Any dealings with Coop Bank Credit Card / Personal Loan

gatwickba

I have a credit card and a personal loan with the Co-operative Bank.
I have written to them offering reduced payments on both, which were rejected.
The woman I spoke to kept saying the personal loan would be terminated and instead put onto my current account as an un-authorised overdraft and interest charged accordingly. She went on to add that the debt would be referred to their legal department and a charge placed against my property and they could insist the property be sold as we have a large sum of equity in the house. There was not much mention of the credit card at all, and to be honest I was that scared of the house being forcebly sold I just told her I would take advice and call back.

I have a similar set up with EGG, who have kindly accepted lower payments on both a card and loan with them, to be reviewed in 6 months.

Is defaulting on a credit card different than a loan? I know interest is calculated differently but why was the coop woman so insistent that the loan would be put on my current account, with no mention of the credit card?

Also, if you have one of each with a single bank, can you default on one without affecting the other?

Thanks.

lynzpower

Im sorry, I really dont know the answer to that.

Are you doing a DMP ?

Have you ever posted up a SOA before? It does sound like things are really difficult for you, and if you wanted to post you SOA, ( see southern scousers sticky at the rtop of the forum for guidance on this) then i know we'll all happily help and offer advice.

Lynz
x

gatwickba

Hiya.....

I've done my SOA through cccs, but am contacting my creditors individually as my job does not really allow for regular payments to a DMP, one month could be really good earnings, but the next could be nothing at all so I am in a spot!

Like I said, EGG have been great, but the Coop have been a nightmare. I have already moved current account and claimed back my charges from coop. Hopefully when I get replies from the others, I can get my head sorted.
Without the mortgage, I owe in the region of £88,000 on un-secured cards and loans. Most of which has been mounting up while setting up my own business...hence the huge variation in income from one month to the next!

Cheers.

gatwickba

Sorry to bump this up again, but was curious if anyone has experience with the Cooperative Bank?

Thanks

angelavdavis

Sorry no co-op experience here I'm afraid.

Is your Co-op bank account still active?

Are you able to close your Co-op account now before they transfer anything into it?

I would still maintain payments at the lower rate you offered anyway, so if it does go to court, you can prove that is all you can afford and that you have been making payments regularly in an attempt to stay on top of your debts during this time.

Any organisation will always try to scare you into paying off your debts asap. Its a really bad idea to turn unsecured debt into secured debt for whatever reason. If you are forced to have a charge order placed on your property - that's different.

Co-op might do all the things they say, but it won't happen overnight.

Might be worth changing the subject of your post to "Anyone dealt with Co-Op Bank/Credit card?" for more specific posts.

danno_4

Hi
A defalt notice relates to any type of debt,If you have two loans with the same company(credit card or personal loan)and you keep the one up to date them they cannot default on the other.
Regards
Danno

gatwickba

The bank will not allow me to close my current account as the loan standing order is paid from that account.

I am confused Danno, when you have 2 loans and only fall into arrears on one. How can they not default it?

Many Thanks to all who assist!

Leixlip1

I have a loan with the Co-Op - initially they were a problem i.e. claiming not to receive mail, writing to me from different business addresses etc After making an official complaint and pointing out all of my correspondence had been sent recorded delivery and had been signed for by them they were helpful and accepted my payment offer for an initial 3 month period. No mention of Charging Orders.

gatwickba

Thanks for the info.....

Did they freeze interest on your loan?

Ta.

Leixlip1

Yes they did freeze interest.

john_kent

I am still having issues with Co Op. They are the only creditor that will not freeze intrest , just lower it.

I did write them a letter , stating that any future change in my circumstance will result in new payments being offered based on thier percentage of my debt as at February 2006. I sent it recorded , have all the receipts for delivery. And never heard a reply.

They are now moaning at me , because, I bumped up payments to all my creditors based on that figure in feb 06. Under my scheme they get £105 a month under theirs , because they still charge intrest , they would get £130.

I also worte a letter to all my creditors , explaining that I have increased there payments accordingly , but Co Op were being unhelpful and they may insist on me pro rata paying based on current debt. And if this was the case, I thank them for their understanding and help during this difficult time , but would seriousley have to consider bankruptcy.

Egg even wrote back and were sympathetic to my position , but understanding of any decision I would have to make.

I have now decided , that any odds and sods I get (tips , cash found in my job , etc......) will now be pro ratad out against those who help me. Co op can go to hell as far as I am concerned. They are unhelpful , obnoxious and damn right rude.