. There's 0% interest being paid and nobody has ever chased me up, It's slowly chipping away (and will do for the next 8 years) without me noticing.

    BUT today I switched my Barclays current account to Natwest current account for the £125. In my haste I completely forgot this is where I initially owed the remaining debt I have, and the account I'm about to transfer has over £4000 in it.

    Now, I've spoken to Wescot (this is who I pay the £30 a month to) and they say that Cabot Financial own the debt since they bought it, and I essentially owe the money to them, not Natwest.

    Spoken to Natwest who found the old account, but again stated that it was being managed by Cabot.

    Essentially I'm telling Wescot that I can only afford £30 and pretend to be the unemployed/unable to manage finances sort of person I used to be to continue paying that amount. They don't care as long as they are receiving regular payments.

    I'm just worried my savings are about to be transferred to a new Natwest account, and because It was them I defaulted with I don't want to be in a situation where they then see the money in my savings account and be like "Oh, we'll take half of that!".

    Or will this not be the case because Cabot now own it, I now owe them the money and so Natwest don't care, they were paid by Cabot when the purchased the debt?

    I hope this makes sense!

    Thanks for any replies, I'm a little panicked about it. Of course I would get rid of that £2500 if it had any benefit to do it sooner rather than later, but the current way I'm operating enables me to be a close to debt free as possible, while still working towards my future and looking at buying a house and investing in S&S ISA, both of which 18 months ago looked like a ridiculous dream.

    Any tips are appreciated! Should I try and cancel the switch on Monday asap, or stay with Natwest and get that £125 cause they don't care about that money anymore
Page 1
    • sourcrates
    • By sourcrates 12th Jan 18, 3:22 PM
    • 13,034 Posts
    • 12,341 Thanks
    sourcrates
    • #2
    • 12th Jan 18, 3:22 PM
    • #2
    • 12th Jan 18, 3:22 PM
    Cabot bought your debt for pennies most likely.

    Natwest have washed their hands of it.......you should, i emphercise should.....be OK now.

    But you can never say never, it is a risk, if it were me, i would not leave my money there.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 12th Jan 18, 4:31 PM
    • 11,773 Posts
    • 8,867 Thanks
    fatbelly
    • #3
    • 12th Jan 18, 4:31 PM
    • #3
    • 12th Jan 18, 4:31 PM
    I agree I think you'll be safe. But why are you putting 4k into a Nat West account?

    Either keep it where it is or find somewhere better! Could do worse than premium bonds

    https://blog.moneysavingexpert.com/2017/11/20/premium-bond-rate-boosted-1-15-1-4-pile/?_ga=2.68170897.1092383748.1513015884-370800224.1507305729

    It also might be worth exploring with Cabot what they would accept to settle the debt. I've seen them accept 30% to 60%
    Last edited by fatbelly; 12-01-2018 at 10:32 PM.
    • Kenjiin
    • By Kenjiin 12th Jan 18, 5:14 PM
    • 6 Posts
    • 1 Thanks
    Kenjiin
    • #4
    • 12th Jan 18, 5:14 PM
    • #4
    • 12th Jan 18, 5:14 PM
    Thanks for your advice! I think you're probably right, it should be ok.

    I've never thought about discussing settling the bet with them, To be honest I didn't know it was an option. When it comes to things like that though, I worry by letting know I have money available... what would stop them from just declining any agreement and asking me to increase my monthly amount?

    And I'm literally just moving the money because the Barclays account will be closed. Moving mainly for the free £125 and that now that I've moved from Apple to Android, I've realized Barclays don't support Android Pay, which is a real pain for me.

    But yeah, I really need to figure out where to put this money. I don't want to lock it away in and ISA that has a decent rate, but am looking into opening an S&S ISA to put further savings in. Or a lifetime ISA. Ugh, I don't know, that's a discussion for another forum I guess!
    • fatbelly
    • By fatbelly 12th Jan 18, 6:31 PM
    • 11,773 Posts
    • 8,867 Thanks
    fatbelly
    • #5
    • 12th Jan 18, 6:31 PM
    • #5
    • 12th Jan 18, 6:31 PM
    Try offering them 30%

    https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx
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