Allied International chasing

Ellieseleven

I wonder if anyone can advise how to proceed with a debt that is now being chased by Allied International?

My daughter had a £1000 overdraft with the TSB whilst she was a student. She did have a part time job and her wages were paid into the TSB at the time. As part of the course that she was doing she had to take a six month placement which meant she left her job and moved away in order to complete the placement. The placement was supposedly a paid position but she found that the salary she actually earnt was a lot less than she had expected.

This caused her financial difficulties which she is still trying to deal with. She is now on a DMP with her creditors for all her debts apart from the overdraft that she had with the TSB.

TSB started to add interest at a rate of £20 per day up to a maximum of £200 per month which quickly became £1200 so my DD then approached TSB and made an agreement to pay £100 per month off the balance but...

as fast as she paid £100 they charged £200 so the balance never reduced but instead increased until it was around £1800. At this point she gave up and stopped paying altogether. By this time she had paid probably around £1300 but it didn't reduce any due to the interest.

She has spoken to TSB on the phone, by letter and in person at the branch but she has never been able to resolve the issue. Now she finds that the debt has been passed to AIC and they are now hassling her by phone.

We would be grateful for any advice that anyone can give as we are unsure how to proceed with this. My daughters DMP is almost complete and has around 6 months to go.

RAS

HAs she looked at reclaiming charges on this account. I doubt if this was £20 per day interest, more likely a daily unauthorised OD charge, which would be unacceptable now.

Ellieseleven

Hi Ras, yes she's got a claim in for approx. £3000 on bank charges. Sorry yes it is the OD charge that has been applied not interest

Ellieseleven

Should she offer some sort of payment?