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Urgent help needed please

Hi,

I'm in some what of a panic today because I recieved a defualt notice on my cahoot bank account (abbey national).

My account went over the agreed limit by £4 because of a penalty charge ages ago. I then sent abbey the LBA letter, and they sent me correspondance back saying that they will keep me updated with the court case and sort it out when it finishes-hence I didn't submit a claim to court.

They didn't put the account on hold and now the account stands at £2500. I lost my job last week and have no means of paying this back at all.


They also sent the letter to my old address for some reason so I only recieved it today and the 2 week period they set out for full payment is next tuesday, which gives me little time and is why i'm seriously panicking. I don't have this kind of money.

If anyone can help i'd really appreciate it of what I should do next.

IS there anyway I can submit a claim to the courts now for claiming back penalty charges?

the entire amount over my agreed overdraft is made up of this and subsequent interest charges.They have not sent me a letter regarding my original claim for these to come back just this default letter.

I will post the letter that they sent to me.

"you are in breach of clause 8 (a) of the terms and conditions of your above agreement which requires you to pay any amount in excess of the agreed overdraft limit immediately.

Your account is now in arrears and the sum due to us is shown above.

You can remedy this breach by paying the sum of £2048.38 to us within 14 days of the date of this notice.

If the action required by this notice is taken before the date shown no further enforcement action set out below may be taken against you.

If you do not take the action required by this notice before the date shown then the further action set out below may be taken against you.

Further action intended.

IF the payment required is not recieved by us before the date shown we shall become entitled to demand payment of the whole outstanding amount (inc interest and other sums due)

We may take legal proceedings against you for the recovery of the full amount which currently stands at £2548.38 or we may refer your account to a debt recovery agency.

If you have difficulty in paying any sum shown under the agreement or taking any other action required by this notice, you can apply to the court which may make an order allowing you or any surety more time."

Comments

  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    You can make whatever claim you want to the courts as long as you pay, and as 1 million people are about to discover, that could be money down the drain.

    Why not talk with your bank to see what agreement can be reached over repaying the debt rather than wasting money on court costs?

    However, I fear your time for negotiating has now run out. Banks, like everyone who is owed money, only have so much patience.

    Better to have a plan to pay off the loan, prevent further costs accruing and possibly a CCJ being recorded against you. Flog any assets if necessary - you'll probably get more for them than a bailiff will at a distress auction.
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    "If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools"
    Extract from "If" by Rudyard Kipling
  • chipbeck
    chipbeck Posts: 1,372 Forumite
    1,000 Posts Combo Breaker
    Don't Panic someone with a little more heart will reply I'm sure.
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    chipbeck wrote: »
    Don't Panic someone with a little more heart will reply I'm sure.

    If not and the OP was actually seeking emotional support rather than practical advice on the current issue, then perhaps the OP may want to try here. :)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • musashi10
    musashi10 Posts: 454 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Hi,

    I don't have any assets either and the loan was unsecured.

    Still not sure what to do.
  • chipbeck
    chipbeck Posts: 1,372 Forumite
    1,000 Posts Combo Breaker
    musashi10 wrote: »
    Hi,

    I don't have any assets either and the loan was unsecured.

    Still not sure what to do.


    Offer to pay what you can afford.
  • musashi10
    musashi10 Posts: 454 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Unfortunately I lost my job and I can't afford to pay anythinng back until I get another job.

    Is there no way that I could try under section 5 for a claim for the charges? Or is there now no hope of winning a case where the total charge is made up of charges?

    I also thought they were suppossed to put the account on hold after the LBA action letter suspending more charges and interest which they did not do.
  • chipbeck
    chipbeck Posts: 1,372 Forumite
    1,000 Posts Combo Breaker
    As it isn't the end of the charge case I think you can dispute them. I'm no expert but if they are in dispute I think you can hang on. Some one with a better understanding will no doubt advise you soon.
  • musashi10
    musashi10 Posts: 454 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks. I hope so.

    Although I thought the case was over?
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    Q. How likely is it I will get my money back?

    A. Much less likely than prior to the result, but not impossible. Still, the best thing to do is plan for getting nothing, but cross your fingers.

    As we know many people would like a 'what's the chance' type answer, our instinctive guess is even with the new argument there is only a 10-20% chance of most people now getting charges back.
    http://www.moneysavingexpert.com/news/reclaim/2009/11/bank-charges-qa-door-reopened-for-reclaimers
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
This discussion has been closed.
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