Confused about Bank of Scotland Recoveries Team and letters I have

crazyshady · 14 July 2017 at 9:17PM

Back in March my minimum payment for the credit card I have with the Bank of Scotland became too much to manage and speaking to their Collections Centre they made an agreement with me to pay the previous payments I was making which was £60 and I think the minimum payment was around £54 so it wasn't a lot extra I know. The woman on the phone went through everything, every bill I was paying, how much money was coming in and out and she said to me that from now on the interest would be frozen and there would be a long term agreement for me to pay £60 per month and everytime I paid that money it would be taken off what was left to be paid. They would have to default my card and I agreed to that.

I then got another letter about a month in telling me everything that was agreed on the phone, I made a phone call just to go over it again and my card had not been defaulted yet and it had not been sent to the Bank of Scotland recoveries team.

I then got a letter last month saying that we agreed you were in financial difficulties and for the last 2 months you have been able to make paytments for the contractual monthly amount or more as required in the terms and conditions and that 8 weeks from this letter they wont need to pass the account to Recoveries team which would have resulted in them registering a default on me wiht the Credit Reference Agencies we subscribe to. They then say even though they wont do this I will no longer be able to use the card anyway and the agreement between me and the bank will be ended.

So everything will go back to being nearly £80 per month again and not only that I can't use the card, which is fine, the card hasn't been used in 6 years but I made a phone call tonight to say that the original agreement made on the phone back in March was £60 per month and the interest was frozen and the woman told me there is no time limit, if it takes a year or two to clear that is fine as long as I pay the £60 on the specified day each month. I was so happy with that arrangement but tonight the words Recoveries Team and EXTERNAL DEBT COLLECTION kept getting brought up and brought up and that worries me because it makes me think about people coming to the house and wanting money. I just said I was happy with the original agreement and all the phone calls until tonight were positive, the people on the other end were so helpful and told me not to worry and nothing like that would happen to me and they were happy to get the £60 per month and every month it would keep clearing off my account.

I was then told to pay £5 or £10 only because their system has sent out this letter and the system thinks I can pay the minimum amount. I said I can't afford the nearly £80 it went to earlier this year, I was so happy that they told me I could pay £60 per month with the interest frozen, I wish I'd done it a year ago because of the stress it would have saved me. She says just pay £5 or £10 and then it will end up in the Recoveries Team or an External Debt Collection. I don't want this causing any issues either but the last few people I spoke to were in Scotland and I think because they could understand my accent they could talk better with me but tonight I felt as if I was getting panicky again and they just repeated the same phrase over and over to me. I don't feel as if I'm any further forward and I don't have any confidence in being told to just pay £5 or £10 instead of the £60. I want someone to tell me on the phone it's ok, we will sort it for you and everything will be fine if you keep the payments up rather than me relying on the computer system.

Does anyone have any experience of this? Does anyone have experience of the Recoveries Team or the External Debt Collection they talked about tonight? I was so happy with the phone call back in March. I've got a bank account with them too and they never said I had to close that down or anything, they sympathised me. I've been so stress free since March, so happy at paying £60 per month and being told not to worry, no one is coming to my door, the balance will just clear month by month because no interest is being added and now I don't know what to make of this. And I can't get that conversation out of my mind from March, I don't know if they have a recording of it but the woman said to me, there is no time limit, it's not a case of me paying back within the year or clearing it off in 2 years, no time limit, £60 per month, I couldn't believe how helpful she was. I had no idea this would happen. And another thing I was told tonight. If it gets defaulted I will be recieving letters on the first of every month because of it but to ignore them as they are normal to recieve.

What do I do? I just want to talk to someone that I can explain myself to and hopefully can be like the first few women I spoke to and tell me it's OK don't worry just keep paying the £60 and all will be fine. All this talk of it either stays in their Recoveries Team OR......OR External Debt Collections just worries me. I've never dealt with this in my life. And because that was the Collections Centre I called, they can't say what will happen, in other words I can't talk to the Recoveries Team. I just want the original March phone call to be help up. The original agreement. It's just worrying or am I worrying over nothing? I don't know what to do. Do i pay £60? Do I just pay £10?

brendon · 14 July 2017 at 9:39PM

In either situation - whether you are paying the minimum payment or £20 less - it does not solve the problem. It sounds like this situation has been going on for some time, so I think you should seek advice from a charity like Step Change. They should be able to negotiate with the bank on your behalf and set up a debt management plan.

the woman told me there is no time limit, if it takes a year or two to clear that is fine

Unless there is something exceptional, a minimum payment on a credit card will take more than 2 years to clear. More like 20-25 years.

crazyshady · 14 July 2017 at 9:53PM

You don't understand what I mean. When she said to make the minimum payment and it not having a time limit, she was meaning while the interest is frozen so every month I pay £60, the balance drops £60, no interest is added or taken from that £60 so if I pay £60 per month for a year that would be £720 off the balance whereas before the minimum payment was I think £75 and most of that was just paying interest, very little of that actually cleared the balance.

As you can see £720 per year at £60 per month is a big difference compared to £75 per month and maybe £30 of it actually clearing the balance.

And it was me that said a year or two because right now I have the balance under £2000 so it was me that said If things stayed the way they are I could have it cleared within a few years and obviously pay extra when I can.

boo_star · 14 July 2017 at 10:35PM

Having worked in a bank (not BoS) I have some experience of this kind of situation.

The advice you were given to pay £5 a month or so seems to be roughly in line with my experience at a different bank, that being that they can't default you until you are actually in default.

As to people turning up at your door, that is incredibly unlikely to happen, even when DCAs are involved. It's expensive and not particularly effective as all you need to do is shut the door in their face.

Edit: If the agreement is intact, despite the letters, then there is really nothing to worry about and no reason to force a default. It's a bit annoying to keep getting them but you'll soon get into the habit of putting them in the recycling bin without giving them a second thought.

crazyshady · 14 July 2017 at 10:51PM

Thanks for the replies.

Boo I've never dealt with anything like this. This debt accumulated in interest because I was no longer able to work and became carer for a family member so I can't work full time to bring enough money in to clear it. I keep going back to this conversation in March but it really was great and they told me that there was no time limit, everything I paid would go towards clearing the balance and the card would be defaulted.

I just wish it would stay like that. By all means stop the account. The card hasn't been used in years and will never be used again but I just wanted to keep paying the £60 every month and extra when I can through help of family members and like I said the amount is now under £2000, I could have it cleared within a few years I'm sure.

It's just there's nothing specific. The letter says everything will go back to normal within 8 weeks of the date on the letter so there's not even a specific date on that. From the phone call in March the woman did say to me if I noticed any kind of interest being charged I was to phone them right away and they would deal it.

Basically what I'm saying is that since March I have been told twice on the phone in a nice way, keep doing what I'm doing, keep paying the £60 each money and any extra I can afford and everything will be fine and the impression I was given was that I am dealing with the bank. It's only been tonight that External Debt Collections have been mentioned, they did say Recoveries Team OR External Debt Collections. I did think that it was the Recoveries Team that made this deal with me and it says CONTRACTUAL payments. This was all agreed back in March and I don't want it to change. I just don't want people coming to my door and trying to get the money through other means. Why wasn't that mentioned in March? I can't get over how helpful that person was and then again a month later with the other woman and I'm not saying the woman tonight was cheeky but it was hard to have a proper conversation and I had to read the letter out. I thought they would have had everything on my account on their screen right away. She gave the impression this is nothing they have personally done, it's the computer system that's sent the letter out and made this decision.

So you think I should just pay £5? Even though It was all agreed in March to pay £60? I don't mean anything bad towards the woman tonight or you but I just want someone to just be completely clear with me on what to do.

boo_star · 14 July 2017 at 11:17PM

I'd keep paying the £60 and if they actually charge you interest then call them and get it removed.

As far as recoveries go I can't speak for BoS but in the bank I worked for recoveries was the department after collections. It was the last department before the debt was sold on to a DCA or they went for legal action (which was fairly rare.). It's nothing to be worried about though, they'd almost certainly not deal with an undefaulted debt in the recoveries department.

And to reiterate, nobody is going to visit your home. The banks aren't going to waste money on it as it's largely ineffective. A DCA might (although it's very unlikely too) but you're nowhere near that stage.

crazyshady · 14 July 2017 at 11:26PM

Thankyou for putting my mind at ease.

The way it was worded tonight was Recoveries Team or External Debt Collection. It was worded in a way that it came across it's either gonna go to one or the other but the way you explain it, it means Recoveries Team is where it's likely to go.

I don't want it to get to that stage where people come to the door, I just wish what I agreed to in March was still in place which was they agreed to freeze the interest until the balance was cleared. I have it at under 2 grand just now, which I know is not a lot of money for some people but it's a lot to me and if I paid £60 per month that would mean £720 per year off that balance and when family members can help me, the extra £5 or £10 per month too. They didn't say 2 years to me, I said that myself, I think I could clear it all off within 2 years.

Can you tell me why the Recoveries department would sell a debt on to a DCA? Would they be likely to do that with me even though the agreement in March has been adhered to and I've never missed a payment and have paid extra when I could?

boo_star · 14 July 2017 at 11:31PM

crazyshady wrote: »

Thankyou for putting my mind at ease.

The way it was worded tonight was Recoveries Team or External Debt Collection. It was worded in a way that it came across it's either gonna go to one or the other but the way you explain it, it means Recoveries Team is where it's likely to go.

I don't want it to get to that stage where people come to the door, I just wish what I agreed to in March was still in place which was they agreed to freeze the interest until the balance was cleared. I have it at under 2 grand just now, which I know is not a lot of money for some people but it's a lot to me and if I paid £60 per month that would mean £720 per year off that balance and when family members can help me, the extra £5 or £10 per month too. They didn't say 2 years to me, I said that myself, I think I could clear it all off within 2 years.

Can you tell me why the Recoveries department would sell a debt on to a DCA? Would they be likely to do that with me even though the agreement in March has been adhered to and I've never missed a payment and have paid extra when I could?

They typically do it when they're getting nowhere with the customer. In other words they're not paying. They essentially give up and sell it for pennies in the pound.

crazyshady · 14 July 2017 at 11:34PM

Thank you for that. I am paying so I hope the arrangement I have continues.

crazyshady · 20 July 2017 at 3:37PM

I have received a letter today saying my account is being transferred to the Recoveries Team.

As agreed, due to your financial situation we are passing this account to our Recoveries Team. Whilst we pass your account to our Recoveries Team, as a temporary concession we will not charge any further interest on your outstanding balance. This does not affect any interest charges that you have already accrued. When your account is passed to our Recoveries team no further fees, interest or charges will be applied.

The transfer will be completed around two months from the date of this letter provided your account is still in arrears. This gives us enough time to send letters which we have to send you, such as the Formal Demand. It also allows time should your financial circumstances improve.

Further Letters. Before we transfer your account to our Recoveries Team we will send you a Default Notice and then a Formal Demand, if you have not already received these letters. You do not need tor respond to these letters unless your financial situation changes and you are able to increase your payments.

Can you explain what this means? One one hand it says the stopping of fees and interest is a temporary concession, then it says once the account is passed to the Recoveries Team no further fees, interest or charges will be applied. Should I keep paying the £60 as agreed from the very beginning in March or make another phone call and inquire about it because the payment is due tomorrow and I want to make sure I do everything correct. From the way the letter reads I should just keep doing the same as I already have but I don't know if this letter is like the last one.....which I was told was a computer generated letter that their system created or if it's a result of that phone call I had the other day.

crazyshady · 23 June 2018 at 12:43AM

I had to bump this thread up as I have had a new development. Around March this year I noticed I was being charged interest on my credit card. I then looked at previous statements and noticed it had happened in February too I called them as last March when the agreement was made I was told that if any interest was added to call right away and it would be changed. When I called they apologized and said the interest would be refunded and taken off the balance. They also said that because I had been making the minimum payment that meant their systems had thought everything was back to normal and was charging me interest again. They said do not pay anything for 65 days to let the account go to collections and then I would continue paying the £60 on the 21st of every month as per the agreement and I wouldn't be charged interest again and the money I pay every month would reduce the balance until it was cleared.

So so far that is 62 days I think today (Sunday) and I called them earlier tonight. The reason being I had a letter at the end of may saying the account was in arrears for £20. Now since March last year when the agreement was to continue paying £60 per month, the only statement always said minimum payment £20 for whatever reason. I always paid £60. About a week later I got a letter saying DEFAULT NOTICE. I was told on the phone way back in March last year these letters would come but for reasons unknown to me it's taken a year for it to happen. They told me on the phone in March these letters would be arriving and it's standard practice for them to be sent out. The reason I called tonight was on the Default Notice letter it said that I was in arrears of £20 and that a payment had to be made by the 24th June. The 24th June is not 65 days after my last payment in April so I wanted to know what to do. The letter also said that if this payment is not made by the 24th June that they can request a payment of the FULL amount and that they MAY take further action against me.

One of the things they say is if your ' account conditions allow, we may also transfer money from any other accounts you have with us to reduce the outstanding debt'.

I was worried that they would take money from my current account with them to pay towards the credit card debt but the person I spoke to says that would not happen as per the agreement on the account. I have to trust them and want to trust them but is that correct? I kept mentioning on the phone to the Collections department about the agreement made in March 2017 and they did say to me that what I said was correct, £60 per month, no further interest being charged and keep paying until the balance is cleared. I've mentioned that in every phone call and it's been confirmed back to me every time.

What they did keep saying to me tonight was the account has to close and for that to happen the 65 days has to pass and he said the letter that I got also gets given to people that haven't paid anything in 4 months. I again repeated that the part that worries me is the part that says the bank can go into your other accounts and take money from them to reduce the balance on what you owe and he again said to me that wouldn't happen with your account because of the agreement on your account.

Do you think everything is going to be OK? I am glad that the agreement I made over a year ago in March 2017 has been confirmed so many times to me over the phone, do they keep logs of calls? They should have notes on their systems of everything said in the call too. The one thing I couldn't understand was the original agreement was the interest was frozen, I said I could agree to keep paying £60 per month on the 21st, they told me last year within 3 months I would be getting a default notice and the account closed. The account did close, I can't use it anymore but this is the first time I'm getting the Default Notice. The person I spoke to tonight says when the account closes I will no longer see the account via online banking so any payments made will have to be done by standing order or going into the branch and paying, I said I am happy paying in the branch but am I over reacting about all this?

Also another thing and it may seem minor, on the other letter before the default notice it says when they register the default notice on your account it is viewable by credit agencies for 6 years or until the payment is cleared. I always thought it was 6 years regardless but it says on the letter for 6 years or until the payment is cleared. If I keep paying what I am just now it will be cleared by next year so does that mean next year when this is all paid I wont have that mark on my credit file for 6 years? The person I spoke to tonight also mentioned about having it for 6 years but he never said it would go away if I clear the card before the 6 years is up? I was just curious about that.

Confused about Bank of Scotland Recoveries Team and letters I have

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