Halifax - O/D + Charges. Defaulted account and closure.

PhilAres

Hi guys, first time posting here.

I've read through all the guides and they sound fantastic but I think I'm in a unique situation as I can't speak to anyone who I owe my debt to.

I'm turning my financial situation right around with me getting a great new job and paying all of my debts off it's just this one is lingering.

Long story short - foolish 18 year old fell for the typical marketing stuff and got waist deep in bad credit: catalogues, over drafts and an expensive car on payments. I was banking with Halifax at the time (2007) and went over my overdraft (I cant remember by exactly how much) in the middle of the month. By the time payday came round I was quite a bit behind and it would have eaten up most of my wages, so I haphazzardly and incredibly stupidly switched banks to NatWest. a) This caused me to completely miss the deadline of my wages and that months wages were 3 weeks late anyway and b) left this nightmare 5 years on.

Anyway, I buried my head in the sand for 4 years hoping they'd go away, and they filed a default on my file for £800. I received letters and threats from 3rd parties but I kept burying my head (I had other dramas, but not going to hide behind that anymore.).

I have now decided enough is enough and I am going to tackle this head on. I want to sort my credit file out and I am sick of owing money. I contacted Halifax and they said they had passed it over to Moorcroft, so I obviously phoned Moorcroft and they said they had passed it back to Halifax. This exchange happened about 3 or 4 times before I got so frustrated I just stopped for the day.

I am so confused as to where my debt is owed and how to claim any charges back or anything.

Any help or advice is of course greatly appreciated.

Little_Mo_70

PhilAres wrote: »

Hi guys, first time posting here.

I've read through all the guides and they sound fantastic but I think I'm in a unique situation as I can't speak to anyone who I owe my debt to.

I'm turning my financial situation right around with me getting a great new job and paying all of my debts off it's just this one is lingering.

Long story short - foolish 18 year old fell for the typical marketing stuff and got waist deep in bad credit: catalogues, over drafts and an expensive car on payments. I was banking with Halifax at the time (2007) and went over my overdraft (I cant remember by exactly how much) in the middle of the month. By the time payday came round I was quite a bit behind and it would have eaten up most of my wages, so I haphazzardly and incredibly stupidly switched banks to NatWest. a) This caused me to completely miss the deadline of my wages and that months wages were 3 weeks late anyway and b) left this nightmare 5 years on.

Anyway, I buried my head in the sand for 4 years hoping they'd go away, and they filed a default on my file for £800. I received letters and threats from 3rd parties but I kept burying my head (I had other dramas, but not going to hide behind that anymore.).

I have now decided enough is enough and I am going to tackle this head on. I want to sort my credit file out and I am sick of owing money. I contacted Halifax and they said they had passed it over to Moorcroft, so I obviously phoned Moorcroft and they said they had passed it back to Halifax. This exchange happened about 3 or 4 times before I got so frustrated I just stopped for the day.

I am so confused as to where my debt is owed and how to claim any charges back or anything.

Any help or advice is of course greatly appreciated.

Good for you for taking the first step in getting to grips with your situation. Dealing with it all can seem daunting but take things one step at a time.

The first thing I would do is write your SAR letter
to Halifax requesting all your data using the wording in MSE site template letter but tailored to suit if necessary (normally the charge is £10 for this)
http://www.moneysavingexpert.com/reclaim/bank-charges#templates
This should show all your charges and also should show who the debt was sold to / handled by. You could also put in your request letter that you need to know who currently owns your debt and explain that you have, unsuccessfully, sought this information recently. So you want copies of any such related correspondence also.

I don't suppose you have the most recent letter from the DCA?
Always write, don't bother phoning anyone as conversations can be denied to suit. Always send your letters by recorded delivery too.

Once everything has been received you can then start an affordable debt management plan and claim for refund of charges if you are eligible under the FOS criteria guide - using the advice on MSE site - (which if successful could be offset against your debt and used to pay it off or reduce it)

This seems a bit long winded but I feel you will know what I am trying to say. Best of luck, hope you get everything sorted eventually - so you can feel much better.:)

Mo

PhilAres

Thanks for your swift reply, I'll get to work on the things you outlined and inform you of the response

PhilAres

Sorry for the Thread-Necro but this has become relevant again.

After much delay, and to-ing and fro-ing I have finally sent off this letter with a £10 postal order attached. Stupidly, I forgot to sign the letter and they sent it back with a photocopy of the P.O. I of course reprinted the letter, signed it, give it a cheeky kiss and sent it back.

That was on the 18th December, do I have cause for concern that I have not yet received any response? What happens if they do not contact me, where is my postal order? I only have a receipt of the P.O and no traceability?

dunstonh

That was on the 18th December, do I have cause for concern that I have not yet received any response?

You may not have noticed but Christmas and New Years holidays took place shortly after that where almost have the days have been non-working days.

Give it a chance.

PhilAres

I have received all of my details from Halifax as requested.

I have yet to find out who exactly is holding my debt and how to contact them.

When I was looking through my statements I see this (replace [DOT] with a . )

[the usual http and the w's][DOT]anony[DOT]ws/i/2013/02/08/EDVNq[DOT]jpg

I had an agreed limit of £100 overdraft and 2 DD's were taken out, it then spiralled out of control and I had no way of paying back. I changed bank accounts just so my wages werent swallowed up by these huge charges.

Do you think I have reasonable grounds to complain? Also what is my next step in paying my debt off?

I have in total £868 worth of charges on the account.

I was £53.88 over of my agreed overdraft (£100) on the 22 Jan 09.

From 5 Feb to 28 Feb 09 I incurred £378. A further £210 was charged during March-August, leaving me -£803.16

Little_Mo_70

PhilAres wrote: »

I have received all of my details from Halifax as requested.

I have yet to find out who exactly is holding my debt and how to contact them.

When I was looking through my statements I see this (replace [DOT] with a . )

[the usual http and the w's][DOT]anony[DOT]ws/i/2013/02/08/EDVNq[DOT]jpg

I had an agreed limit of £100 overdraft and 2 DD's were taken out, it then spiralled out of control and I had no way of paying back. I changed bank accounts just so my wages werent swallowed up by these huge charges.

Do you think I have reasonable grounds to complain? Also what is my next step in paying my debt off?

I have in total £868 worth of charges on the account.

I was £53.88 over of my agreed overdraft (£100) on the 22 Jan 09.

From 5 Feb to 28 Feb 09 I incurred £378. A further £210 was charged during March-August, leaving me -£803.16

Only you would know if the FoS financial hardship criteria fits your situation and whether to attempt to claim a refund. If you are no longer in financial hardship there may be no sympathy from Halifax given the spending habits of your 'previous life'! You could claim you felt pressured into opening the account if that were truely the case but it could well be argued that no one forced you to do it nor forced you to spend, spend, spend and (I don't mean that unkindly).

As your debt seems to have been passed back to Halifax
my advice would be to write to them with a proposal to pay back a monthly figure that you can realistically, comfortably afford. Don't forget to send your letter by recorded post. (Writing is important as you will then have proof you are trying to clear your debt - keep all copy letters)

Say also that you intend to clear all your debt and to manage your account properly in the future.

You could ask, nicely;), if they would kindly consider putting a freeze on any further charges on this account so you can clear it.

Good luck

Mo

PhilAres

Once again, very sorry for the thread necro. This has once again become relevant.

I have had great success with getting all of my fees wiped off leaving the actual balance at £113.

What I'm seeing now is that the default on my account still shows at £806. Do I have a good case to write to Halifax to request they remove this default? It will be due to expire in 2 years time and I'm worried in case it affects my chances of a mortgage.

Best regards

dunstonh

What I'm seeing now is that the default on my account still shows at £806. Do I have a good case to write to Halifax to request they remove this default?

Normally no. A goodwill refund of charges does not reflect the fact that the default occurred. you can ask. You may get lucky but you dont really have a case if they say no.

McKneff

And being 4 years old, I don't think it will have a major effect on you getting a mortgage.


Well done for sorting your finances out and best wishes for the future.


Annie

PhilAres

dunstonh wrote: »

Normally no. A goodwill refund of charges does not reflect the fact that the default occurred. you can ask. You may get lucky but you dont really have a case if they say no.

Thanks for the responses guys.

I'm getting quite a lot of mixed reports at how detrimental a default is in terms of getting a mortgage.

For example yesterday, I did a "soft-search" application with NatWest, over the phone to see the rates/types of mortgage they could offer me. I understand this is a very basic search but it came back with a very high risk of decline.

I'm just trying to whittle down any and all obstacles in my way.