HELP! My old bank are keeping me in debt!

eazy01

Back in 2005 i ran myself into debt with Natwest when I attempted to quit my glass ceiling well paid job and make efforts to change careers by becoming a student. This didn't go well. In the end i had to admit defeat knowing that the income i was on would never get me out of my overdraft. I have three accounts with them - One main account which i owed around £1600 on and another one which I owed around £70 on (due to a few bank charges). Natwest put default notice charges on these accounts and I went on to get a new account when i signed up with Gregory Pennington - a debt management company. Around this time i was getting alot of calls from debt chasers threatening to send bailiffs to my house. It was quite worrying as I didn't realise they were allowed to bend the truth to get money from me. I just wanted it to stop. Eventually Gregory Pennington made them stop and forced my creditors (in addition to Natwest I also owe money to MBNA and First Direct) to accept lower rates and freeze interest and charges. They managed to freeze interest and charges with everyone except Natwest. Due to my accounts going into default I was told by Natwest that my accounts had been 'put together' as one debt. They also stopped sending me statements. I should have chased them for these but I was comfortable now as I wasn't getting threatening phone calls and sat back feeling safe that if i keep paying Gregory Pennington my reduced rate i'll eventually get out of my hole with minimal stress. Years went by with no word from Natwest...

In early 2009 i got a letter in the post from Triton (a debt recovery service that is part of Natwest) saying that I owe around £2600. This is when my mate told me about Moneysavingexpert.com -- Still in disbelief I asked for my last 6 years of statements (which i got with minimal effort) and found the following --

1. Natwest have been continuing to put bank charges and interest on to my main account cancelling out all payments Gregory Pennington have made although it is inconsistent which suggests their is some level of cooperation
2. The money was only put into the main account so the smaller account which was originally around £70 overdrawn is now around £1000 overdrawn (why would they not contact me while this is happening?)
3. No interest was charged on the smaller account - just the big one - which is another inconsistency that suggests that they do what they want simply because they can - not because the 'terms' say they are supposed to.
4. The total of the bank charges over the last 6 years plus the 8% interest awarded by the court is enough to cancel my entire debt to Natwest with change to spare.

I have spoke to Gregory Pennington and they feel there is nothing I can do about this as Natwest are apparently allowed to continue charging you if they want to even though I have not used their services since 2005. Is this really fair? Surely the whole point of these debt management schemes (which are supported by the Government are they not?) are to help people drowning in debt by stopping interest and charges and creditors are meant to cooperate fully with them otherwise what's the point? I'm sure no bank would openly admit that they thrive on keeping people in levels of debt that they can't escape from??

So I attempted to make my claim feeling i'd qualify for financial hardship as i've been with a debt recovery programme and that at the time i was about to be unemployed (which luckily wasn't for very long). Natwest felt that I still had enough money to survive although you could quite clearly see from my assessment form I am literally 'living in debt'. I then rang Natwest and spoke to a lady in their Customer Relations department who explained that to be considered as being in financial hardship you would have to be on benefits with Natwest still charging you to the point "you can't afford to feed your children" (their actual words - and fortunately i don't have children). The lady i spoke to felt maybe if i sent in my P45 it might be reconsidered as even she felt what she had just told me did seem a little ridiculous. I sent in my P45 and a letter explaining again my situation with Gregory Pennington and this time accusing them of 'keeping me in debt' by not freezing interest and charges comparing them to my other creditors who happily agreed to Gregory Pennington's terms. Their response to this was to send me another assessment form and a letter explaining that they feel that everything they've done is fair and they can keep charging me due to their terms.

So this is where I am now.

The most heartbreaking thing is knowing that all that effort has gone for nothing - money i can't afford simply poured down the drain. Is Natwest really allowed to do this? I think it's fair to say I am being 'kept in debt'.

Is there anything I can do? I need help. And I don't mean after the test case. Is there anyone who can help me defeat these 'vultures'??

natweststaffmember

Marvellous, you have an acknowledgement from NatWest for your claim? Tell Triton that the account is in dispute and therefore you will only deal with NatWest. If they threaten to take you to court, then even better as you can counterclaim for the bank charges.
You don't need to defeat the vultures but you can keep them hungry

As an aside, how come you haven't claimed the charges back on the credit cards since that should reduce your overall debt with Gregory Pennington?

nickyipoo

Hi There,

I am currently having a battle with natwest regarding interest and charges on my gold account. over the last year and half they have added £941 in interest which I have asked for back aswell as the £2225 of charges they have added. I have received an offer regarding the interest but have refused insisting I want the full amount back. If you ring Payplan who are a debt management service that don't charge you they can advise you. There are key words such as code of banking (which they have signed up to)states they have to treat you fairly and sympathetically!! They are not treating you fairly and threaten to take them to the financial obudsman that is what stirred my recent offer.

Just keep confident and don't bother ringing you will go round in circles and end up extremely annoyed, just send letters quoting the right words, a payplan advisor helped me compile my initial letter to Natwest using the right language.

Hope this helps, keep fighting.

natweststaffmember

nickyipoo wrote: »

Hi There,

I am currently having a battle with natwest regarding interest and charges on my gold account. over the last year and half they have added £941 in interest which I have asked for back aswell as the £2225 of charges they have added. I have received an offer regarding the interest but have refused insisting I want the full amount back. If you ring Payplan who are a debt management service that don't charge you they can advise you. There are key words such as code of banking (which they have signed up to)states they have to treat you fairly and sympathetically!! They are not treating you fairly and threaten to take them to the financial obudsman that is what stirred my recent offer.

Just keep confident and don't bother ringing you will go round in circles and end up extremely annoyed, just send letters quoting the right words, a payplan advisor helped me compile my initial letter to Natwest using the right language.

Hope this helps, keep fighting.

Are you aware that any offer that is not the full amount does not mean you cannot reclaim the rest on the conclusion of the OFT test case?
By rejecting the offer you will wait, literally MONTHS for them to look at the case and they may agree with NatWest.

eazy01

Hey guys,

cheers for the response.

I am now in a work experience job and i get paid so little that on the Natwest assessment form for financial hardship i come up as having minus amounts to pay bills. I am awaiting Natwest's response. When they eventually come back to me with their dodgy excuse for why they still think i don't qualify, what do i do next? Can i then go straight to a financial ombudsman? or do i make one more threat by letter?

I'd also like to get my interest back from them too - does anyone know the exact meaning of a DEFAULT NOTICE CHARGE being put on your account? I had these put on the accounts i owed money to back in 2005 (i then stopped using the accounts and went to Gregory Pennington) but Natwest still continued charging as normal after that (?!?!). I thought they meant 'your contract is broken' and that your accounts are no longer in service so in theory that would mean they stop charging??

natweststaffmember

eazy01 wrote: »

Hey guys,

cheers for the response.

I am now in a work experience job and i get paid so little that on the Natwest assessment form for financial hardship i come up as having minus amounts to pay bills. I am awaiting Natwest's response. When they eventually come back to me with their dodgy excuse for why they still think i don't qualify, what do i do next? Can i then go straight to a financial ombudsman? or do i make one more threat by letter?

I'd also like to get my interest back from them too - does anyone know the exact meaning of a DEFAULT NOTICE CHARGE being put on your account? I had these put on the accounts i owed money to back in 2005 (i then stopped using the accounts and went to Gregory Pennington) but Natwest still continued charging as normal after that (?!?!). I thought they meant 'your contract is broken' and that your accounts are no longer in service so in theory that would mean they stop charging??

No it doesn't. I am not really that knowledgeable on what you are asking so will ask someone I know to advise.

eazy01

Natwest have finally come back to me saying they have sufficient funds despite the fact the assessment i submitted says I have minus amounts to pay bills with. I'm going to take it to the financial ombudsman now -- any advice??

I don't see how natwest can dispute that I qualify for financial hardship now - I'm in the minus figures - I'm not paying bills!! How does not paying bills mean I have "sufficient funds"?? Have I missed something??

willo65

eazy01 wrote: »

Natwest have finally come back to me saying they have sufficient funds despite the fact the assessment i submitted says I have minus amounts to pay bills with. I'm going to take it to the financial ombudsman now -- any advice??

I don't see how natwest can dispute that I qualify for financial hardship now - I'm in the minus figures - I'm not paying bills!! How does not paying bills mean I have "sufficient funds"?? Have I missed something??

I suppose it depends on what bills, is it Gas/Elec/Mortgage or is it Sky/Broadband/Mobile etc?

natweststaffmember

eazy01 wrote: »

Natwest have finally come back to me saying they have sufficient funds despite the fact the assessment i submitted says I have minus amounts to pay bills with. I'm going to take it to the financial ombudsman now -- any advice??

I don't see how natwest can dispute that I qualify for financial hardship now - I'm in the minus figures - I'm not paying bills!! How does not paying bills mean I have "sufficient funds"?? Have I missed something??

Do you have priority debt arrears(mortgage/rent, council tax, utilities)?
Do you use another account now?

natweststaffmember

willo65 wrote: »

I suppose it depends on what bills, is it Gas/Elec/Mortgage or is it Sky/Broadband/Mobile etc?

Am always intrigued by you willo, do you work in the financial hardship team?(feel free to private message me the answer cos there is no way I am asking you to answer that question on an open forum)

eazy01

willo65 wrote: »

I suppose it depends on what bills, is it Gas/Elec/Mortgage or is it Sky/Broadband/Mobile etc?

Everything except rent, council tax and food. I only make £500 a month.