Unemployed And soaring Bank Charges

steve50_2

can anyone help on how/what i can do with soaring bank charges?
My son is unemployed as gone over is overdraft limit and is incurring £90 a month bank charges plus intrest for going over is limit. Its a no win situation there is no way he can ever pay the charges off as he is unemployed.Got a call left on answer machine from a Debt agency the bank have employed to recover the debt.. He currently owes just over £2,000.What can he do and where does he go to sort this out. As long as the Bank keep sending bank charges out it just keeps on increasing every month?? HELP!!!!!!!

floss2

Has he told the bank he is unemployed?

Has he stopped all payments (DD, SO) from the account?

Is his benefit going into that account?

steve50_2

Yes told back he is not working but isnt getting any help from them!! They are not very helpfull or show no empathy towards is situation. Phone call from Debt management yesterday saying he as to pay £502 by friday or they will esculate the matter. Gets is money paid into another account he opened so he would have access to it... Not sure if a loan to pay off the bank is the way to go and then reclaim the Bank Charges ..?

rog2

steve50 wrote: »

Yes told back he is not working but isnt getting any help from them!! They are not very helpfull or show no empathy towards is situation. Phone call from Debt management yesterday saying he as to pay £502 by friday or they will esculate the matter. Gets is money paid into another account he opened so he would have access to it... Not sure if a loan to pay off the bank is the way to go and then reclaim the Bank Charges ..?

Hi Steve - Not sure that a loan is the right way to go, mate. This could well be playing into the hands of the bank. Banks are notorious 'fair-weather friends' always ready to 'help out' with a loan when things are going well, but among the first to put the boot in when you're in trouble.
I can see that your son feels he is in a no-win situation, but there is always a solution. I think he was right in opening another account, for his benefit payments, although, legally, a Bank should not use benefits to clear debt.
If the debt collection agency simply left a message to say that he MUST pay the £500 by Friday, then they are wrong - they should ONLY discuss the matter with your son - that is a whole other subject.
I suggest that your son has a word with one of the debt counselling charities, such as Payplan, CCCS or the CAB, who will be able to advise him on the best way to tackle his current problem.
Just remember - it is only money, and your son can not pay what he hasn't got, no matter how many threats the bank, or their debt collector, makes.

steve50_2

Thanks for taking time to reply, no way going to pay money by friday so arranged to see someone at cab. The £500 pound payment was told to him by phone when they rang up, they wouldn't listen to any reasoning as to is situation, but like you say if he aint got it then they cant have it... Just see what cab say then take it from there. Just thanks again for taking time to answer much appreciated.......Steve

chevalier

Does he have anything he can sell on ebay to get him back under his overdraft limit? That will stop the charges at least
Is there a prospect of a job soon? Ie is he applying? he can't be proud - anything that is more money than jsa he should take at the minute, just to give him some breathing space.
best of luck
chev