Threat of account closure

Hooty

Hi Guys,

I'm new to the forum so apologise if this scenario has been discussed before. Just wondered if you could offer some advice on this.

I have a Nat West account which over the last couple of years has incurred charges in excess of £3000. These snowballing penalties have pushed my account aprox £1000 over the agreed overdraft limit as I have not been able to pay them back and consequently incurr further charges. I had initiated reclaim prior to the test case but obviously this has been suspended.

Now Natwest have written to me threatening to default the account (which my credit file can ill afford) and persue legal action in recovering the overdraft and the additional balance. Is there anyway I can prevent this? I have spoken to them and explained that there is a reclaim pending which covers considerably more than the unauthorised balance but this has basically been dismissed.

Any advice would be very much appreciated and I thank you for your time.
Take Care
Hooty

nickmack

Hooty wrote: »

Any advice would be very much appreciated and I thank you for your time.

It's usually better to communicate by letter, this way you have a record.

Also, the person you spoke to, probably has little knowledge of the situation.

I would be inclined to write to them (recorded delivery of course!) and tell them they are in breach of the Banking Code if they register a default and quote the following:

13.6 We may give information to credit reference agencies about the personal debts you owe us if:
• you have fallen behind with your payments;
• the amount owed is not being disputed; and
• you have not made proposals we are satisfied with for repaying your debt, following our formal demand.

If they refuse to acknowledge this, you can contact the Financial Ombudsman who will look at the situation.

Hooty

Thank you Nickmack. I will do as you've suggested. Much appreciated.