Bank Account was closed a couple of years ago...

Spook4King

Hey all, bit of a problem and was just looking to get some advice. It is a little complicated though.

Basically about 4 years ago me and some friends moved into a house together - it was the first time I had moved into somewhere. Halifax had recently given me what I guess was a "normal" account and had set up an £100 overdraft on it in addition to the Cardcash account I had with them since I was 13. I never stopped using the cardcash account and left all of my earnings in there, I just had the other card.

Shorty afterwards I applied for a mobile contract which was later denied - I did not understand why so signed up for the Experian trial with one catch - my old card couldn't be used, so I had to use the normal account that Halifax gave me.

We moved out of the house following a lot of problems with the landlord, and stupidly I forgot to cancel the experian trial. I had changed the address for my cardcash account to my new property, but not the new account thinking that it would automatically update being as they are all under my name. Turns out I was very wrong.

I only recently discovered the debt - its nearly been four years. I only found out because I queried why I hadn't received the bill for the other account when my cardcash account card was eaten by a rogue ATM and they told me that I had gone over my overdraft limit, they had contacted me several times requesting payment and as such about a year ago the account was removed and the debt was passed on to a debt collector. I was so shocked that I just said "that isn't right" and walked away.

My questions are these you crazy experts - what the hell should I do?

I haven't at any point acknowledged that debt, and had they written to me I would have got into contact with them to sort it out. I haven't had one letter from Halifax or from the debt company it was passed onto; and from what I've read the best thing I can do now is ignore it for another 2 years and then I can get it written off when they do eventually contact me.

And finally, what about my bank? Is this going to prevent me from ever getting a proper bank account again? Will this affect my mortgage and such later in life!? I figured my credit would have been busted this whole time, but I passed Virgin Media's credit check about 2 years ago and have had that account without even a late payment and my mobile contract for 2 years (with a new one renewing now).

Any help would be very much appreciated

property.advert

Not so easy my friend.

You may find that this is all over your credit file - you should check - or it may not be. I know that Nationwide were at one point not referring data to the reference agencies so perhaps for some account Halifax were not either. It could also be that Virgin used an agency which Halifax did not use.

As to the 6 years, that is from date of default but they could just as easy go for a CCJ any time in the next 2 years which which would start a new 6 year clock running !

You know the amount to be small and thus manageable. I would pull records from all 3 agencies and if there is nothing there, get it paid off ASAP, perhaps with a % reduction if you negotiate.

If there is something there, still pay it off and put a notice of correction on your file. As the amount is small, many lenders will or can ignore it after a while with no repetition.

Spook4King

property.advert wrote: »

Not so easy my friend.

You may find that this is all over your credit file - you should check - or it may not be. I know that Nationwide were at one point not referring data to the reference agencies so perhaps for some account Halifax were not either. It could also be that Virgin used an agency which Halifax did not use.

As to the 6 years, that is from date of default but they could just as easy go for a CCJ any time in the next 2 years which which would start a new 6 year clock running !

You know the amount to be small and thus manageable. I would pull records from all 3 agencies and if there is nothing there, get it paid off ASAP, perhaps with a % reduction if you negotiate.

If there is something there, still pay it off and put a notice of correction on your file. As the amount is small, many lenders will or can ignore it after a while with no repetition.

It is about £400 but whilst manageable I fail to see how they can physically charge me that much in overdraft fees before realising that the account isn't active and then stop it.

One of my friends studying finance said that it is extremely unlikely that they will get a CCJ over £400 but I'd rather not get one of those against my name.

Does anybody know what becomes of my banking itself? Will I not actually be able to ever get a current account again, or just with Halifax or..I really don't know...

Hanky_Panky

Your friend needs to go back to college !

calypso_rhapsody

If it were me, i would seek to negotiate, first with Experien and then with the bank. Clearly you've made a mistake and you are strictly liable but just possibly a sob story will lead to at least some discount? You may also be able to persuade the bank that they should have changed the address on the account and that had htey done so then there would not have been so many charges .... good luck!

Personally i would not take the risk of having this turn into a black mark on my credit history - sounds as if you are young and starting out in life so you really do not want to make, for example, getting a mortgage at sometime in the future either impossible or expensive.

Spook4King

It was my understanding that as the debt has been passed onto a debt collector it is no longer anything to do with the bank..is that true?

And my friend is still in college :P hence why I came to you lot for help.

Thankyou for all the help and advice so far guys!