Default Notices & Overdrafts

[bobbmar]

My bank has issued a default notice to give me a certain number of days to pay a certain amount of money. They did this just days after I issued court proceedings against them. Coincedence?

 

Anyway, I have paid the money requested within the time limit. Will this affect my credit rating in any way?

 

Also, I have an agreed overdraft limit with the bank I am suing. Can they just cancel this agreement? Does anybody know what the minimum notice period is that banks can give to terminate an overdraft agreement?

[BankFodder]

Could you let us know which bank. I'd like to move this thread there.

 

Default notice - retaliatory bullying

 

Credit rating? shouldn't be affected but do a credit check just in case. Do it now.

 

Cancel the agreement? yes they can

Notice - check their contract and the code but I would expect that they must give you reasonable notice.

Get a general complaint in about the level of your charges now and then move it to the Ombudsman as quickly as you can. This might protect you from further retaloiatory action as you would then also tell the ombudsman that these actions against you were calculated to disuade you from suing or from going to the Ombudsman.

[gothicf0rm]

looking at my contract with my bank they have to give 30 days notice. im guessing it varies from bank to bank, but to just issue a default without any prior notice is simply not cricket. if youre feeling really vindicitve after youve sued them successfully the first time go after them again for this. i suspect a court would take a very dim view of a bank trying to lock a claimants account simply because the claimant began legal action against the bank.

[Robertxc]

I suggest you write to them and refer them to section 13.6 of the Banking Code, which most UK banks claim to adhere to, but which they happily to ignore when it suits them.

 

13.6 states explicitly that they will not pass information to a credit reference agency "if the amount owed is in dispute".

 

Do not let them get away with this, it is straight forward coercion. Get a final response from them and then complain imediately to the Financial Ombudsman Service.

[bobbmar]

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