Overdraft repayment plan

Daedalus

If you have an overdraft called in and you come to an agreement with the bank to pay back X amount a month.

Will this effect your credit rating?

It was a case of a letter saying 'after review we can no longer maintain your limit, contact us by X or we will assume you no longer require the facility'. So haven't defaulted, but will the payment plan mark the file

Lensman_2

Mine didn't.

They called the OD in all at once. (Unfairly as I have since learned - they can't call it all in at once).

I did negotiate a £50 a month reduction and budgeted for that as an extra £50 a month bill. So - I didn't go over my new and reduced limit each month.

My credit file shows green for the duration.

Tixy

It may or may not - worth clarifying with the lender and trying to come to a repayment arrangement at a level that they agree not to register a default, or overlimit markers.

Daedalus

It is Nationwide if that helps. It only occurred to me today that it might, for if they told me it did effect my rating I could seek an alternative, Bank of Mum and Dad etc.

I will ring them tomorrow and check, be annoyed if it does, I have debt but treading water till I find full time work and not missed any payments.

Yeah it is a staged lowering of the limit, he put a lot of emphasis on it being 'penny sensitive', that if I went over the limit at any time the plan would lapse and be liable to pay it all off immediately.

Lea74

Daedalus wrote: »

It is Nationwide if that helps. It only occurred to me today that it might, for if they told me it did effect my rating I could seek an alternative, Bank of Mum and Dad etc.

I will ring them tomorrow and check, be annoyed if it does, I have debt but treading water till I find full time work and not missed any payments.

Yeah it is a staged lowering of the limit, he put a lot of emphasis on it being 'penny sensitive', that if I went over the limit at any time the plan would lapse and be liable to pay it all off immediately.

Hi, I had the same conversation with my bank today regarding a payment plan. The chap I spoke to basically talked me out of it by saying that if I didnt make a payment the plan lapse etc, etc, he really scared me out of it. Its making think now that perhaps he was trained to talk me out of it .....

Hope you get a job soon.

Daedalus

Lea74 wrote: »

Hi, I had the same conversation with my bank today regarding a payment plan. The chap I spoke to basically talked me out of it by saying that if I didnt make a payment the plan lapse etc, etc, he really scared me out of it. Its making think now that perhaps he was trained to talk me out of it .....

Hope you get a job soon.

Did you approach them? I appeared to have no choice, reduce plan or pay all (default).

[Deleted User]

I had the same, I was asked to repay my OD on my account, I could not and the bank agreed that I could pay £100.00 per month, at the time I could not afford this and asked to pay £50.00.

Nothing was said by the bank and so I did just that. I did't get any letters until I'd nearly paid the amount off. At about month 6, I had the letter saying I'd not kept to the agreed £100.00 per month and they wanted the whole amount back right away.

At this point I checked my credit report and found that it went like this;

Month 1 - 1 Missed Payment
Month 2 - 3 Missed Payments
Month 3 - 5 Missed Payments
Month 4 - 5 Missed Payments
Month 5 - 5 Missed Payments
Month 6 - 6 Missed Payments

I realised what they were doing and paid of the whole amount quickly.

I complained to the FOS. I was told, because I had not repaid the full amount when requested and had therefore breached the terms and conditions, they were not prepared to ask the bank to remove the negative data. I stated that it should say "arrangement", but they confirmed to me that it did not even need to say this as this was not the original agreement.

It ruined my life in the short term and I hate them for it now!

It now says I am a "delinquent" :mad:

Samuel_

assj wrote: »

I had the same, I was asked to repay my OD on my account, I could not and the bank agreed that I could pay £100.00 per month, at the time I could not afford this and asked to pay £50.00.

Nothing was said by the bank and so I did just that. I did't get any letters until I'd nearly paid the amount off. At about month 6, I had the letter saying I'd not kept to the agreed £100.00 per month and they wanted the whole amount back right away.

At this point I checked my credit report and found that it went like this;

Month 1 - 1 Missed Payment
Month 2 - 3 Missed Payments
Month 3 - 5 Missed Payments
Month 4 - 5 Missed Payments
Month 5 - 5 Missed Payments
Month 6 - 6 Missed Payments

I realised what they were doing and paid of the whole amount quickly.

I complained to the FOS. I was told, because I had not repaid the full amount when requested and had therefore breached the terms and conditions, they were not prepared to ask the bank to remove the negative data. I stated that it should say "arrangement", but they confirmed to me that it did not even need to say this as this was not the original agreement.

It ruined my life in the short term and I hate them for it now!

It now says I am a "delinquent" :mad:

How did you check your credit report?

DevCoder

assj wrote: »

I had the same, I was asked to repay my OD on my account, I could not and the bank agreed that I could pay £100.00 per month, at the time I could not afford this and asked to pay £50.00.

Nothing was said by the bank and so I did just that. I did't get any letters until I'd nearly paid the amount off. At about month 6, I had the letter saying I'd not kept to the agreed £100.00 per month and they wanted the whole amount back right away.

At this point I checked my credit report and found that it went like this;

Month 1 - 1 Missed Payment
Month 2 - 3 Missed Payments
Month 3 - 5 Missed Payments
Month 4 - 5 Missed Payments
Month 5 - 5 Missed Payments
Month 6 - 6 Missed Payments

I realised what they were doing and paid of the whole amount quickly.

I complained to the FOS. I was told, because I had not repaid the full amount when requested and had therefore breached the terms and conditions, they were not prepared to ask the bank to remove the negative data. I stated that it should say "arrangement", but they confirmed to me that it did not even need to say this as this was not the original agreement.

It ruined my life in the short term and I hate them for it now!

It now says I am a "delinquent" :mad:

But you didnt get confirmation in writing that they were prepared to accept your counter-offer so the credit file is accurately represented.

Always, always get agreement in writing that any counter-offer is accepted.

Daedalus

That is worrying assj.

krisdorey wrote: »

But you didnt get confirmation in writing that they were prepared to accept your counter-offer so the credit file is accurately represented.

Always, always get agreement in writing that any counter-offer is accepted.

He did say he would send it in writing in the post.

What has me worried that like with a loan, if you negotiate payment they mark it as so on the report don't they?

I don't think they ever asked for it all to be paid. I am pretty sure the letter stated, they couldn't maintain the level after review, contact us. It was me who said I could afford to pay it all off, would they accept £150 a month?.

Is this me trying to be too technical that as they didn't actually call it in that they can't claim I have defaulted.

[Deleted User]

I didn't explain very well, in the end all of my offers were accepted. I was paid compensation because the bank agreed they had made errors and would have accepted what I had done.

Even when I was under the arrangement I was being charged, even when they confirmed in writing month after month that I would not be.

The problem was they refused to remove negative data as they argued that I should have repaid in full when they requested.

The FOS backed them up and would not even entertain the reasons in my complaint, or the errors that I could prove were made by the bank.

I was so upset when I got the feedback because I was sure with all the proof that I had I could not loose.

If anyone would like to see the feedback from the FOS I will try to find it out, I honestly felt that the person dealing with my case was against me and was in bed with the bank.

As others said record everything, even calls if you can.