Natwest loan and overdraft assigned to DCA as one debt

Freemannodebt

Hi, this is my first time posting and just after confirmation of my thoughts and perhaps further info to help.
Basically, we took out a loan with NatWest for £10k to consolidate credit cards about 5/6 years ago, at the time, we banked with NatWest and had a roughly £2k overdraft which was to its limit. Due to unforeseen circumstances, we were unable to make the regular payments and were put in default and these debts were assigned to wescot.
On any correspondence from them, they are treating the two separate debts as one debt. I'm of the understanding that this is bad practice and might give us grounds to try and clear the account on the basis that as they are two separate debts, they should be treated as such because of the differing interest rates and surely any supposed CCA agreement would have been individual to each agreement, because of the different T&C's on each loan? Could anyone help further on this please?

[Deleted User]

How are they two separate debts?

The debt is owed from the same bank account and has been "sold on" to Debt Collectors simply as one amount owed!

I think you really are clutching at straws here hoping that you'll somehow wriggle out of paying.

You can, of course, complain giving your reasons why you think the debt should be treated separately.

I sincerely doubt this will in any way improve your circumstance or indeed mean you owe any less.

You'll probably get more informed opinion if you post on the "Debt Free Wannabe" board;
http://forums.moneysavingexpert.com/forumdisplay.php?f=76

Fosterdog

One thing to consider is if the debt is split you will end up with maybe two lots of admin charges instead of one, if it goes to court you'd have two CCJs against you not one and if bailiffs ever got involved there would be two lots of charges for things such as visits and possibly costs for seizing goods. As the interest is frozen on them they are doing you a favour by lumping them together.

steampowered

If the debts had different interest rates, then the interest needs to be calculated separately.

It wouldn't matter if the interest has been frozen but I assume the interest would keep running at the relevant rate.

The DCA can chase the debts together, but can't increase the amount of the debt above what you would have had to pay the bank.

Agricolae

NatWest sometimes takes a somewhat holistic view of a person's debts when it feels their relationship with that person has broken down (i.e. it uses any credit balances that person has on other accounts to reduce the debt, closes all their accounts and passes on the overall remaining debt to collectors, or sells them to another company). Quite unpleasant if you're not expecting it!

I can't tell if that's what's happened here yet. Have you defaulted on the debts? Most companies freeze the interest if you've defaulted so it may not matter if they're not treating them separately. Even if you've not defaulted they might have frozen the interest anyway because they know there's no chance you'll ever pay it off otherwise.

[Deleted User]

Agricolae_post#5 wrote: »

I can't tell if that's what's happened here yet. Have you defaulted on the debts?

It always pays to read the thread carefully before responding...

Freemannodebt_post#1 wrote: »

Due to unforeseen circumstances, we were unable to make the regular payments and were put in default

[Deleted User]

steampowered wrote: »

It wouldn't matter if the interest has been frozen but I assume the interest would keep running at the relevant rate.

Not on defaulted debt that collectors are seeking to retrieve.

bris

Brilliant, OP go for it, tell them that its to be written off for their cheek, that will show them.