Overdrawn account (Westcot)

If an account is sent to a collection company is it automatically closed. It's no longer showing in the app. Is there any chance of reopening once the debit has been repaid.
Come on you Irons

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  • grumbler
    grumbler Posts: 58,629
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    edited 17 December 2023 at 11:21AM
    I think it gets closed and, IMO, the chance is slim, but I'm no expert. With a default in your credit files you are likely to struggle to get a normal current account with many other providers, let alone the original one.
    However, AFAIK, 'settled' record in your files is better than just 'default'.
  • fatbelly
    fatbelly Posts: 20,240
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    Plenty of fish in the current account sea
  • born_again
    born_again Posts: 13,680
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    Zinger549 said:
    If an account is sent to a collection company is it automatically closed. It's no longer showing in the app. Is there any chance of reopening once the debit has been repaid.
    Yes. As a rule.
    Chance of them allowing you to reopen account. Zero. maybe in a few years, they may allow you back, or not depending on how they view the situation.
    Life in the slow lane
  • PaulW922
    PaulW922 Posts: 1,035
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    grumbler said:
    I think it gets closed and, IMO, the chance is slim, but I'm no expert. With a default in your credit files you are likely to struggle to get a normal current account with many other providers, let alone the original one.
    However, AFAIK, 'settled' record in your files is better than just 'default'.
    settled is indeed better. Unfortunately, once it is shown as defaulted that will not change even if settled. You can get the amount outstanding updated (to aero) but that is all. 
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