Is it possible to close or freeze an overdrawn bank account?

nikkinak_3

Hi all,
Please bear with me as Im new. I could really use some advice regarding my Alliance & Leicester account.

Basiclly 2 months ago I missed a direct debit and this has caused a domino effect with hundreds of pounds of charges being applied to my account.
Although the charges are extortinate, it is my own fault for burying my head in the sand and hoping the problem would go away, however I plucked up the courage to open a statement today and I owe them almost £500.00 in charges, with more due on. I have now cancelled all my D/Ds.

Before I phone them in the morning, I would like to know if there is any way of sort of freezing the amount I owe, rather than more charges going on every month, then I was hoping to make an arrangement with them to repay a set amount each month.

Im guessing they will not let me close this until the money is paied off?

Also could they take me to court for this sum of money? I am a lone parent and get no financial help from my childerens dad.

A big thanks in advance for any help or opinions you could give me!
Nikki

thatsean

Hey Nikki, welcome, and congratulations for having your light bulb moment - lots us us have been there.

You won't be able to close the account, but many banks will allow you to set uo a repayment plan to clear the balance. Do you have another account yet? If not, I urge you to sort one asap, with a different banking group. If you're worried about your credit score then check out the basic accounts thread.

Make a budget of what you can afford to repay and then offer that to to the bank.

Regarding court action - they could, but are unlikely to bother, especially if you offer and maintain a payment schedule. Best of luck, let us know how it goes.

S.

nikkinak_3

Hi, Thanks for your advice (and not telling me off!!) I also have a basic Flex account with Nationwide that I am using at the moment. As for my credit rating, its not too good due to previous debts, so Im trying not to worry about that just yet.

One last quick question, If I set up an agreed repayment plan with the bank, could they still keep charging me every month or do you think they would be able to freeze the current figure?

Thanks again, Nikki