Paying off debt but being forced to increase payment..

whispywillow

I wonder if anyone can offer me some advice!

Basically, when I was a student I maxed out a bank account - lived off cheques and spent my wages on booze, the usual. I have been paying back the bank (Natwest) for around 3 years now. The original rate that i was paying was £9 a fortnight, as i was only working 16 hours a week doing bar work. I eventually had to go on benefits due to a long term health problem and i was unfit to work (and still am), but they asked me to increase the payments to £11 a fortnight, and even though I told them I couldn't afford too because I was only on incapacity benefit, I felt forced into raising it. Since then they have been steadily calling and calling and asking me to increase the payments, and I am paying them back now £20 a fortnight, and I just can't afford it. I have explained to them that I am on incapacity benefit for quite serious bi-polar disorder, and I also have a young son now as well.
The most recent phone calls I have been getting from them have been rather threatening, I have explained to them that I can't afford to pay any more than I am paying already, in fact I could do with reducing the payment as I struggle to make ends meet, but they basically say that because I am getting extra money in the form of child tax credits and child support, I should increase my payments out of that money - but it doesnt work like that, i need that money to buy basic provisions for my son! Nappies arent free! They have basically said that they are going to call me every day now until I provide them with a detailed breakdown of my incoming and outgoing - are they allowed to do this?
I am getting very stressed and unhappy now, I really feel they are beginning to verge on the point of harrasment..

Is there anything I can do??

Jinx

You need to communicate with them in writing.

Work out how much you can afford to pay them and tell them this in writing, you can give them your statement of affairs if this will help. Tell them you will only communicate in writing and send the letter recorded delivery. Start making the payment (recurring online is good as they cant change it and you cant forget) and stick to your suggestion.

When they call either ignore it or dont answer the security questions. If it gets too much do a letter re harassment and report them - do a search on here for the letter telling them not to call you anymore. Or some phone providers will change your number if you are being harassed for free, if that doesnt cause you too much hassle.

Natwest will not be happy if you dont pay as much as they want - thats tough, pay what you can, they cant get more and its not illegal to be skint and trying to pay.

barbiedoll

Send them a copy of this letter....

http://forums.moneysavingexpert.com/showpost.html?p=11571485&postcount=4

(Make sure that you read the whole post, there is a good bit at the end about getting them to remove your telephone numbers from their system)

Send it by recorded delivery and keep a copy. Don't speak to them on the phone any longer, as you have found out, they will sense that you are vunerable and scared and they will bully you into paying more than you can afford.

If you are on benefits, you should only be paying a "token payment" anyway, £1.00 per month will do. You don't have to provide them with an income and expenditure form if you don't want to, although it may help your case if you do. BUT....they don't have any legal right to this information, so don't feel as though you have to provide it. You could send them a letter to prove that you are receiving benefits, again, keep a copy of any correspondance that you send/receive. Make sure that you blank out all details such as your NI number, they don't need to have that!

Write them a separate letter stating that you cannot afford any more than a token payment, send a cheque/postal order with the letter and make sure that you pay them regularly. I assume that you now have a different bank account? If so, don't give them any debit card or bank account details, tell them that you can pay by standing order or cheque/postal order only.

Don't be bullied by these people, if you cannot pay, they will just have to wait. They have absolutely no right to tell you to pay them from your tax credits! :mad: Do let us know if you need any more help, and good luck!

whispywillow

Thanks for your advice guys, very much appreciated - i've felt like im at my wits end with them. WIll have a read of the post now and take some serious notes for when they ring me tomorrow!! This has made me feel much more confident about dealing with this matter

BigCraigJohn

You might find they are more reasonable than expected. I was shocked at my treatment with Lloyds, theyve frozen my overdraft for 12 months on condition I pay something towards it once a month whether a pound or 100.
I think banks are going to change the way they deal with this sort of thing ie treat each customer on there merit not on there own rule book. Been a lot in the media about how banks treat customer and the fact is banks are going to have to treat customers better or they are going to pay.