Default on loan

helpwithbank · 14 February 2011 at 4:51PM

Hi,

I could really do with some advice!! SO UPSET..
I had an overdraft facility with my bank for a number of years. This was ok while I was working, salary would payoff the overdraft every month. However, I got married and we setup a joint account and I no longer used this account to get my salary paid into. I would pay some money off this account each month. At end of Sept, I owed approx £1500.
Around that time I moved country to have a baby at home and when I got back to the UK last week I went to the bank to payoff the overdraft where I was informed that it was no longer their problem it was now with a debt collections agency.
I rang the agency straight away and settled the whole bill. They told me that they had just received the debt but it would be on my credit score for 6 years and there is nothing they could do about it!

Please, please, please can you tell me is there anything I can do?? I will not be able to get a job now as in my work they do the credit checks. I know it is my fault for leaving it get this far but I had planned to pay it in total as soon as I got back to the UK. I had no idea that it was going to go to the collections agency so quickly..

Thanks for reading this!!!
Any advice would be greatly appreciated.

jonjamie1970 · 14 February 2011 at 4:58PM

Hi, where was your post going during this time, they would have sent you a notice of default, if you failed to respond then they have the right to Default you on this account. You may be able to go down the route of asking them for proof of the letters etc but TBH it doesnt sound great.

The default will stay on your file for 6 years regardless of whether or not its settled and will affect the ability to gain credit during this time, I am in the last 18months of this myself and have had a tough time but used it to clear what I have so that I can come out the other side free of debt and ready to start again.

What line of work are you in ?

helpwithbank · 14 February 2011 at 6:13PM

Hi,

I work in banks!!! Not private ones though. I have paid everything now and I actually have 0 remaining debt. No cc outstanding payments, no late fees/payments for anything except this big one. I never received any letters as I was out of the country and have subsequently moved address. Really upset that I may not get another job now because of this and I had a great rating prior to this, now I have a very poor one for 6 years and potentially no future job. I cannot tell you how stressed I am.

helpwithbank · 14 February 2011 at 6:16PM

p.s..Good to hear that you are coming out of the other side debt free.

fozmcfc · 14 February 2011 at 7:44PM

Nothing much you can do,

About all you can do is get your credit reports and make sure at least the default is now shown as settled.

Overtime it will be less and less important and you will get some subprime credit products such as high APR cards, but nothing mainstream for the next 6 years.

I'm having trouble getting my head around what you exactly expected to happen. You work in the bank industry makes it even more bizzare.

jonjamie1970 · 15 February 2011 at 8:35AM

Obviously the banks take a view that if you can't manage your own money then you can't manage other peoples, I would try anyway, some banks etc may take different types of views. If you had your post forwarded then they would have sent you a request, overdrafts dont just go away, they have to be serviced.