Overdraft debt

lution

Wondered if someone could give me a little advice on a situation I've found myself in.

Basically I've opened a new account using a switching service which has ended in the account with Halifax being closed with an outstanding balance of £3000. I've switched before and the original account remained open.

Anyway they have asked for the balance within 30 days or it will go over to their collections department. I cannot make the payment in 30 days. The best I could possibly do is probably 3 months.

Will they arrange a payment plan and will this put a default on my credit file? What would you suggest is the best thing to do?

Regards

FireWyrm

Weren't you made aware that using a switching service closes the donor account? You most certainly should have been and it should be clear on your documentation.

Unfortunately, overdrafts are always payable on demand and if you couldn't take it with you, the would have told you to make arrangements to pay it off. This oversight will almost certainly result in defaults now since it is a debt. Your best bet perhaps is to get a cash transfer off a credit card to pay it. MBNA have this facility, but do make sure it is a cash transfer and not a cash advance which is something else entirely. You could try for another loan somewhere else but you will almost certainly pay some interest on this...it depends how desperate you are to keep your credit history clean.

The donor bank are unlikely to allow you to pay this off over 3 months, interest and penalty charge free. Sorry.

lution

Thanks, it's my own fault. Will try and get an overdraft opened on the new account to transfer it across. Credit card is probably not an option with the 2 current cards I have

HappyMJ

lution wrote: »

Thanks, it's my own fault. Will try and get an overdraft opened on the new account to transfer it across. Credit card is probably not an option with the 2 current cards I have

I've got many more than 2 credit cards so it is an option whilst you haven't defaulted yet I'd explore that option.

sourcrates

Halifax should allow you to repay this over time, however the normal £1 a day fee will still apply.
Usually they will allow you to pay it off over a period of a few months, you need to write to them in order to achieve this.

lution

sourcrates wrote: »

Halifax should allow you to repay this over time, however the normal £1 a day fee will still apply.
Usually they will allow you to pay it off over a period of a few months, you need to write to them in order to achieve this.

Thanks sourcrates, do you know if this marks the account as defaulted? I spoke to collections and they said it depends on the repayments as to whether it is, but as the account isn't yet with them I felt she was just telling me anything to get me off the phone.

sourcrates

lution wrote: »

Thanks sourcrates, do you know if this marks the account as defaulted? I spoke to collections and they said it depends on the repayments as to whether it is, but as the account isn't yet with them I felt she was just telling me anything to get me off the phone.

Shouldn't do, there are no set repayments for an overdraft, so as long as you make regular agreed payments to it, they will have no reason to default you.

Brightspark87

can you cancel the switch? Might help? Then you can sort new current account in your own time.