Co-op Unauthorized Overdraft Debt

CamRonz89

Hey guys,

As the tittle Suggests im in a bit of a pickle with the co-op, a couple of months ago i went overdrawn on my current account unauthorized at the time i was in financial hardship as as a result i kept withdrawing from the overdraft and now have racked up £255 worth of charges. I have burried my head in the sand for the past month hoping it would go away but it hasn't i fully hold my hands up and say i have done this to myself im now getting letters and phonecalls on a weekly basis, i was told to complete a Monthly Income and Expenditure and send it to them but i dont know where im meant to sent it to,im also broke at the moment and i havent got a clue on how im going to pay it back i really dont want to end up being taken to court i need some advice and guidence as this is the first time i have been in debt and im really worried this will affect my credit later on down the line

cookyy2k

It sounds like they are being extremely accommodating to me, they have sent you a Monthly Income and Expenditure form which sounds to me like they're willing to make an arrangement for you to pay your overdraft back at a rate you can afford. I'd recommend finding out where to send it and returning it recorded delivery.

CamRonz89

Sorry but i dindt put the fact that they never sent me it i found a template online, they are in fact the opposite they were suppose to send me one out but it never arrived when i rang them up to try and explain the sitution they were quite rude and unwilling to help, i have a appointment with my local rights center on the 21st but im getting letters that say they are going to take further action against me. Im scared and i dont know what to do

fatbelly

How much overdrawn are you?

Do you have other debts? (what are they? how much?)

What income do you have at the moment? Could you live on it if you did not have debts/charges/interest to pay?

Does your rights centre actually take people on as debt clients and help them to put a debt management plan together?

CamRonz89

Hi there, Im overdrawn by £255 i have no other debts apart from the co-op at the min im on Esa for heart and back problems i cant live on it as it is so there is no way i can afford to pay it off in full. im not sure if they take people on as debt cilent as i have never had to use them.

fatbelly

Hi

May be worth googling them to check what they do.

£71.70 income then? With no surplus? I'm thinking you need a new account with someone other than the co-op to protect your income. A basic one will do.

http://www.moneysavingexpert.com/banking/basic-bank-accounts

Then it's token offer territory to the co-op (£1 per month by standing order) until you get some more income, which may happen if you can move to one of the 'groups' under ESA.

The rights centre should be able to check your benefits and may be able to help with sorting out the co-op.

They rarely take court action, and won't be doing so for £255. In fact, if asked nicely, they may even agree to refund some of the charges.

CamRonz89

thank you so much for your info, I have another account with lloyds that i use as my main account i have heard that i can set up a standing order for £1 do you know how i would go about getting it set up ? could they take anymore action against me if that was set up ? sorry for all the questions just never been in this mess before

dancingfairy

You go to your bank and ask them to set up a standing order to your other account and ask them to set it up for 1 pound. You will need to provide your new account with details of where you want the money to go (sort code, acc number etc) , how much and when and they should set it all up for you. Job done.
All you can do is offer what you can, which is 1 pound per month.
Yes, your credit rating will suffer but some things are more important than a credit rating, and frankly you can't pay what you haven't got.
Yes, the co-op may decide to take you to court. You don't even have to turn up, a judge will look at the facts and paperwork and make a decision. It is highly likely that he will decide that yes, you owe the money and you should pay 1 pound per month (as you will have provided a monthly budget sheet). Life will go on as normal.
I'm not sure where in the UK you are - England or Scotland but you may find something like a DRO would suit you (Assuming you don't own your own home). It's like a miniform of bankruptcy and should cover your debts. It may be a bit like using a sledge hammer to crack a nut, it will very much depend on whether your current situation of being unwell and on benefits is likely to change anytime soon. It is definitely worth exploring, especially since it would deal with your debt and you could then concentrate on getting better.
df

thewhiteavenger

A DRO is a sledgehammer to crack a nut for £255 total debt - probably wouldn't be accepted at that level.

Co-Op are usually pretty reasonable if you engage with them, either direct or through a third party. Can't see court action from them over a £255 debt.

Just set up the token offer and make sure they know about your appointment later this month. Don't stress.

CamRonz89

Thank you all for your comments

ianbalby

bank do give killer charges for going overdrawn - so unfair