Bank relationship broken down - help!

v8monkeyboy

Hi,

I posted this in another forum, and it was suggested I try here instead

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

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RAS

Hi

What advice did you take before you contacted NatWest?

SunderlandBlackCat

You should still be able to get a basic account from another bank

There's a list of what's available on page 2 of this - http://www.payplan.com/pdf/bank_acc.pdf

inamess200

You can apply for the Coop cashminder online - it gives you an delectron card and internet banking but no cheque book or overdraft. I did this before I sent out any letters to my creditors as I had a loan and Overdraft with my bank and for a few months even after I'd stopped my using my overdraft they carried on taking the loan payments in full ?? therefore increasing overdraft decreasing loan.

v8monkeyboy

Thanks for your replies.

I took advice from a friend who is also a financial advisor. My husband has called the bank to ask why, and has been told that they can do nothing because there is no reference number and no name on the letter.

I have been advised to basically take out my husband's wages when they are paid in tomorrow and leave the overdraft intact, then go and open a basic bank account. Does that sound reasonable? Apparently, we've got off quite lightly in that they could have taken money from the joint account to pay off money in my accounts.

RAS

Absolutely.

Before you do anything re debt, it is recommended that you set up another account and get your salaries and benefits paid in and your SOs and DDs transferred. Otherwise the old account holder can take all your income or your current balance to off set against you loan.

Chimpfeet

Was the overdraft/loan default notice with the Natwest?

v8monkeyboy

Chimpfeet wrote: »

Was the overdraft/loan default notice with the Natwest?

Yes it was.

Have now managed to open a basic account for my husband, and a student bank account for me, so we can transfer everything over to these two.