Big trouble with bank

Worried_one

Hi all,
I have been having a lot of trouble with my bank.
I was self employed but my business closed due to the collapse of the housing market but my business account was not in the red and I had no business loan so that isn't my problem.
The problem is that due to the loss of my job I have only been able to get a part time job and unfortunately I ran up my Nat West overdraft to the 200 limit.
I did not use the account any longer and contacted the bank via the CAB ...the CAB sent a budget sheet offering the bank the only offer I had of 1 pound.
The bank did not reply for months but continued adding interest , I rang them to inform of the situation and they told me I had to borrow money from my family (My family cannot afford to pay my debts!!) I said I had no one who could pay the overdraft off and the man said I had to ring someone in my family and have a three way conversation with them and the bank!!
The result of the conversation was that they said they would close my account and make sure I had a bad credit record...I had no choice but to agree.
Months went by with more interest added, then got a letter last month asking to return my debit card and cheque book...I took them into a branch and got receipt for them.
This week I got a letter saying I have to return card and cheque book and that if I don't make a satisfactory payment arrangements they will put me on bad credit list plus they will transfer the account to the debt recovery dept.
I first contacted them via CAB last September but they are pretending that they have not heard from me.
What is the best thing to do please???
Julie

zarazara

If you take a look at Worried About my Future thread theres loads of advice and templates for letters. A poster called Never in Doubt (NID) is brilliant at this sort of thing.
Good Luck

Tixy

Hi Julie

Can you remember if you sent the first letter with the budget sheet by recorded delivery?

What I would do is write another letter in response to the latest one to enclose the budget sheet again and to inform them that the items were returned to whichever branch on whatever date.

In the letter I would then again offer to pay a monthly repayment of whatever you can afford (if you can only afford £1 then offer that) and again ask them to freeze interest & charges. You might also explain why you cannot afford more (ie you business ceased trading and you have only been able to find parttime work).
They will default you formally (if they haven't done already) which will appear on your credit reports at the credit reference agencies (and will remain on there for 6years).

Do you have any other accounts with natwest? If so you need to move these elsewhere.
Does their letter actually say a 'bad credit list' as I do not believe there is such a thing. If they sell the debt on to a debt collector you would then need to write to just make the same monthly payment offer to the DCA.

Make sure you send this letter to natwest recorded delivery and make sure you keep a copy. There is little else you can do. They are very unlikely to take you to court for this amount of debt but even if they did you will simply need to prove to the judge that you are paying all you can afford each month.

Worried_one

Hi, thank you for your fast reply!!
The overdraft is 2000 not 200 so I think they may go to court?
The Personal budget and offer was sent by the CAB directly and the bank acknowledged receipt during a conversation with them and they said it was not enough and get someone in the family to pay it.
The letter doesn't say 'bad Credit list' just lists Callcredit, Equifax and Experian.
I am writing on behalf of my partner ...he seems to think he wants to get a loan to pay off the overdraft, but as I told him how the hell can he pay the loan costs???
Thanks again, Julie

Tixy

Hi

Getting a loan is a really bad idea. And pressuring him to borrow money from family (or anywhere else) is against the OFT guidelines for debt collection (unfair pressure). You could quote these in your response (i'll find some proper wording in a sec).

For £2000 it is possible they might decide to take him to court but still a judge should not order him to pay more than he can afford. What is the chance of him getting a full time job soon or a second part time job? Is £1 still the maximum he can afford.

Does he own a house? have you been through each item of expenditure to try to reduce it (eg checked you are with the cheapest suppliers for gas & elec, checked you have the best deal on telephone, mobile etc, cancelled any unnecessary items such as sky or gym membership etc).

He might consider posting up a statement of affairs on here for other people to see if they can spot any savings etc so he could offer slightly more to natwest each month - if he wants to this is the link/format - http://www.makesenseofcards.com/soacalc.html and people on here don't judge, just make suggestions.

Tixy

OFT guidelines

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

I would suggest they are possibly in breach of probably 2.5, 2.6b, and 2.6f - you could actually quote the specific guidelines to them in the next letter.

RobertoMoir

Worried_one wrote: »

I am writing on behalf of my partner ...he seems to think he wants to get a loan to pay off the overdraft, but as I told him how the hell can he pay the loan costs???
Thanks again, Julie

Please tell him not to get a loan. It's a bad idea all around. If you are already struggling financially it will be impossible to get hold of one, either at all or without paying an obscene amount of fees/interest. Also, it's trying to put out a fire by pouring petrol on it... never a good idea.

The banks will do their best to intimidate you on the phone. Always deal with them via writing and ignore all phone calls. Either they'll stop making empty threats that are in violation of their code or you will have written proof they're breaking the rules. Either way you'll feel better for it.

Worried_one

i,
Thank you so much for your replies,
I am having really big difficulty explaining to my partner that we can deal with this and it is not the end of the world but he is in panic mode and says he has to get a loan.
I will go to see CAB again tomorrow and also write recorded delivery to the bank outlining what we have tried to do and quote the OFT guidelines.
We rent privately, have a vehicle on HP which we need to carry on working and trying to find Full time jobs. only have usual house hold bills with no gym memberships or other 'nice' things that we can cut down on..


thanks again, Julie