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  • FIRST POST
    MamaB
    Default Notice for Early payment
    • #1
    • 16th Nov 12, 8:24 PM
    Default Notice for Early payment 16th Nov 12 at 8:24 PM
    I'm not entirely sure this is even Legal, but Natwest bank have issued (well, skipped the default notice, actually) a termination of account letter because i paid early! I have a payment plan that Natwest have agreed to and i have stuck to religiously and because i have been paying two or three weeks early, according to the Natwest representative, does not class as a payment because the computer does not recognise it as a payment. Is this Legal and what do i do about it? I have not missed one payment since 2009.
Page 1
    • McKneff
    • By McKneff 16th Nov 12, 8:38 PM
    • 36,652 Posts
    • 47,266 Thanks
    McKneff
    • #2
    • 16th Nov 12, 8:38 PM
    • #2
    • 16th Nov 12, 8:38 PM
    Is this a credit card you are talking about.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • MamaB
    • #3
    • 16th Nov 12, 8:39 PM
    • #3
    • 16th Nov 12, 8:39 PM
    no it was a current bank account
    • McKneff
    • By McKneff 16th Nov 12, 8:53 PM
    • 36,652 Posts
    • 47,266 Thanks
    McKneff
    • #4
    • 16th Nov 12, 8:53 PM
    • #4
    • 16th Nov 12, 8:53 PM
    So you owed them money re an overdraft, am I right?
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • MamaB
    • #5
    • 16th Nov 12, 9:00 PM
    • #5
    • 16th Nov 12, 9:00 PM
    well, it was a current account with an overdraft but CAB arranged a payment plan that Natwest had agreed to to settle the account over time. It can only be paid into now, which is fine.
    • McKneff
    • By McKneff 16th Nov 12, 9:10 PM
    • 36,652 Posts
    • 47,266 Thanks
    McKneff
    • #6
    • 16th Nov 12, 9:10 PM
    • #6
    • 16th Nov 12, 9:10 PM
    If it works the same as payments to a credit card, the problem is is that you are paying it too early.
    The computer is set to take payments within a certain period. You have presumably paid the first month, then the next one early so the computer says yu paid it twice in one month, consequently all the other payments which you think have been early have in fact been allocated to the following month.

    Speak to them again, nicely, they may waive the charge if its a first offence. In future, set up a dd to pay it on time so it is allocated in the correct month, otherwise you will find the same thing happens again.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • CAB Swansea Bay representative
    • #7
    • 19th Nov 12, 9:42 AM
    • #7
    • 19th Nov 12, 9:42 AM
    Hi MamaB, thank you for your query re default notice
    I am presuming from your post that you have been in financial difficulties and negotiated reduced repayment offers for your debts with the help of the CAB. These are informal agreements and often do not stop the usual collection cycle so after x number of months of the account being dormant and only the minimum payments being made the account will often default and close and the account be transferred to the bank's collection department to set up a longer term repayment plan. If the bank has charged you for the default or said it has cancelled the payment arrangement because if this payment being made early then you could consider making a complaint and taking it to the Financial Ombusdman Service but a bank has the right to end it's relationship with you at any time (as long as they provide notice) and the CAB adviser you saw should have warned you that entering into a reduced payment plan with you creditors can damage your credit rating, although not as badly as doing nothing and making no payments to your debts which would often end up in a CCJ. I would suggest that you continue to make the agreed repayments and if the bank refuses to accept them I would suggest you send them a new financial statement or budget. You can find more information about negotiating repayment arrangements with creditors at www.adviceguide.org.uk
    Hope this is of assistance.
    ďOfficial CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe Iíve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
  • CAB National Representative
    • #8
    • 19th Nov 12, 9:43 AM
    • #8
    • 19th Nov 12, 9:43 AM
    I'm not entirely sure this is even Legal, but Natwest bank have issued (well, skipped the default notice, actually) a termination of account letter because i paid early! I have a payment plan that Natwest have agreed to and i have stuck to religiously and because i have been paying two or three weeks early, according to the Natwest representative, does not class as a payment because the computer does not recognise it as a payment. Is this Legal and what do i do about it? I have not missed one payment since 2009.
    Originally posted by MamaB
    Hi MamaB - as you arranged a payment plan with your CAB, we'd recommend talking to them about this and seeing if they can help - especially as you've not missed any of the payments.
    ďOfficial CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe Iíve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
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