Drowning in new Nationwide charges

MiM

My sister was close to getting back £3,000 from Nationwide when the court ruling came in suspending cases.

That was bad enough but she's just told me she's still paying out £300 a month in bank charges to them, seemingly at the same old rates.

Can they do this? Can anyone give any advice I can pass on to her?

Conor_3

Yes they can. Here's a simple suggestion: Stop using the account and get her wages paid elsewhere, cancel the direct debits/standing orders etc on that account and move them to the new account.

MiM

Unfortunately she's self empoloyted so no wages as such. I've got referral details from A&L - will they still take her on?

inmypocketnottheirs

Conor wrote: »

Yes they can. Here's a simple suggestion: Stop using the account and get her wages paid elsewhere, cancel the direct debits/standing orders etc on that account and move them to the new account.

And change the way she runs her finances. As someone famous once said, 'insanity is continuing to do the same thing and expecting different results'. Wise words indeed!

A_Nice_Englishman

Presumably the charges arise from bounced cheques or direct debits or unauthorised overdrafts.

If we are talking about her business account, it sounds to me as though she is either paying herself more than her business is making or the business is under-capitalised. Is she chasing her customers for overdue payments? Is she paying her suppliers earlier than she needs to?

If it's her personal account, is she living beyond her means?

If she doesn't have a separate business account, opening one would help her identify where the problem lies.

MiM

I think the problem is the business is unsustainable and I've told her that. Once she has paid wages for employees there isn't enough left for herself so the cycle of debt continues.

She's agreed it can't continue and is looking for other options, ie paid employment. Unfortunately, in the position she's in she's been unable to find the most economic sources of borrowing and I was shocked to hear she's even had problems paying her mortgage.