Natwest Deafulted Current Account on Noddle

[Deleted User]

Good morning,


My girlfriend has an outstanding default on an account since 2012. Last year she rang Natwest to try and arrange a repayment plan. She is unsure of the details but believe that they would not take a payment or set up a plan as the debt was no longer with them.


We will be ringing up again this Friday to try and arrange a debt plan. What I would like to know is what to expect.


1. Are Natwest aloud to sell on the debt to a third party?
2. If so can the third party add additional fees or is it the balance at the time the debt was sold that has to be repaid.
3. Once we set up a repayment plan are they allowed to add interest.
4. If the debt is still with Natwest and we set up a repayment plan are we likely to be able to get them to remove past defaults from her credit history (as per Martin's guide).


FYI debt is £1200 (taken from Noddle report) and we plan to repay £50 a month. She is a full time post grad student so has no income.


Thanks

rtho782

1. Yes
2. Potentially there may be fees for debt collection etc.
3. Not usually
4. Probably not.

[Deleted User]

rtho782 wrote: »

1. Yes
2. Potentially there may be fees for debt collection etc.
3. Not usually
4. Probably not.

2. Are there guidelines on what these amounts may be?

fermi

craig1123 wrote: »

2. Are there guidelines on what these amounts may be?

See: https://www.handbook.fca.org.uk/handbook/CONC/7/7.pdf

rtho782

Not guidelines, it depends on the term of the original agreement, which still stand despite the new owner.

It probably comes down to paying their costs, if the debt collectors they decide to use charge loads, this could be big. If the decide to take it to court, there are court costs.

I'm afraid there is not a set amount.

If she has no income, she has nothing to give. I would personally not commit to paying money I didn't have to them.

The reality is, if the debt has been sold, it will be for pennies in the pound, (so, they may have bought the £1200 debt for £200) and they will just be gambling that they will recover more than they paid from her.

£1200 is a small amount and it seems unlikely (although by no means certain) that it will lead to a CCJ. She is a student, has no income, and they can't take what she doesn't have.

The damage to her credit rating is already done and paying it off is unlikely to help as much as you'd think.

If she makes no payments and does not acknowledge the debt for another few years it will become statute barred.

Shortly lots of people will be along to tell you that she has a moral obligation to pay back the money even if it means she can't eat.

Personally while I agree it should be paid back her studies and being able to live are more important I feel.

[Deleted User]

Every month the Natwest defaults is till showing as defaulting on Noddle. This shouldn't be the case if it has been sold to a third party should it?