overdraft and token payment-update and more advice Please

daraya

has anybody offered token payment to their bank? How long did it take to have your payment accepted and interest stopped? does anybody have any experience?

bottleofred

Hi Daraya,

I changed Bank Accounts initially and then was subjected to the usual charges and interest for a while. However, I agreed a repayment amount of £50 per month and the interest and charges were then stopped. I owed almost £2500, but got it paid off in the end.

daraya

I received letter from them today. They are not accepting payment ("offer is insufficient to repay debt over term acceptable to bank") and they will be transferring my account to their credit management services....That will take approx 6 week and interest will not be stopped...

My overdraft is small, about 400 and interest is about £6. Now there is £1.5 available...I have next interest coming on 26th of May.
What shall I do? Shall i just let it go so i go over the overdraft limit with £6/a day charge until good knows how long or shall i find somewhere some money and pay them there to cover interest? Going over overdraft limit will add a lot to that overdraft debt...Please give me some advices...

CH27

Do you still have money going nto the account?
If so open a new basic bank account at a different bank.

daraya

No I am not using it. We have already opened joined account in another bank.

cc4rhu

Personally daraya I think that the only thing consistent about lenders is their inconsistency. In my situation for an overdraft of about £1500 they accepted payments of £3 virtually immediately. If I was in your position I would think about a DMP or whatever is more appropriate for your situation. Even if charges are applied for going over your limit if you can get interest frozen over the long term when payments are agreed you may be better off. I certainly was with a credit card and have saved a lot of money compared to the APR I should have been paying.

creditcrazy

Hi,Hope u dont mind,can I just jump in here to ask a quick question??This sounds silly but how do you make your bank a token payment,I have a loan and has always been paid by DD so not sure how to do this as starting dmp,any help would be great as I am still so confused!!Thanks

eyeopener2

creditcrazy wrote: »

Hi,Hope u dont mind,can I just jump in here to ask a quick question??This sounds silly but how do you make your bank a token payment,I have a loan and has always been paid by DD so not sure how to do this as starting dmp,any help would be great as I am still so confused!!Thanks

Stop your direct debit and send a postal order for your token. £1, £2, or whatever.

Your DMP provider (Hopefully CCCS or Payplan or CAP) will give you letters to send to your creditors with the payment.

Good luck and don't worry.

creditcrazy

Thanks for that eyeopener.I know you said postal order but isnt there a fee for that?Can I use a normal cheque from a different safe bank account or not and what about Credit cards?I normally pay them online,can I make token payments online or better to post postal order or cheque for them too?Sorry for all the questions,just so new to it all,its mushing my brain!!

Triggles

We had an overdraft with Santander and had set up an agreed amount (£50 per month on a £2000 overdraft), and they agreed and stopped interest and charges (in writing). Then after we paid faithfully for about 9 months, (even though we'd agreed to review it in a year), they suddenly closed the account, refused to take our payment and sent it to a collection agency, without even advising us. First we got payment refused, then a letter from DCA saying they had account, then when we contacted Santander they said "oh yes, we closed your account and sent it to DCA" ... I kicked off a bit and pointed out that it was poor form to do so when we had an active agreement in place that we were paying without any problems. But that's fine, as the DCA has been quite reasonable, accepted £25 per month which we've been paying and cleared us £25 per month to put towards debts that DID have interest and charges on them. So worked out in our favour anyway. (still annoying, but Santander has done a number of dodgy things with a couple of our accounts - credit cards and such - so I'm not surprised I suppose)

As the overdraft for some reason is in DH's name wtih the DCA, we initially paid with cheques from my account. However, they have given us a card to use so that we can simply go into the post office or any paypoint place and pay cash (still gives us receipt), which is even easier and no fees.