Overdraft turned into a loan?

evilbanks

Hello

New to the forum and I need some advice from the good people of this forum please.

I have two accounts which are currently overdrawn, Halifax is £500 and HSBC is around £400.

I opened a Halifax bank account some time ago and instantly received a £1,000 overdraft limit. I was employed full time back then so it was convenient to have, however as my employer wasn't paying me on time I was using the overdraft thinking I'd top it up once I'd get paid. I didn't keep track of what was going on with me financially (my stupid mistake) and I started dipping into the overdraft.

Before I knew it I'd lost my job and I spent most of my overdraft with the Halifax bank, around £700 of it. I had also spent some of my HSBC overdraft, around £600 of it. Now both these are overdrafts, not loans / credit cards or anything else.

Both banks HSBC and Halifax have passed my accounts onto debt collectors, Apex, Blair Oliver & Scott and now Fairfax Solicitors (Eversheds).

I was making payments each month which started from around £20 per month down to £15 and now down to £10.

Fairfax Solicitors contacted me recently saying we now want you to pay us £28 per month, I simply cannot afford this as I am currently unemployed and on Job Seekers Allowance. :embarasse
They have sent me a Financial Questionnaire to fill out with all my expense details along with bank account statements to be sent back to them, a bit harsh no?

Have these overdrafts somehow turned into loans as I'm still within my overdraft limit right?, I'm wondering why have my accounts been passed onto debt collectors treating me like I owe them 50K+.

Please advise on what I should do and what would be the best thing to do.

Thank you.

DarkConvict

Only the court can legally request to see your bank statements, all you need to provide is a monthly income & expenditure sheet - http://www.nationaldebtline.co.uk/england_wales/budget_sheet.php?country=england_wales

Because your on benefits i believe that income is protected, it is seen as an income and as a cost. I would therefore be paying only £1 per month. If they go for a CCJ a court will only award what you can pay even if that is £1 a month.

DCAs are vicious, even chasing small debts of £70 or £70,000 it doesn't matter to them. Been commission based the quicker you pay the more the agent gets. If you want some professional advice give national debtline or CCCS a call for free.

Tixy

Hi and welcome

I suspect what has happened is at some point the banks have withdrawn your overdrafts. As overdrafts are repayable on demand banks often withdraw them if they notice you have a change in circumstances (eg no longer having your salary paid in).

However if this has happened then certainly should have written to you to inform you.

Which account is with fairfax?

You don't have to provide bank statements to fairfax. In fact you don't have to provide anything but it is usual to send them an income & expenditure account to show how much you have coming in and how much left to put towards debt repayments.

evilbanks

Thanks DarkConvict, I hope it doesn't go to court! and they settle after seeing my Financial Questionnaire.

I'll try the National Debtline on Monday hopefully.

___

Hi Tixy, thanks for the welcome.

I'm confused as my Halifax overdraft is £1,000 and I'm around £500 overdrawn. If they have removed my overdraft facility then I wasn't informed of this in writing.

Today Iv'e received a bank statement from Halifax and near towards the bottom of the statement it says 'Arranged Overdraft - Not Available' so I think you're right they may have withdrawn the overdraft. I feel like going down to the branch I opened this account and giving them hell.

It's the Halifax account that is with Fairfax.

Yeh, I'll fill in the form and send it back to them, see what they come back with.