Default on overdraft

hugsr

I have an old student account which I haven't used for several years. It has an overdraft of 1000 but there's been nothing going in or out of it. As far as I was concerned it was a dormant account which I'd planned to pay off one day etc etc.

I moved house in Nov 2010, and notified all the banks etc accordingly (I still have the letters saved to my computer). They didn't respond so I sent them a second letter then forgot all about it. I've never heard from them - even in the 6 following months when my mail was redirected I never heard from them at the old address either - not even with a statement. Yes, I'm stupid, I know; and if I could turn back time I'd hound them for a response - but I hold my hands up and say I'd forgotten about the account since then.

Anyway, I got a letter this morning from my main bank alerting me to a change in my credit report which has made them review my accounts - I got hooked up to Experian and see that this old account has defaulted because I haven't paid off the overdraft. As far as I'm concerned they've never requested payment, nor was I ever aware that payment was required because they haven't written to me. In my old documents I can't see anything relating to an agreement I'd made to pay it off by a certain date or anything like that. According to Experian the bank is still holding my old address so I suspect if they have written it's been to there (although as I say, I've received nothing through redirection).

I'm hurt! My credit score has always been perfect and all my other accounts managed to handle my change of address correctly. I don't feel that this bank have made adequate attempt to contact me - I'm on the electoral role so they could have found me. I'm able to pay it off stright away using a credit card I already have, but I don't want this default lingering over me for 6 years even after the balance is cleared.

Is disputing it likely to end up getting it removed? Do I have reasonable grounds to dispute?

Tixy

Being on the electoral roll is irrelevant - banks won't spend the effort to try to track someone down before issuing a default, or even after sometimes, they'll generally leave that type of tracing of debtors to debt collectors if the debt is ever sold on.

So your dispute needs to focus on the fact that you informed them of your new address.
If you could prove you'd informed them of your change of address then you shouldn't have an issue at all. But presumably you didn't send those letters recorded delivery so you chance will be slightly reduced.

You'll need to get in touch with the bank, inform them that you've never received any notification from them in relation to them recalling the overdraft or issuing a default notice with regards to the account.

I'd state that you have been informed by experian that the bank still have your old address according to experian's data and enclose copies of both your previous letters. Ask them to send you copies of any correspondance sent to you at the old address since Nov 2010.

You might also want to inform them that if they have recalled the overdraft you are in a position to repay the debt but feel that the default on your credit file is unfair as they have not kept your address details up to date.

You say you can pay it off straight away using a credit card - is it one of the cards that allows transfers to your current account? if not then you may well find you cannot pay it by your credit card.

hugsr

I didn't send them recorded; such was my haste to just send a shot of mail out to everyone I held an account with.

Ah, hadn't fully explored the credit card thing yet, but one way or another I will pay it off.

Thanks for your advice

Miss_Spendalot_2

To be honest though if you knew you had the debt then why, when you did not hear anything from them did you not contact them? It is not for them to try to track you down, you don't need to have a request for payment to know that you need to pay something.
I don't know anybody who truly forgets about a debt they owe.

This error of judgement has cost you dear and it is going to stay with you for quite some time, and now all of the hard work you have put into managing your other finances has been put into jeopardy.

You can try to dispute it but in my opinion there is no doubt in what you have said so far that You are at fault here, and there is no way that you are going to get away with any of the excuses for not paying that you have given so far, So unless you can think of something pretty believable then it is going to be on your report now for 6 years, settled or not.

hugsr

I've said I hold my hands up - I had no reason to think I should have been getting mail from them, or that they were still using my old address, until I got the letter yesterday from my other bank. How was I to know they would recall it? It's not like it was a credit card where you have to make regular payment.

chanz4

No its repayable on demand

Timay

chanz4 wrote: »

No its repayable on demand

But surely they haven't demanded it if they have not contacted the person?

Still stupid leaving an overdraft unpaid though when the account is dormant.

chanz4

They will of had to of sent a default notice out, something tells me he didnt really try hard to update his address

hugsr

Moral judgements are really unhelpful. What I'm asking is;

**what constitutes a reasonable attempt by them to contact me?**

For instance, as well as the address thing, my phone numbers have never changed but they've never called me.

The account was not bank-technically dormant, it was just unused for a while therefore I thought there was nothing going on with it. And I didn't forget the account/balance as a whole, what I'd forgotten was to chase it up. But having written to them twice (possibly 3 times but I can't find a copy of the third letter) I feel I did make effort, and more than the usual level of effort required to change an address. Obviously they didn't update it and I KNOW that NOW, but write to them I did.

Also, not forgetting I received nothing through mail redirection from them. Lastly, lack of post from them was not an indicator because there was nothing going on with the account and I wasn't receiving regular mail from them even before the change of address.

It's no good having a bash at me because it doesn't answer the question or help in any way. I know what the situation is!

woofy85

hugsr, if you don't mind me asking when was the last time you made a payment on this old account?

DevCoder

Normal practise (depending on what sector the bank is in) is to class anything over 12 month (since last inward/outward payment) as Dormant (which automatically imposes increased monitoring of the account for transactions in/out) and after 2 years as Escheat (i.e. to fall out of possession) which adds still further safeguards.