advice on bank debt problems.

downandout!

I have opened this thread in aid of my young brother in law who is not on the internet.

The problem is he has over £800 worth of debt on his "old" bank account. He says his mum started a direct debit on his account a few years ago for her tv liscence. He claims he never knew about this and got a letter in detailing charges he would incur. He was only 18 at the time and thought he could ignore it but it has only grown (silly, i know). Trouble is he is now in a relationship and thinking about looking for a house with his Mrs. He has no bank account now and has asked me what i think is the best way to begin eradicating the debt.

Advice anyone.

J

robnye

get him to contact the bank.....

get him to get his credit record... £2 a time for experian and others, this will indicate whether the bank debt has been registered

Conor_3

If he has got it registered against him then its not necessarily the end of the world regarding a mortgage. Usually one "minor" debt isn't going to make much of a difference.

If he has the money available, it would be worth his effort going and negociating with the bank to get the debt down. As it is all bank charges, they can be quite flexible on this. A good starting point would be to offer to pay 50p in the £1 in full and final settlement of the debt and to pay it immediately. In other words, he would be offering to pay £400 to clear the debt there and then on the spot.

Once this has been done then give it a few weeks and get copies of his credit file from Experian and Equifax to ensure the bank has reported the debt as "Satisfied". If this hasn't been done then use the credit reference agencies own procedures to get the record amended.