£16k bargaining tool

Night-owl_6

Captain_Mainwaring wrote: »

Clearly not.

So for £50 a month more, Natwest were prepared to stop the interest and you didn't go for it?

In your situation I'd tend to try and use the 16K to come to a settlement with Natwest and your other creditor - I wouldn't want the knocks on the door and the worry, as they will get you in the end, £35K is not small change, and you may end up losing the 16K all for nothing.

This is a good point.
You could go along and see Natwest and see if they could offer you a repayment plan, or some banks, if you push for it will cut you a deal, say if you owe £20.000 and you fail to repay and after a while they have had no payments, then then sometime are willing to offer a cut price, a lump sum to write the debt off, so in the case of £20.000 they may accept as little as £5.000 so long as payment is made in full and within a set time; however you normally have to wait till they are considering legal action as they dont want to incurr themselves more fees.
If you pay them off, maybe they would offer you an account?!

immortalpirate

Captain_Mainwaring wrote: »

Clearly not.

So for £50 a month more, Natwest were prepared to stop the interest and you didn't go for it?

In your situation I'd tend to try and use the 16K to come to a settlement with Natwest and your other creditor - I wouldn't want the knocks on the door and the worry, as they will get you in the end, £35K is not small change, and you may end up losing the 16K all for nothing.

I didnt go for it as £250 would have wiped out my disposible income every month, and £300 was impossible.

PROLIANT

Captain_Mainwaring wrote: »

Are banks allowed to make periodic credit checks? and if so would they see a new account being opened at another bank?

They cant revoke the facility once it is opened, if bank A tells bank B that you have defaults etc they would be in breach of the Data protection act, this is a no no, if it was bankruptcy then that is a different matter.

Captain_Mainwaring_2

Why did you borrow £35K in the first place?

Seems you are going to lose the £16K so you may as well use it wisely by getting rid of at least some of the debt. I promise you that you will feel better if you do.

Night-owl_6

storminbalder wrote: »

I don't mean to be argumentative. But much of the advice given to the original poster is wrong.

Many current accounts (basic ones as a rule) are not credit scored.

Infact you can even have a debit card as a bankrupt (Co-Op).

My credit rating could not be worse and I'm with Yorkshire Bank (a Maestro card). I know they don't credit check. They will run an identity check and make sure you are not curently bankrupy or in cases of fraud, but that's it.

On the other hand Nationwide are notoriously on the cautious side mind you.

My advice is make sure you're on the electoral roll, and you will have an abundance of choice.

I am only advising on my knowledge.
I know when I applied for an Abbey Basic a few months ago a credit check was carried out as well as an ID check on my report.
I also know that Barclasy credit check for cashcard accounts.
I was only advising on my knowledge, it may however be that some banks dont credit check you for a basic but most high street ones will, they check to see if you have any outstanding debt with that bank first, then for bankrupcy and fraud and for ID purposes, they also like to check how much credit your currently have.

Captain_Mainwaring_2

PROLIANT wrote: »

They cant revoke the facility once it is opened, if bank A tells bank B that you have defaults etc they would be in breach of the Data protection act, this is a no no, if it was bankruptcy then that is a different matter.

I though a bank could tell you to sling your hook without giving any reason?

I'm talking about Natwest doing a credit check on our friend prior to maybe bankrupting him say, then seeing the account at another bank on the credit history, then garnishee whatever is in that account after getting an order.

I'd also be careful of getting into trouble with the money laundering act.

Night-owl_6

Captain_Mainwaring wrote: »

I though a bank could tell you to sling your hook without giving any reason?

I'm talking about Natwest doing a credit check on our friend prior to maybe bankrupting him say, then seeing the account at another bank on the credit history, then garnishee whatever is in that account after getting an order.

I'd also be careful of getting into trouble with the money laundering act.

Who said anything about getting into trouble with the bank?!
It was merely an example that bank A cannot tell bank B only if its bankrupcy order, Proliant merely stated an example.

Captain_Mainwaring_2

Night-owl wrote: »

Who said anything about getting into trouble with the bank?!
It was merely an example that bank A cannot tell bank B only if its bankrupcy order, Proliant merely stated an example.

And who said anything about one bank telling another? If I credit check you I may see that you have a number of current accounts, I then get judgement for the amount owing, then garnishee all funds in all accounts?

Or I suppose that Natwest could simply bankrupt him, then they would all get a bite of the 16K after petition costs etc?

PROLIANT

Captain_Mainwaring wrote: »

And who said anything about one bank telling another? If I credit check you I may see that you have a number of current accounts, I then get judgement for the amount owing, then garnishee all funds in all accounts?

Or I suppose that Natwest could simply bankrupt him, then they would all get a bite of the 16K after petition costs etc?

That is border line theft, other banks cant just dip another account like that, maybe in the circumstances of bankruptcy however the OP has not indicated that he wants bankruptcy yet and I don’t think a bank would want to force him into it because they stand to lose a canny bit of money that way, the solution to the problem would be a payment plan, say freeze interest on accounts and give the person time to pay off the debt.

Night-owl_6

PROLIANT wrote: »

That is border line theft, other banks cant just dip another account like that, maybe in the circumstances of bankruptcy however the OP has not indicated that he wants bankruptcy yet and I don’t think a bank would want to force him into it because they stand to lose a canny bit of money that way, the solution to the problem would be a payment plan, say freeze interest on accounts and give the person time to pay off the debt.

My point completely:p