Natwest Deafulted Current Account

[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

National_Debtline

Hi Craig. I've offered some thoughts below in bold.

craig1123 wrote: »

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? Yes
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. The debt will normally have frozen by the time it is sold on, and there will not normally be any scope for the purchaser to add further costs unless they take it to court. The third party is likely to have bought the debt for less than its paper value as they and Natwest will by now not be expecting to recover the full amount. This can lead to them offering substantial discounts if the debtor can pay a one-off lump sum.
3. Once we set up a repayment plan are they allowed to add interest. See #2
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). On the balance of probabilities, this debt is very unlikely to still be in Natwest's hands 3-4 years on. Even if it were, I wouldn't rate her chances of getting an old default marker removed too highly. Lenders are expected to keep accurate records of borrowers' histories and amendments should only normally be made in the case of genuine error.


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

Dennis
@natdebtline

[Deleted User]

thanks for your rply