embarrassingly obvious question?!

freshstart_4

Hi

I can't believe I'm asking this, as it has to be the most basic question, but I have looked high and low and cannot find online or in leaflets/packs the quote I'm looking for, that MUST be there somewhere, but darned if I can find it. It's simply to ask how many weeks notice I must give NatWest re closure of account. I'm presuming it's four weeks, but want to be absolutely sure.

I don't want to contact NatWest themselves as yet. After taking advice from the CCCS, am hoping for a positive response regarding application have just made to another bank; then will pay off NatWest overdraft very gradually with the money that at the moment is being taken in interest. Am on Incapacity Benefit, surgeries due, and had enough of struggling to try to make headway with this, plus interest rates rise even more in June 2006, and I can't pay off £900 via a 6-month 0% card.

If anyone would kindly confirm if NatWest do require four weeks notice in writing, or if it's different to that, I'd really appreciate it.

Thanks, Cat

Savvy_Sue

Had no idea banks required ANY notice to close an account ... if there was a credit balance in it it might take that long for them to send you a cheque, but I have always cleaned the account out before closure!

Mark7799

Cat,

To the best of my knowledge there's no notice period at all required. Make sure you've got new arrangements in place for any direct debits and standing orders and given your new account details to any organisation who pays you directly to the Bank.

Expect NatWest to ask for any books and cards to be returned and they may make you wait a few days to ensure any outstanding payments (Switch transactions etc) have been processed.

It's probably better if you can get your new account up and running first - then pay off NatWest and close the existing account.

Mark

freshstart_4

Savvy_Sue wrote:

Had no idea banks required ANY notice to close an account ... if there was a credit balance in it it might take that long for them to send you a cheque, but I have always cleaned the account out before closure!

I'd clean it out too, if there was something to clean out! :-)

freshstart_4

Mark7799 wrote:

Cat,

To the best of my knowledge there's no notice period at all required. Make sure you've got new arrangements in place for any direct debits and standing orders and given your new account details to any organisation who pays you directly to the Bank.

Expect NatWest to ask for any books and cards to be returned and they may make you wait a few days to ensure any outstanding payments (Switch transactions etc) have been processed.

It's probably better if you can get your new account up and running first - then pay off NatWest and close the existing account.

Mark

Hi Mark

New bank would sort out d.d.'s and s.o.'s; I'd need to tell the BA the new bank details and date. Unfortunately it's impossible to pay off £900 overdraft before closing the account, because of being on IB. Need to use the money that's going out on interest payments with NatWest to instead pay off overdraft very gradually from new bank to NatWest.

Starting to think it might be best to bite the bullet and in writing formally tell NatWest as soon as new bank account eligibility is confirmed. Need to be sure there's no risk of any IB payments being swallowed up by NatWest instead of going on necessary groceries and bills via new account. Only way I can see of ensuring NatWest don't delay things is for me to choose a transfer date that has no bill payments due for a few days either side, and to spend nothing then too. As long as I do that, they can't legally hold anything up?

Regards, Cat

inmypocketnottheirs

Unless I have misunderstood, you want to close the account then pay off your overdraft.

If this is the case, I think it very unlikely that Nat West will close the account. The only way an account can be closed is when the balance is zero. So you will have to clear the overdraft in order to close the account.

Please be careful about defaulting on the agreement with Nat West. If you stop using the account, and default on the agreement they will issue a default notice on your credit file. You will then get debt collectors harassing you, have fees added to your account etc etc.

Please let me know if I have misunderstood. Good luck!

freshstart_4

inmypocketnottheirs wrote:

Unless I have misunderstood, you want to close the account then pay off your overdraft.

If this is the case, I think it very unlikely that Nat West will close the account. The only way an account can be closed is when the balance is zero. So you will have to clear the overdraft in order to close the account.

Please be careful about defaulting on the agreement with Nat West. If you stop using the account, and default on the agreement they will issue a default notice on your credit file. You will then get debt collectors harassing you, have fees added to your account etc etc.

Please let me know if I have misunderstood. Good luck!

Hi

Yes, you've understood right. I took advice from the CCCS, who explained that by opening an account with another bank, and having my income paid into that instead (and all s.o.'s and d.d.'s transferred) that, yes, NatWest will initiate court proceedings and I'll get a bad debt rating, but that it will mean I have control over money, instead of interest being taken every month. My priorities are to stop interest being taken, as this is going to add up to at least £170 a year, and rises in June ... on Incapacity Benefit it just isn't possible to lose that kind of money, so, compared to that, I'm thinking a bad debt rating doesn't figure too highly, unless it's going to affect me in ways I don't know about? I want to use that £170 - £250/300 a year to pay off the overdraft instead.

I wouldn't ever miss a payment once I agree an amount with the court ... NatWest have never had to charge me for any late payments or anything, except for this interest. I've been trying to chip at this overdraft for ages, am weary of losing whatever I manage to pay off by having interest taken each month. Just want to get on with other things, knowing money isn't going down the plughole via interest payments.

But can I ask more about what you've said about possibly extra fees being added if I do default? Have you known any cases where this has happened? Were these fees added on at the same rate as interest would have been taken? If that is the case, then I'm not going to save any money in the long run at all! I daren't contact NatWest as yet, although if it is going to be the case that regular fees of a similar amount to interest would be added to the outstanding debt, it's better I know that, as then there'd be no point in changing banks!

The CCCS didn't mention anything about extra fees ... their angle was to remove the income from the NatWest account, thus meaning I gain control. They said that only if I didn't make the payments would things get unpleasant, e.g. bailiffs threatened ... I never miss a payment for anything. Not overhappy about the defaulting, court etc, but compared to money going down the plughole and continual stress of trying to clear an overdraft that is thwarted by the interest payments, plus I can't work for another 2-3 years at least, so can't earn ...

It's not something I'd normally do at all, but to lose that amount of interest a year when on IB and when got surgeries coming galls me too much, so much so that I'd consider something like this. Can I ask if a bad debt rating would affect anything else apart from the stuff I've referred to?

Any 0% cards I looked at only had a 6 month time period, and all of them charged for cash in advance. There's no way at all in 6 months that I can pay off the full £900 of the £1400 overdraft, but, if default fees are going to mess everything up, want to keep options open before sign any forms to open new bank account etc. Would welcome any other suggestions, bearing in mind I can't afford to pay a lot.

Many thanks, Cat

freshstart_4

Had a rethink, and have transferred £500 from credit card to Switch. At least that stops lots being taken in interest each month, and, by paying credit card off asap, should be a better solution. Wasn't too keen on having bad credit, dealings with court etc, really.