Collecting debt on a graduate account that is still interest free!??

carolineh_23

Hello Everyone!

I was wondering if anyone had any information or advise on a matter which has just come up...

I graduated from uni last July and ever since my student account with Abbey was transferred to a graduate account (interest free for 3 years, taking off 500GBP yearly.

In September I moved to Canada to work here for a year, possibly longer. I have been regularly been making payments on my credit cards, however I assumed I wouldnt have to make regular payments on an interest free overdraft right away.

I've been with Abbey since I was 16 with a 16-21 account then a student account and now a graduate account. They gave me my first credit card when I was 18 with a limit of 1000GBP and have kept increasing this ever since.

My mum called me the other day to tell me that I received some post and that Abbey had sold my interest free graduate account debt to a collections agency!!! (i cant remember the name right now) All because I havent used my account. I havent used it because I dont want to pay the fees using my card overseas! Is it fair they have tarnished my good credit rating that has been so hard to keep clean with my student debts??? On a graduate account?!

Has anyone else had an experience like this? I'm going to write to Abbey and ask what is going on and why they sold the debt so quickly... is there anything else I can do? I'm earning a low wage in Canadian dollars so I'm not exactly making enough to send a lot back, just enough to cover credit card payments...

I'm so confused and annoyed now. What will this do to my credit rating!?


:mad:

Storm

It will probably be in your terms & conditions that you need to regularly use the account to keep the overdraft facility - if they've had nothing going in or out since September then they've probably assumed that you've abandoned the account.

Contact them asap - you'll probably have to pay it back still unless you start using the account, but at least it means your mum won't get hassle of debt collectors turning up on the doorstep.

tomterm8

Basically, they are within their rights. Your account terms and conditions will say that you have to pay in £XXX a month / year, and that they can terminate your overdraft at any time.

Best thing to do is write to them explaining that you are working in Canada at the moment and that you did not recieve notice of the closure of the account, and ask if they can either reopen the account without prejudice OR explain that you weren't expecting to repay the overdraft in full so soon and ask if they will accept a monthly payment of £XXX for the overdraft.Ask them to remove any default notice from your record.

f85

Abbey T&Cs:

7. Payments into the account

You must maintain regular payments into your Account. The minimum regular payment is the amount we notified to you when you opened your Account. If you do not maintain regular payments into your Account, we may close it by giving you at least 30 days' notice (please refer to Condition 24). You may also be expected to credit a minimum amount to your account in order to benefit from specific account features. If this is the case, we will notify you of the minimum amount required.

It's normal more productive to call them initially to see if they can resolve it by telephone. Here's the intl. no :

+44 1908 237963

F

carolineh_23

Thanks guys,

So do you think this is reversable if I call and arrange regular monthly payments into the account? (wont be a huge amount) Do they have the power to take off the negative rating on my credit history or is the damage done? I'm worried they wont deal with me and I'll have to deal with a collections agency...

carolineh_23

by the way... good luck with your exams f85!!

tomterm8

They have the power to take of the negative rating, and if you are polite and reasonable, and explain you were not aware of any problem, and suggest paying money over a reasonable period they should do so.