my story - advice please

spireite_boy

ok, a while ago i was out of work and on the dole, my overdraft escalated due to me not being able to put money in, i went to the crb and they gave me a simple letter to right to my banks solicitors (who were now threatening court action) - the letter i sent offered them a £10 a month. a few week later i received a letter back from them which had my bank details on it and it said "your offer of £0.00 per month has been accepted..... please make first payment within 7 days"

this astonished me as it was obviously a mistake, but i have stuck to my promise of £10 per month and i am now back in work, yesterday they rang me up asking to offer more money per month, just wondering should i up my offer to around £50 per month which i can now afford or leave it as it is? afterall my letter that i received from them clearly said i owed them nothing in first place?

Tixy

The letter your received did not say that you did not owe the money.

It may have been a typo for the £10 you offered or sometimes creditors will agree to accept no payments for a short period of time until your circumstances improve.

Are you having your wages paid into this overdraft or are you using another account?

Do you know if they have continued to charge fees and interest on your overdraft? Has a default been issued on the account? Have you checked your credit report to see what impact this is having (its likely to affect your chances to get credit for years).

If you can afford to offer them £50 a month then do that, you owe the money and it needs to be repaid.

spireite_boy

my wages now go into another account, and my account with llyods is closed and i hand the money over the counter with a slip that goes to their collections, thanks for the advice, i will ring them up and agree to the £50 per month, i know it willl have seriosuly affected my credit score, once it is all paid back how long is it likely to be before it comes good again? many a year?

Tixy

It would depend on what has been entered on your credit report (default, arrangement to pay etc) but as a guide if a default was registered then that remains on your credit report for 6years from the date of default.