Help Please

saffrwn

Hello everyone

Could someone please help me, some time ago (4 years)we entered into a debt management plan, one debt was all made up of bank charges. we successfully reclaimed the bank charges, but we are still paying back the debt through the management plan.
It seems to me that we should not be paying this debt now.
Should the bank have instructed their solicitors that they had repaid the bank charges?
Are we able to reclaim the payments we have made against this 'debt' this amounts to about £400 now with about £1400 still to pay?
Also who do we contact the bank (we no longer bank with them) or the solicitors acting for the bank.
How would we word our letter to them?

Sorry for so many questions, but i hope someone can answer them for me.

Thanks
Saffrwn

nickmack

saffrwn wrote: »

Sorry for so many questions, but i hope someone can answer them for me.

Presumably, the payment you received in respect of the charges covered the amount outstanding? Therefore, you use that to pay off the outstanding debt in the DMP.

saffrwn

nickmack wrote: »

Presumably, the payment you received in respect of the charges covered the amount outstanding? Therefore, you use that to pay off the outstanding debt in the DMP.

As the 'debt' was all charges surely there is no 'debt'

nickmack

saffrwn wrote: »

As the 'debt' was all charges surely there is no 'debt'

I'm not sure I understand you. When you use the reclaimed charges to pay the DMP, you will owe nothing, which puts you back in the same position you were before the charges were incurred.

saffrwn

the sequence of events

my overdraft is £1800 made up of bank charges - bank passes this £1800 to debt collector - i start paying back at £20 per month - I reclaim £1800 bank charges from bank - but debt collector is still having £20 per month to pay back debt i didn't owe in the first place.

hope that makes sense.. can i reclaim what i have paid to the debt collector?

thanks

nickmack

saffrwn wrote: »

my overdraft is £1800 made up of bank charges - bank passes this £1800 to debt collector - i start paying back at £20 per month - I reclaim £1800 bank charges from bank - but debt collector is still having £20 per month to pay back debt i didn't owe in the first place.

hope that makes sense.. can i reclaim what i have paid to the debt collector?

No, you use the money you've reclaimed to repay the debt collector in full. You then have no overdraft made up of charges and no debt to the collectors. You are in the position you were before the charges.

saffrwn

so let me get this straight
the bank takes my money making me overdrawn
they tell a debt collector to collect the overdraft
I start paying the debt collector
i then get my money back from the bank
i give it to the debt collector
who gives it back to the bank

nickmack

saffrwn wrote: »

the bank takes my money making me overdrawn

You are owing £1800 to the bank through charges

they tell a debt collector to collect the overdraft

You are owing £1800 to the collector, £0 owed to the bank

I start paying the debt collector

As you start paying, you are owing £1800 minus whatever you've paid

i then get my money back from the bank
i give it to the debt collector

If you give them £1800 minus whatever you've already paid, you owe them nothing and the remainder reimburses you for what you paid.

who gives it back to the bank

No, they've already sold the debt