WIll Natwest help my brother?

Birminghamboy

HI, 

I am supporting my brother with some money issues - he is newly divorced and his finances have taken a battering. He has a Natwest Credit card that has a fairly high balance and high interest each month. He is struggling to pay. He is about the sell a property which will allow him to clear the debt but this could take several months. 

He has spoken to Natwest and has asked how they can help him, however they weren't very forthcoming. Do banks, such as Natwest have to offer support to struggling customers?

Mark_d

https://www.fca.org.uk/publications/good-and-poor-practice/delivering-vulnerable-customers

Banks should help but personally I wouldn't rely on them.  I've never found NatWest helpful in any way.

There are a number of organisations that can help and support with debt issues.  Perhaps get in touch with one of them. They'd be able to suggest how to reduce the amount of interest your brother's debt is accruing.

sourcrates

Banks are useless at such things, if he will have funds from a house sale in a few months, I don`t see a problem.

Debt collection is quite a slow process 6 months time they will still be sending letters, so just go with the flow and pay it when he can, its a non priority debt so no one will bother that much.

Birminghamboy

hi, 

I am still helping my brother sort his finance. Yesterday he had a default logged on his credit file by Newday/Debenhams. He is in arrears and we are working on this, however he has not received a default notice prior to this being logged on his credit file. He has called today ( i listened to the call) and the lady confirmed that there is no record of a default notice being sent. My argument is that by not sending the required notice, he wasn't given the opportunity to remedy the breach - again, there is not dispute over the arrears but surely that have to follow the guidelines?

sourcrates

This is what the FCA has to say on the subject:

"Where a default notice is required under the CCA, failure to serve a valid notice (or to wait the required period before taking action) would be a breach of the CCA. If payment is taken, contrary to section 87, the borrower or guarantor may have a cause of action against the lender."

You (he) can complain if you wish, could he have remedied the breach within 14 days, had he received a compliant default notice?

If not, a default would be preferable to an "arrangement to pay marker".

AP markers stay on file 6 years after the debt is repaid, a default will be gone in 6 years regardless of what happens.

Birminghamboy

sourcrates said:

This is what the FCA has to say on the subject:

"Where a default notice is required under the CCA, failure to serve a valid notice (or to wait the required period before taking action) would be a breach of the CCA. If payment is taken, contrary to section 87, the borrower or guarantor may have a cause of action against the lender."

You (he) can complain if you wish, could he have remedied the breach within 14 days, had he received a compliant default notice?

If not, a default would be preferable to an "arrangement to pay marker".

AP markers stay on file 6 years after the debt is repaid, a default will be gone in 6 years regardless of what happens.

Thank you - yes he could have remedied it as it's not a huge amount. I would have paid it for him if necessary. It just feels like the choice has been taken away. We intend to propose that they remove the default and he ( well I) will clear the balance in full - do we have much chance of this happening?

sourcrates

Removing a default is impossible, its like putting back together a pane of glass once you have smashed it!!

What they may do, if you are successful, is remove the account from his file altogether, then there would be the question of the debt, they have the option of having him repay it at an affordable rate, they could sell it, or they could write it off.

No down side to making a complaint.

Rob5342

sourcrates said:

Removing a default is impossible, its like putting back together a pane of glass once you have smashed it!!

Are you sure? The Nationwide entry on my credit report used to have a default on it, but they removed it when I won an affordability complaint and now it just shows green ticks for the whole period. 

sourcrates

Rob5342 said:

sourcrates said:

Removing a default is impossible, its like putting back together a pane of glass once you have smashed it!!

Are you sure? The Nationwide entry on my credit report used to have a default on it, but they removed it when I won an affordability complaint and now it just shows green ticks for the whole period. 

Then I stand corrected, it used to be the whole entry was removed, but it may depend on the company concerned as to what action gets taken, instead of a blanket approach.

fatbelly

No downside in making a formal complaint, and referring it to FOS if you are not satisfied with the response

Birminghamboy

fatbelly said:

No downside in making a formal complaint, and referring it to FOS if you are not satisfied with the response

Thank you. Is it likely they’d uphold it given that they’ve admitted that no default notice was sent?