Overdraft problem - please help

Blina_2

Hi,

I am a final year student, i have 2 bank accounts, i'll call them bank h and bank n. Both were originally current accounts. I decided a needed a overdraft, so i made Bank h an student account at the start of last year (and got a £1250 OD). Towards the middle of last year i had used about £1240 of it.

Yesterday i went to check my balance at the cash machine and the machine just swallowed my card. So i went in to the bank h branch. They told me i was over the OD by £14. So balance was -£1264. They said they had sent numerous letters, but they were sent to my term time address only which was out of date and not my current address. I had received none and the system said all letters sent were returned. The bank h employee told me my overdraft was cancelled and i would need to pay back the £1264 in full and that a final notice had been issued, so there was nothing he could do. He told me to call the head which i did. But my credit record had not been affected yet.

They told me i could pay it off in installments (with interest) and that i could take a loan with 12.1% interest. And they asked how much i could afford? I said very little. I asked if there was a alternative. I was told if i took a student loan (from student loan company), they may re-instate the overdraft. I have a student loan, but paid it into bank n, but this was done automatically as it was the default bank from my first year (before bank h was a student account). I have about £1500 in bank n. I asked if my parents put some money in to the account, would it be possible to re-instate overdraft - they said possibly, but they want to see regular money going in.

I was told the case would be passed onto a debt collection agency on the 26th of jan. In panic I told bank h i had applied for a studnet loan, but wasn't sure how long it would take (as i did not want to tell them i had paid it into bank n, as i was suppose to pay it into bank h as it is my student account. They have given me till 9th of feb before they issue a final notice and pass it to a debt collection agency.

So do i tell them the student loan was paid into bank n? Or tell them my parents will give me some money and use the £1500 and put some of that in bank h?

Also the lady on the phone said my credit record will be affected. Is this true?

Any help, greatly appreciated.