Natwest business account overdraft

ANGELB

Our business closed 31 Oct 2010. We have had overdraft insurance on the NW business account for 15 years. Couldn't find the policy but been told that it only covered accident and sickness. I took the policy out and strongly remember the assistant manager say it covered unemployment and also remember seeing the policy to confirm this but only if it was due to certain circumstances - not giving up work by choice. Also I have tried to contact our business manager and she is currently on long term sick. Made an appointment to see another manager but was contacted on the day of the meeting to say she too had gone off sick and no one else could see me at my local branch. They gave me a business number to ring to discuss my problem. The problem being a £12k overdraft with interest. I was advised to consider a personal loan. This we don't want to do as we have some assets to sell mainly our static caravan, a folding camper and my motorbike! This should just about do it, but what would be the best thing to do? My husband has a balance of £5k on a credit card we could use to cover some of the overdraft and bring the interest down. It's such a mess really. We are luckily both in employment and I have been paying some into the overdraft to try and reduce it. Has it been known for the banks to 'freeze' interest? Any help would be great.

jonesMUFCforever

Was the business a sole trader partnership or Limited company?
Why did it close down?

If you are not happy to discuss this over the telephone insist on another appointment with a business manager.

ANGELB

My husband and I were partners. Basically it was a parcel delivery business with a large firm that had been taken over by another large parcel delivery firm and problems set in. My husband had a sprinter van and did same day deliveries for 26 years. We hadn't had a rise for 3 years and the company were finishing vans and therefore those still there were doing more and more mileage. They wanted us to put another new van on as ours was 4 years old, for the same money! We refused and therefore they started to mess us about with knocking us off on Mondays then two days and sometimes for a full week plus they also extended our pay by an extra 4 weeks meaning we had to wait 8 weeks for our money. It just got too much and we decided to finish before our overdraft increased further. I've work as a school business manager and my husband is now working as an employed driver. It's difficult for me to get any time off apart from term time.

jonesMUFCforever

What has happened to the van - could that be sold to reduce the debt.

Could you afford a loan for the difference as I cannot see the bank writing the debt off.

ANGELB

We sold the van for £3k as the insurance was up in December (we did try to secure other work for it, unsuccessfully). My husband managed to find another job after being out of work since August and needed a car to get to work which is a 32 mile round trip. He managed to find one for £2K so we do have the £1k remaining. I have been on the creditcard post on this site to look at money transfers to the business account. Really don't want a full blown personal loan round our neck for 5 years. If we are successful in selling our assets then we can clear the cards in full without any early payment fines!

themull1

Have you asked for a copy of the insurance policy from the Bank?

ANGELB

I'm waiting for a copy from the insurance company. At the moment I'm paying £100 per week when I can afford it to try and bring the overdraft/interest down. It's going to be difficult.