preferential payment?

dumb_blonde

hi all wonder if u can give me some advice?
Have a natwest account with 2000 overdraft.Also have an offset mortgage with them and a bank loan with them.
Recently lost jobs so went to CAB and they have wrote to our creditors (including natwest regarding overdraft)offering £1 per month.
The unemployment insurance is paying money into our account for the loan.
The mortgage is still on direct debit with the natwest.If we pay money into the account to cover the mortgage,will it be classed as going towards the overdraft?
If we could get someone to pay off the overdraft(bank of mum and dad)would this be classed as preferential treatment and therefore break our agreement?
Have only recently sent letters from CAB to our creditors and made the first £1 payment so not had any response yet as to whether they will accept it.
Any help appreciated.

fatbelly

The standard advice that I would have expected CAB to give is to 'wave goodbye' to your Nat West overdraft, open a new bank account with a bank unconnected to any of your debts and to use THAT for all income and essential expenditure (incl mortgage).

It's good to hear that Mum & Dad are prepared to help but it's going to be difficult to advise where that help should best be applied until you do a statement of affairs.

There's a calculator here - just remember to format for mse.

dumb_blonde

thanks for replying,we have opened a new account but the natwest wouldnt let us cancel the direct debit for the loan(we tried to while we were waiting for the insurance to pay out).Also if we switched the d debit for the natwest mortgage to another account can they not "invade" the account to take money for the overdraft? I also hang my head in shame that parents haveto help me out at my age and i can only blame myself for being naive and stupid when it comes to financial matters.Hopefully with the help of everyone on this site this wont happen again.

fatbelly

dumb_blonde wrote: »

we have opened a new account but the natwest wouldnt let us cancel the direct debit for the loan(we tried to while we were waiting for the insurance to pay out)..

That's the way it works. The unusual thing about your situation is that the ppi is actually making payments! I take it that that is the only payment going in and that it balances the d/d loan payment. No problem. Leave it alone. I do hope your new account isn't with the RBS group.

dumb_blonde wrote: »

Also if we switched the d debit for the natwest mortgage to another account can they not "invade" the account to take money for the overdraft?

No, they can't. If you want more control, pay the mortgage by standing order or by a monthly manual payment.

dumb_blonde

no it is with barclays,just the basic account.thanks for your help.

Merlinexcalibur

Good, then they cannot 'invade' it, then.

dumb_blonde

sorry weird way of putting it i know.

dumb_blonde

this MSE thing is a bit addictive,I spend hours reading everything to get info.

Merlinexcalibur

Not wierd knew what you meant. Sometimes it is the ONLY way to get the info required, as many places where you can obtain it for free have since vanished. So, yes, invaluable tool.

fatbelly

dumb_blonde wrote: »

this MSE thing is a bit addictive,I spend hours reading everything to get info.

We've all been there...