Came home to scary letter from bank, please help!

PARIS_5000

littlepinkstars44 wrote: »

it was my old student overdraft

Why have they defaulted the account is because you have gone over the overdraft or not pay enough money into the account every month.

Can you give me a full picture of the situation and I will try to help you .

Do you have a another bank account that you can pay your money into because as the bank has defaulted the account they may close the account ASAP.

The worst thing that I think that they may do is place a default on your credit file for 6 years and sell the debt to debt collection agencies.

I would not worry about court because you are a full time student and if you did go to court the judge would accept payments of 1 pound a month however you could end up with CCJ as well for 6 years.


Please update on your diary.

littlepinkstars44

I dont use the account at all anymore, and havent done for over a year.
I now am in my 3rd year of my student account with RBS.

After 2 years of having the Bank of Scotland account, they said they were changing it from a student acccount because i had changed colleges and hadnt told them, but i was still a student. After that i went over my limit and had the card took off me for the account, i was paying £50 a month over the phone from my RBS account to get it back to its overdraft limit. Once i had done that i never bothered with it again...until i got this letter.

RAS

Hi

if you had made some monthly payment, you might have avoided this default. See if you can arrange a deal.

PARIS_5000

Okay I understand now I think that you should work out a payment arrangement with them to stop the default notice. However if the amount that you offer is too low they will just default you and sell the debt to a debt collection agency.

A default is very serious because it will ruin your credit for 6 years and the only credit that you will be able to get is sub prime which will have a high APR.

littlepinkstars44

thanks, i already have a default from Bank of Scotland before, about 3 years ago. So i dont really want another one.
It makes you think sometimes, how can a 22 year old get into so much debt?!

Ames

If you're at uni, then very easily. Student loans don't cover the basics, so you have to get into commercial debt. I don't know any students, even the ones with rich parents, who have finished without debt.

DarkConvict

Ames wrote: »

If you're at uni, then very easily. Student loans don't cover the basics, so you have to get into commercial debt. I don't know any students, even the ones with rich parents, who have finished without debt.

If your on low income it is possible under the old system £1500 a year tuition, but you really have to work alot if you are not living at home, to pay the rent onto of basic food.

littlepinkstars44

See i do live at home though, and in Scotland our student loan and bursary are different, we get them every month.

PARIS_5000

littlepinkstars44 wrote: »

See i do live at home though, and in Scotland our student loan and bursary are different, we get them every month.

What are you going to do about your default notice.

littlepinkstars44

I dont know yet