Natwest Default

DerbyRams

Hi

I have an old defaulted Natwest current account from 2005 for a balance of £495, I was not in control of my money then and almost forgot about it for a bit. (Silly I know)

I now bank with Natwest with a new account at a new address and that is my only outstanding 'debt', I have overdrafts etc now but thankfully everything is all in check.

After checking my credit report, I have for the last few weeks tried to gain some information about the default etc and everybody including Experian and indeed Natwest could not find any information on the account. Today after a long chat with Natwest have gained some information including account number, sort code etc.

After speaking with Natwest, they advised it is showing in their system as "written off" and the account is closed. To date they have not sold the debt on and it remains with Natwest.

They did however, say that they cannot put an arrangement in place for me to pay the amount, I will have to keep track of my own payments, and I can pay what I want when I want, they also could not guarantee that it won't be sold on in future even if I am actively paying it off.

I know it's only £495 but due to other financial commitments would prefer not to pay a lump sum rather pay it off in about 5-10 payments.

My questions are: What is the typical process in this situation, can they sell it on whilst I am paying it off? I don't wan't to pay off, say half then have to pay half again to some debt agency in fees.

Also, why cant they put something into place to arrange payments? After all it is in their interest to help get their money back, paying what I want when I want seems like it isn't that important to them. It certainly came across that way on the phone. They never even asked when I was planning to pay.

My last question(s) are:

I did ask about a settlement fee if I paid in full and they said they can do that, but never went into much detail, they just said that it would show on my credit file as only partially settled. How much of a negative impact would that have against a fully settled account? I appreciate that both would improve my score/credit over a defaulted file.

And if all I have at present is one defaulted file on my credit file, once this is either settled/partially settled, how much can this improve your score? ( I know there are many more factors that can define your score, but a typical percentage is fine)

Any help would be much appreciated.

Thanks

Jay

Heffi1

When did you last acknowledge the debt or make a payment towards it, because if it is over 6 years (5 in Scotland) then the debt would be unenforceable so could not be chased through the courts etc. It still exists, but they cannot make you pay it.

DerbyRams

Hi,

Thanks for your reply.

I forgot to mention, the account was open in June 2005 but defaulted in 2009 so shall remain on my file until June 2015.

happy_bunny_2

If they figure out what they are doing, they can use the right to offset and take the money owing out of your account in one go, that's your in use Natwest account. I would be changing banks personally. On the other hand, they may never figure it out or look kindly on your efforts to pay it back. Sadly though, different departments don't often talk to each other

DerbyRams

Thanks again for your reply, what are the differences on your credit file between partially settled and settled in regards to the negative effects?

happy_bunny_2

Probably not a lot. Still a default. Maybe settled better as it gets older. Also shows you paid it all back