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No way out....

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  • izools
    izools Posts: 7,513 Forumite
    1,000 Posts Combo Breaker
    edited 1 February 2011 at 2:23PM
    Neko-

    Have you checked your credit files with EQ, EX, and CC, to ensure that:

    1. The Bankruptcy order is marked as "Discharged" with a discharged date?
    2. All of the prior defaults show a default date on or prior to the date of Bankruptcy?
    3. All of the prior defaults / accounts show as settled with a NIL balance on or prior to the date of discharge?
    4. Any CCJs that were part of the BR are marked as Satisfied on or prior to the date of discharge?

    I had to write to all the creditors and credit reference agencies to have these things corrected, as it was all wrong.

    You should do the same, then you will be more credit worthy.

    Also, banks don't upgrade basic accounts. You need to apply to another bank as a new customer for a full account once you've completed all the post bankruptcy clean up work to tick off the four points above :o

    Finally, taking out a SIM Only contract is easier as the pass mark is lower. You can then upgrade as an existing customer to a full contract with free phone without being subject to another credit check ;)

    Good luck! :beer:
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • Rochdale_Guy
    Rochdale_Guy Posts: 1,710 Forumite
    edited 2 February 2011 at 10:32AM
    OMG.

    Just checked my online banking and my bank has cut my £200 interest free overdraft down to £100 :(

    I'll be £92 overdrawn by the end of the week.

    This is not happening..... that has to last me until I get paid on the 15th Feb.
    .
  • ... plus I'll owe £72 rent for the week commencing Monday 7th Feb.
    .
  • yenool
    yenool Posts: 169 Forumite
    ... plus I'll owe £72 rent for the week commencing Monday 7th Feb.

    You have to get your income paid into a new basic bank account from next payday. You cannot afford to be having all your salary swallowed up by interest and D/D payments to credit cards.

    As I said before you are basically past the point of no return; what you need to do now is avoid ending up in a situation where you have absolutely no cash to pay for essentials like food/travel to work/rent/gas/electric etc etc.

    At the moment you are just adding to your debt by living off the cards, at least if you default or go through the CCCS the debts will stop growing as you will be able to reduce payments and live within your means.
  • Wootball
    Wootball Posts: 368 Forumite
    ... plus I'll owe £72 rent for the week commencing Monday 7th Feb.

    So why haven't you done anything about your situation yet? There isn't much more this thread can do for you, you've been given the solution but it's not going to come without a few years of hard graft.
    Whatever doesn't kill me, can only make me stronger.
  • Wootball wrote: »
    So why haven't you done anything about your situation yet? There isn't much more this thread can do for you, you've been given the solution but it's not going to come without a few years of hard graft.

    Thanks for the harsh, but needed words Wootball. I'm not giving up just yet....
    .
  • Rochdale_Guy
    Rochdale_Guy Posts: 1,710 Forumite
    edited 4 February 2011 at 12:57PM
    yenool wrote: »
    You have to get your income paid into a new basic bank account from next payday. You cannot afford to be having all your salary swallowed up by interest and D/D payments to credit cards.

    As I said before you are basically past the point of no return; what you need to do now is avoid ending up in a situation where you have absolutely no cash to pay for essentials like food/travel to work/rent/gas/electric etc etc.

    At the moment you are just adding to your debt by living off the cards, at least if you default or go through the CCCS the debts will stop growing as you will be able to reduce payments and live within your means.

    Thanks yenool.

    Exellent points, as are all the other responses to this thread I made.

    How can I get my monthly salary paid into a new basic bank account without this being a major headache. I pay for everything by Direct Debit exept my council flat rent. If things start bouncing then all I can see is a brick wall of trouble (not that I'm not in any anyway). I do realise that I should be paying my flat rent as a priority over the credit cards, it's just like I said, all the cards are paid (minimum amount) by D/D each month. God, if I'd have put my flat rent on monthly D/D then I would have nothing left to eat / drink with, hence being a bit slack and a little week or two behind with the rent. Shocking I know :(

    I can't just cancel any of the card D/Debits, although I'd love to with the uncaring MBNA. I have never missed any credit card or loan payment in my entire life. Even if they are for the minimum monthly repayments. I really don't want to start now, although I do realise I am in a terrible pickle, maybe it's time I started and took your advice re: new bank account.

    I shall stupidly suffer until next pay day on the 15th, then reluctantly admit defeat...

    Not that there is any light coming my way in this deepening tunnel but I checked with the bank and I do still have a £200 fee free overdraft, there was an error.

    :undecided:wall:
    .
  • You have two options. Izools is spot on. Why haven't you gone down one of those roads yet? It's not only good advice, it's the only advice. And you'll feel so much better for doing it.
  • Tiddlywinks
    Tiddlywinks Posts: 5,777 Forumite
    I've been Money Tipped!
    Did I see that you work for the local council? Are you in the union? Most unions have debt advice and legal advice lines... could you access these?

    One important thing to think about as a public sector worker is how insolvency might impact on your job - in some posts / roles where handling money or in positions of trust (care workers etc) you have to declare any financial difficulties. Will this apply to you? If so, then definitely talk with the union (if you're not a member then try joining - more expense, I know).

    Take a day off work and dedicate it to making calls and sorting this out - you can't make calls at work so you need to take the time out otherwise you will never get to speak to the right people.

    Have you anything you can sell on e-bay? Could you get a bar job or shelf stacking part time work? You get free meals when working shifts at some fast food outlets. A friend of mine worked some evening shifts in a chippy to make extra money and the staff were allowed to take home any leftover cooked food - she always had sausage sarnies or pies for her lunch the next day ;).

    The bottom line regarding your budget is that there is too much going out compared to what comes in so something needs to change - you need to earn more or spend less... simple for me to say, I know.

    Good luck.
    :hello:
  • Pheebs67
    Pheebs67 Posts: 70 Forumite
    Part of the Furniture Combo Breaker
    ILW, it isn't that easy. MBNA are terrible. I owed £8,700 on an MBNA card (minimum payments £196 pcm) and I phoned up two years ago to pay £4,700 off it. The woman I spoke with said that the interest rate was 'ridiculously high' so once the £4,700 had claered they would look to reduce the rate. Nothing happened.

    Each time I phoned up to ask then to reduce the rate I was put on hold for upto 1hr 40 mins at one stage so naturally had to hang up. I wrote a letter and the wrote back stating that I had to phone them up, so I did, and after 1hr 20mins I hung up.

    What they did do however, straight away, is increase the interest rate so on a balance 45% lower at £4,000 I was still paying a minimum of £196 pcm! I thought paying off £4,700 would reduce the minimum payment, not increase it.

    Anyway, 28 months ago my balance was £4,000 (I haven't used the card in five years) and for the last 28 months alone I have paid MBNA a total of £5,488 and my balance is still.....£4,000.

    You try to pay them off but they have got you. I can't go elsewhere due to my credit rating.

    Above shuffles seem sound advice to me.

    In Addition though, under today's regulations, I'm pretty sure the above scenario is either breaking guidelines or at the very least goes against the spirit of the TCF principals.

    If you've kept within the terms of your agreement (no missed payments etc) and paid £5,488 over 28 months and still have the same level of debt, then the product you've got doesn't meet the standards expected of credit products in terms of negative amortisation. In making minimum payments, it should be impossible to not reduce your overall debt.

    I'd complain about this scenario to MBNA's complaints department in writing, citing the TCF principals that "customers should be provided with products that perform as they are led to expect, and receive an acceptable standard of service" and state that you plan on referring your complaint further to the FOS.

    If you don't ask you don't get right?

    Good luck with the shuffling.
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