Debt Collecting agency have stopped taking Direct Debit

liv28

I'm hoping someone can advise me on the following situation..

I took out a Natwest loan about 8 years ago that I was meant to pay off over 7 years. I didn't default on it at all for the first 3.5 years but then lost my job (I was living and working abroad). I contacted Natwest numerous times by phone and letter explaining to them that there was no way I could continue paying back the loan at the same rate but they point blank refused to negotiate so I after a few months I became overdrawn on the account and so the direct debit to them wouldn't go through anymore.
They passed on the debt to another company and I came to an agreement with them that for the time being (this was about 2 years ago) I would pay back a lower amount per month and set up a direct debit to them for this amount. The problem is that I have just come back from abroad and seen that for the last 6 months the money that has been going out to them has been coming straight back to me after a day or two. I am now actually in a position that I could pay back more each month but my question is weather I should negotiate this with Natwest or through the debt collectors?
I basically want to do whatever it takes or is best to improve my credit rating as at them moment I am not even able to open a current account with a high street bank.

Thanks,
liv

Tixy

Hi Liv

What was the name of the debt collection company (it may be that it has gone into liquidation or changed its name). I assume you are certain that you hadn't paid off whole amount by then?

Are you sure it was a direct debit rather than a standing order? a direct debit is actually requested each month by the creditor so should only 'come back' if your payment has bounced due to insufficent funds. Whereas a standing order is sent from your account, so would come back if it couldn't reach its target.

As to a high street account providing you can prove your identity then you should be able to open a basic bank account with any bank (though do choose one with a bank you don't already owe money to) - here is a list of all the different basic accounts and the facilities they have (on page 5) http://www.moneymadeclear.org.uk/pdfs/bank_accounts.pdf
Make sure you specifically request a basic account.

Its probably also a good idea to check your credit file (with experian/equifax) as that might show who owns the debt now and will also show what has been recorded so far on your file.

liv28

Hi Tixy,

Thankyou for your reply. I found out the name of the company is Intrum Justitia and that it was a standing order not direct debit. I found out that the reason the money is not going through is because the beneficiary account is closed.
I followed your advice and was able to open a basic account with another bank. I also checked my credit rating on the site you suggested. The only information it shows regarding the loan is that I was paying it off and then it went into default for 3 months and then it is blank so there is no record of the fact that for the last 2 years I have been paying at least part of it off to Intrum Justitia. This worries me as even if I am able to pay off the rest of the loan back at the higher rate will there be no record of this on my credit report? I phoned Natwest and asked if there was anyway the loan could be passed back to them and they said no.