Bank demanding £1800, no way to pay it at all.

innes_2

I'll try to keep this short:

I started my course in January 2009, at the time I had a son who was 16 and was classed as a single parent. I got an NHS bursary of £750 a month which just about covered all costs.

Now we jump ahead to July 2010. My son turns 18 and now doesn't exist anymore as far as the NHS are concerned. My bursary was cut to £410, considering my rent alone is £400, you can see where the problems began.
My son is at university and so he is getting his grant and loan and had been able to help me this far, but in a phone call from the bank yesterday I have been informed that my overdraft has been revoked and I have to pay back £1800 or they will be taking it further.

I've just been on the phone to them for the best part of an hour to be told I never had a student account and that all I can do is cancel some direct debits, I only have 3 Bt, car insurance and mobile.
I don't know what to do, I can't get the money from anywhere.

How can the do this? It's so unfair. I qualify in June, and I would be able to pay it all back within 2 weeks with the money I would be earning, by the bank doesn't care. And to top it all off my mum has just been diagnosed with terminal cancer. I really don't know what I can do now, apart from just quitting the course and wasting the past 2 years of my life.

Any sensible advice is welcome. And I don't care if my grammar or spelling is atrocious I'm not really in the mood to check it.

Well so much for short.

vaporate

Hi,

The bank can call in any overdraft at any time on demand. They cant make you pay on the day, usually 4 weeks notice to pay or else is given. I had my overdraft facility taken away for this reason alone to stop being screwed at a later date.

Needless to say they cant make you pay anyway, whether you have it or not. Worst that could happen is CCJ against you. Unfair I know.

Don't quit your course, whether its a struggle or not, specially for bank scum.

You should check to see if you are entitled to any benefits first entitledto.co.uk not sure if that web address is correct, hopefully someone can direct you to some template letters regarding fighting the overdraft demand too.

Edit: Yes also have all, if any, future payments into a new account that is separate from your bank institution. If you bank with Natwest don't obviously go to RBS bank. I know you know this but hey.

stclair

The best way forward would be for you to open another bank account else where to have any money paid into etc.

Then set up a payment plan with the bank to repay any money you owe.

The problem with overdrafts is that they are repayable on demand im sorry to say.

dmg24

It is not unfair, you should have been aware of the change in bursary from when you started the course and planned ahead. With regard to your overdraft, arrange a repayment plan for it and open a basic Post Office account for day to day spending.

vaporate

dmg24 wrote: »

It is not unfair, you should have been aware of the change in bursary from when you started the course and planned ahead. With regard to your overdraft, arrange a repayment plan for it and open a basic Post Office account for day to day spending.

Being denied some form of payment arrangement most certainly is.

innes_2

dmg24 wrote: »

It is not unfair, you should have been aware of the change in bursary from when you started the course and planned ahead. With regard to your overdraft, arrange a repayment plan for it and open a basic Post Office account for day to day spending.

I'm sorry, it's not unfair?

When i started this course, they said you apply now for your bursary, and the amount you get now is the same for the 3 years you're on this course. But half way through the course the NHS decided to change the way they fund everyone, so we all had to apply again, but when we had to apply again my son was 18.

I did plan ahead, but what often happens when you plan ahead is that things go tits up, and this was one of those times.

Don't tell me it is not unfair.

And do you not think I've tried this with the bank, they don't want to know, they just want their money.

chambta

dmg24 wrote: »

It is not unfair, you should have been aware of the change in bursary from when you started the course and planned ahead. With regard to your overdraft, arrange a repayment plan for it and open a basic Post Office account for day to day spending.

A Post Office account only accepts benefits in unless you know something I don't.......

gizmo111

Carry on with your course, change banks and when you get a job pay the overdraft off. It may cloud your credit report for a while but getting that qualification should be the most important thing right now.

Good Luck with course and bank.

coolesticeking

They can try and demand it in full, but how many people have the cash to do just that?

They should allow you to set up a repayment plan to get this paid off - Make sure you know fully your income and outgoings so they can take this into account and ensure you are not paying more than you can afford.

As others have said, best open a new bank account ASAP otherwise any money that goes into this account will just simply be swallowed up!

Hope things get sorted for you..

Chadsman

What course is it you are doing?
Is it a course that usually qualifies its students to open a student account? If it is then ask the bank to change your account to a student account. If the bank refuses to do so ask why they are refusing.
Good luck!

pinkdalek

Change your bank account and have your monies paid there so they do not get "swallowed" by your current debt.

Arrange a repayment plan with the existing bank to reduce the overdraft by £x each month, the amount should be a reasonable amount that you can afford each month. You will need to complete an income/expenditure form showing your priority debts - rent/utility bills/council tax/food.

You will find that the bank adheres to a banking code of standard practice and is obliged to treat you sympathetically and fairly when experiencing financial difficulties.

The other advice is visit the CCCS website - consumer credit council service for free advice.

Once an arrangement is in force and you make regular payments you will be fine.