Overdraft repayment issue

rmcgeown

Back in March 2010 i reached an arangement with all 6 of my creditors, which include 2 overdrafts, to repay an affordable amount each month.

The largest overdraft with Abbey National (now santander) is around £2500. I had paid my regular installments and until now all has been fine. I check the account last month and was hit by lots of charges and high interest, which had previously been suspended.

Calling Abbey they inform me that now that the overdraft was within authorised limit they can not have an agreement on it, therefore i will be charged fees and interest.

This has undone several months payments and means the OD will soon be unauthorised again.

I explained this to them and they said if i paid it off, the interest would be lower. Der.

I asked if the account could be made unauthorised so that i could reach an agreement, but they said this was not possible.

My question is, how can i sort this out? I am repaying on all creditors, but it is low amounts. all other creditors have accepted and are holding to the agreements.

Thanks for your help

GeorgeUK

Have you received a default on the account?
If so then they should not be able to just reset the agreement - there was a breach and they actioned a legal document to be sent.

If there is no default, then i would stop wating time on the phone and put a letter to them requesting that you come to a payment agreement, withholding charges and interest - even if you fall within the overdraft limit.

rmcgeown

I havent received a default.

GeorgeUK

Put your request for a payment agreement in writing and inform them of the previous arrangement. It is best to put all things like this in writing rather than over the phone.

Are you making that agreements yourself, or are you using one of the free debt charities such as Payplan or CCCS to do this for you? ome organisations prefer to have them involved so they are assured of getting an even split of the available funds.