Advice needed!

Tundun

I ran into financial problems from early 2010- mid 2011 as a result of ill-health and was out of work. As a result, defaulted on my credit card monthly repayments and overdraft until eventually, these accounts were closed (late 2010). The cc account was passed to the debts collector, however following the closure of my current account, some money was paid into the account which HSBC used to recover their overdraft and sent me a cheque with the balance since the account had been closed. I have tried several times since then to no avail to open a new current account (with NatWest since I had a savings account with them from 2006 which I had to resurrect). My last attempt at this was in November 2011. I haven't attempted with another bank and I have been using my NatWest savings account and still use this as a salary account which isn't counting towards my credit history.

In a bid to resolve this and be able to open a current account and re-build my credit history, I registered with Equifax and monitor my credit report frequently (this default is stated on my report). I enrolled on the electoral role and applied for a Capital One credit card which was approved Feb this year. I also contacted HSBC who advised that they cannot open a new account for a customer with an outstanding balance on a previous account. I then contacted MCS January this year informing of my willingness to pay off the outstanding balance on the account (£2915.81). I also requested a pay-for delete letter to which I got no response. Few weeks after I contacted MCS, I received a letter from WESCOT informing me that they are working on behalf of MCS regarding this debt. Early this week, I received a second letter from Nelson Guest and Partner Solicitors (I believe they are WESCOT's in-house solicitors) with an offer to reduce the amount payable on the debt by 40% (1749.49). I have been reading several debt forums online to establish what the impact of a partial payment might have on my credit report. Is any one able to provide me with advice on how to go about resolving this issue please? Your assistance with this is very much appreciated. Also any advice on how I can go about opening a bank account that would count towards my credit history?

Many thanks in advance!

endora

Even if they accepted you, it would be very unwise to open an account with a bank where you have an outstanding balance as they can set off by taking money from your new account.

However frequently you monitor your credit report, defaults remain for 6 years.

Nelson Guest are letterheads for rent for Wescot. If they are offering such generous discount it must be because the debt is unenforceable or loaded with reclaimable charges and PPI. Have you sent a CCA request?

piglet39

Hi Tundon

Can't advise on other banks but I do have 3 accounts with Natwest. First a standard current a/c, 2nd a basic (was called Step) a/c and a First Reserve. The Basic account is reported on my credit files along with the standard current a/c, First Reserve is not reported. Have you asked for a Basic account? Reason for asking is that it seems to be the case that you need to be specific when approaching a bank about the fact that you want a basic bank account, otherwise they just seem to credit score you for a full account and then decline.

Re partially settled defaults - others more knowledgeable will advise but a default - partially settled or not still has an impact for 6 years.

HTH

Piglet x

MusicalLawyer

I have a basic account with NatWest - that is on my credit file, showing little green markers each month, helping my credit rating.

Not sure about other banks.

Tundun

Thanks for all for the advice. Can you please tell me more about a CCA, what it entails and how I can request one.

I would also explore the possibility of opening a basic account such as the Natwest STEP account today. Am I right in assuming that this account does not require a credit check?