Need help in drafting letter to bank

dsljfreeman

I recently changed banks from Natwest to Alliance and Leicester, I had a £4400 overdraft with Natwest and have left it there as A&L wouldn't give me that much.

I'm currently paying £60 per month in interest alone for this overdraft so the balance isn't going anywhere. I want to write to Natwest and ask them to freeze the interest so that the £60 I pay every month is reducing the balance but I'm a novice when it comes to writing letters like that, and I'm hoping you lovely people could help me with it.

Thank you in advance

Laura x

dsljfreeman

just bumping again for some advice, cheers xx

Gale_10

Hi there,

OK as far as I know there isn't a template letter, but this is my effort, you can use it if you see fit.


Dear Sir/Madam,

Re: Account number XXXXXXXXXXXXX

I refer to my account above. As you are aware, I am currently paying £xxx per month off this debt. However, due to the interest charged, the debt is going down at a very slow rate. Sadly I am unable to pay more than £xxx per month at the moment. I would ask, therefore, that you freeze the interest on this account.

I enclose details of my incomings and outgoings.


Yours sincerely,

Your name

I think if you are going to ask for them to freeze the interest, then you will need to let them know your income and expenditure. I may be wrong on this but I expect someone will come along and let us know if I am.

There are lots of other things you can do to help reduce your debts, like posting up an SOA for everyone to look at where you can reduce things. You can try and reclaim your bank charges particularly as you have another bank account in place already (your A&L account).
If you go to the home page there is a whole section on reclaiming and also how to get a 25% pay rise, its really about making your money go further.

I don't profess to be a literary genius but I think that letter would be adequate. Hope it helps, anyway,

Gale

dsljfreeman

Hi Gale,
thanks for the draft letter, sounds great!

I've already posted a soa and reclaimed bank charges, so all up to date in that respect.

I will send the letter to Natwest and see what they say.

Laura x

GeorgeUK

No way i'm going to even try writing my own attempt. I'll just pinch one.

Dear Sir/Madam

Re: your reference :
Since making the above agreement with you, my circumstances have changed. I am unable to afford the agreed monthly repayments at the present time.

This is due to ........ give details of your personal circumstances which have led to the problems e.g. losing a job, income reduced, relationship breakdown, ill health etc.

I enclose a personal budget sheet which shows my present financial position. As you can see I have no money left to pay my credit commitments.

I view of my circumstances I ask that you accept a token offer of £1 per month to be reviewed in six months. I would also ask that you consider freezing interest and charges so that the debt does not increase further.

In order that I can make these payments easily, please forward a payment book/standing order/direct debit form (delete as appropriate)

I hope you will give kind consideration to my personal circumstances, and of course if my circumstances do improve I will contact you again.

I thank you for your attention to this matter, and I look forward to hearing from you soon.

Yours faithfully

source: http://www.insolvencyhelpline.co.uk/general_debt_advice/letters_to_creditors.htm

I would recommend getting advice before sending any such letter though. Not sure if this means a default will be put on your credit history that will stay there for 6 years. Could screw up your chances of getting credit until it falls off your record.

dsljfreeman

GeorgeUK wrote: »

No way i'm going to even try writing my own attempt. I'll just pinch one.


source: http://www.insolvencyhelpline.co.uk/general_debt_advice/letters_to_creditors.htm

I would recommend getting advice before sending any such letter though. Not sure if this means a default will be put on your credit history that will stay there for 6 years. Could screw up your chances of getting credit until it falls off your record.

thanks for your reply, our credit rating is shot anyway, not being able to get credit is only good news in our case.

Laura x