Student in Trouble

CRCD

Hi,

I'm a student, but unfortunately have had to withdraw from my course on two occasions to receive medical treatment. I'm now fighting fit and getting ready to go back in September to finish my degree.
When I started university back in September 2006, I had a student account with NatWest, and then a few months later opened another with the Halifax. The NatWest account is overdrawn on the interest free student overdraft and in control, but I'm in trouble with the Halifax account.

I had an agreed overdraft of £2800, but went over this by around £5 at the end of last year without realizing, incurring charges of around £270 to date.

Since this time, Halifax have taken it upon themselves to change my account from a student account to a regular current account meaning I shall be incurring interest. They now want the full £3070 in full by the end of the month, or the account will go to their debt collectors and be stuck on my credit rating for 6 years. I have been receiving incapacity benefits this year (or ESA as its now called), and in October will be back to receiving a student loan totaling around £3500 a year, with a £2,900 grant I am entitled to due to my situation.

With being a student I don't have a great deal of money to splash around, and can't afford to pay back anything like this amount immediately.

Any advice on what my best course of action would be greatly appreciated as I am rapidly approaching the point of tearing my hair out.

Thanks

Rick

Hannah_10

First of all dispute the charges... You can dispute them on the groups of hardship on more than one point, so if you write to your branch manager you may well get lucky.

I did this last month, with success (to Halifax actually, as it happens). I started by reading this article...

http://www.moneysavingexpert.com/reclaim/bank-charges?dd

Then I wrote a letter outlining my case that I was in hardship at the time, which the bank could clearly see as my means-tested welfare benefits (not ESA but IS which is similar) are paid into this very account. As means tested benefits are the lowest amounts the law says it is even possible to live on then I was clearly already in Hardship. Further to that these are sickness relatated benefits, which I recieve because I have been very unwell, again the purpose of (IS/ESA) is common knowledge. And the third reason I should be considered as a hardship case is that my benefots were disrupted at the time the Halifax applied the overdraft. I then went on to say that the charges had caused me further hardship blah de blah... And I ended on "I would like Halifax to refund the fees please?"

Simples, bank manager called me a week later and said I've refunded them, they will soon show on your account. Then I got a letter saying how Hlaifax deny they did anything wrong, blah blah blah... And have your charges back.

I'm pretty sure your letter would be much the same style.

Then after the charges are off look at the rest of the debt and make a small repayment offer (£1 a month will be fine).