Would putting your account in default stop the interest?

[Taormina]

Hi there,

 

A brief summary of our situation, we live in NZ and have accounts with a lloyds (2 credits, 2 overdrafts) we have tried our best to sort this but the interest is like killing us. We do not and can not make a dent with what they are putting on the accounts. The bank will not accept the reduce payments offer. We also find to transfer 1 pound from here impossible - it would cost us a $100 to do this for all 4 accounts.

 

Anyway, we want to get this sorted, but are running out of options, I was reading that putting the account in default either by claiming bank charges OR a CCA might stop the interest from accumalating am I right in thking this? Any other suggestions would be useful?

 

LLoyds of course are not being at all helpful and have referred our accounts to one of there DCA's, who are particually snotty and have started sending us yellow postcards. I know they cant really do anything to us here and we could if we wanted to ignore them, but we do want to tidy this up.

 

Any advice would be good

[Taormina]

If we could stop the interest then we would start making payments every 3 months and might get rid of them in a couple of years.

[Taormina]

Anyone?

[Undercover-Elsa]

Hi Taormina and welcome to CAG

Sorry you've had to wait for a response, seems a bit quiet at the moment.

I was going to refer you to the sticky on Australian ex pat debt, but I see you've found it already, which is good as many of the same principles will apply, as far as I'm aware.

Your situation highlights just how shabbily the banks treat you even when you try and do the right thing to sort it out.

In view of their unhelpfulness and the fact that a large part of this debt is probably chages and interest by now, many people would be tempted to stop paying, ignore them and set the Statute Barred clock ticking!From what I can gather, unless they got a CCJ against you whilst you were still a UK resident, there's little they can do except pester you.

However, if you feel you want to tackle them, your suggestion of sending a CCA (for the cards) and SAR for the OD is another route. I'd head the letters "I do not acknowledge this Debt" from now on too. If you send a SAR you can include ALL the accounts for the one fee, as it's the same bank.There may be addition charges for postage, in view of your location, others may know about that.

All the best,

Elsa x

[Taormina]

Hi Elsa,

 

Thanks for your help. You are right, I would have to say that the amount has actaully doubled with interest and charges. We both have spoken to countless people, within lloyds, written letters asking for a personal reponse etc. to no effect, we have however been rewarded with is a snotty phone call from Allied and loads of threatening letters and latest a fab yellow postcard with a load of the same old rubbish - pay up or else... !

 

We have spoken to CCCS and debt line and we have tried to do the right thing, but I am blown away by the unhelpful and snotty attitude by the bank.

 

Oh well Ill get the letters done. Thanks again!

[Undercover-Elsa]

Hi,

Make a note of the last payment date or last time you acknowledged the debt in writing, as the Statute Barred clock starts ticking then...

Don't forget to head the letters I do not acknowledge this debt, and check any letters you send for wording. Eg, don't put please send me details about my account number xxx. Instead put please send me details about the account ref xxx.....etc

It's all hypothetical anyway as they cannot legally enforce, from what I've read. Which is precisely why they get so aggressively pushy.

What are they threatening to do if you don't pay?

Elsa x

[Taormina]

hmmmmm, what else have they threaten us with..? Funny really, nothing jumps out as it doesnt nothing that really counts. They dont have a CCJ against us. They threaten Possible legal action in the UK.. thats in the uk not NZ.

[Undercover-Elsa]

LOL they'd like you to believe they could do that but I think we know differently

[3tea]

Taormina,

 

I picked up this thread via you response to me on the Australia thread.

 

I have been looking for someone else in NZ in the same mire as me, and it seems you are!

 

I got a bit worried with the Australia problem, but it seems that sense has prevailed, which is encouraging if a DCA trys the same trick here.

 

My VEDA file seems ok at the moment so am not too worried at present.

 

Getting back to your problem, I was wondering if you had made sure that the bank has an address for you in NZ, and you weren't getting your yellow snottogrammes redirected from a UK address?

 

The only reson I ask, is that if you still have all of your accounts at a UK address, then it is entirely possible they will get a CCJ against you by default at your old UK address.

 

If they do, it's possible (although unlikely due to cost) for them to transfer it to NZ and legally chase you for it.

A CCJ can be set aside, but it's a pain to do, and you would hve to prove when you got to NZ, and of course, being the UK it will cost you loads too!!

[Taormina]

Hi 3tea - I am glad you posted I saw you as well and wondered whether I should send you a P.M.

 

to answer you question, the bank knows exactly where we are, we changed our address to here and gave them our numbers. We were totally upfront, we even went in beofre we left and asked the directly to either a. freeze the interest OR let us come up with a realistic payment plan. The bank manager, just shook their heads... Said it was impossible! Oh well there loss I guess.

 

We have had a recent letter from a UK DCA titled "Out of Court Settlement" but its filled with the same rubbish and threats as all the other letters.