Advice please re settlement on a closed bank account debt

TheDevilWearsPrimark

I hope someone here can help, I am asking for my brother.

When he began his gap year and moved out of home he set up a natwest account. He was persuaded to open a 'gold account' for around £15 a month, and being fairly young and clueless he agreed (as far as I can tell it gave him no benefits).

He had his wages from temping paid into this and also set up a direct debit for his tv license and broadband. Then in March he became very ill with colitis and was in hospital for four months. He failed to notify the bank, obviously his error but understandable given the circumstances. When he was let home he checked his statements to find himself over £400 overdrawn, all in charges. This was from the direct debits repeatedly bouncing, and most annoyingly from the bank themselves who kept trying to take the charge for his account.

He set up a new account with Barclays and wrote to the bank explaining the situation but they have refused to help him. The account was closed and passed to debt collectors and he is now owing £560. The collection company contacted him yesterday and have offered him a settlement figure of £200 which seems reasonable, but I can't help thinking there is something else he can do as all of the debt is charges. He can just about afford it as he is at uni now but working 30 hours a week.

Can anyone advise? Thanks.

TheDevilWearsPrimark

I am laughing at my thread title now, it's a bit garbled.

TheDevilWearsPrimark

I'll take it that's a no then.

(scurries off to her usual much friendlier sites)

misspoppy

Hi

you have to give people time to answer your question lots of people are at work and can't see the site during the day.

I'm no expert but I would say he could certainly claim the bank charges back there is a lot advice about this on the site. He could also also write to the debt collectors and tell them the debt is in dispute which it would be if he claimed the charges back, that way the collectors would have to refer it back to the bank.

Like I say I'm no expert but you seemed to just want some answers

milliemonster

Hiya hun, don't disappear just yet!!!!, I think now the debt hs been passed to the debt collectors a settlement of £200 is very fair, I agree that the charges initially were completely unfair and you need to look at reclaiming these, there is the information on this board on how to go about this, in the meantime, I think your brother should just pay the £200 and then start the reclaim process

good luck!

Jesthar

Hi Primark,

Don't worry, someone who can help in this area should be along soon - things can get a bit crowded in here!

In the meantime, I suggest you check out the 'Reclaim 1,000s' section of this site, it's all about getting money back from banks who have 'charged' you a fortune. I was checking it out last night for a friend who is in a similar boat, and although claiming bank charges (as opposed to credit card charges, where the banks have already lost the battle!) is currently on hold pending a court case finishing (hopefully January), it seems very likely that the banks are going to lose out and have to pay a lot of money back on those, too!

Hope that helps a bit.

~Jes

TheDevilWearsPrimark

Sorry I am impatient! Thanks to you both.

(gives self slap on the wrist)

He did send copies of his correspondance with Natwest to the debt collector, but as they have decided the charges were fair there is nothing they can do.

If he pays this off (I agree it's a good offer!) surely he can't reclaim the charges later given his account is closed and clearly the debt has been sold off?

TheDevilWearsPrimark

thanks to Jesthar too.

I'll have a look around. It's a confusing board tbh, I'm having trouble finding my way around it.

TheDevilWearsPrimark

Sorry a little off topic, but how on earth do you see the threads you are on without having to trawl back and find them again?

Jesthar

TheDevilWearsPrimark wrote: »

Sorry I am impatient! Thanks to you both.

(gives self slap on the wrist)

He did send copies of his correspondance with Natwest to the debt collector, but as they have decided the charges were fair there is nothing they can do.

If he pays this off (I agree it's a good offer!) surely he can't reclaim the charges later given his account is closed and clearly the debt has been sold off?

I don't really know, but I'd hope the debt collection agency didn't get the final say on what is 'fair' - they're just after money!

Try this article for starteds - it will help your brother get the ball rolling:
http://www.moneysavingexpert.com/reclaim/bank-charges

As to how to find threads, I wish I knew! :rotfl: I just look for the ones with arrows on the message icons to show me what I have posted on...

TheDevilWearsPrimark

Right I've offered to pay it for him, it will be his xmas and birthday presents until he graduates [grin]

But from the press I've seen reclaiming bank charges has been frozen for now, so should he just sit and wait, or is it worth starting claim now?

Thanks again, I'm clueless with this things.