Overdraft and can't pay fees?

[fleaboobash]

Firstly I must apologise if this is in the wrong section on this site.

Right, I had a £3000 overdraft with Natwest and it was right up to the limit. In May I phoned Natwest and spoke to them to see if there was any way that they could freeze my overdraft, remove it from my account so I could keep using the account on a day to day basis, and then I'd pay it back in small bits every week because I'm struggling to make ends meet and going to uni in September and waned to have an arrangemnt in place.

I don't know if I didn't make myself understood well enough or what, but the man I spoke to basically wanted me to make large payments to drastically cut my overdraft and therefore lower the monthly fee, but I cannot afford to do this and he did not say I would be able to have the overdraft removed like I wanted it.

 

I understand its in their interests to get as much back in one go but I've been a customer for years and got no joy from them.

As a consequence I've had to transfer all my direct debits and salary payments, tax credits etc into another basic Nationwide account because I cannot afford the fees for the overdraft.

 

Obviously they are going to come after me for the repayment of the overdraft and I want to pay it but the fees will now be mounting up as there is no money going in to that Natwest account. Can I get it frozen by sending them a letter or something? Debt puts the frighteners on me I don't think I could cope with bailliffs visiting or phoning at all hours. I just want to get something in place. Can anyone advise me?

 

Thanks in advance,

Lisa.

[miss muppet]

Well done FFB for thinking ahead and getting your parachute bank account in place. I am attaching a link to a discussion whether overdrafts are covered by CCA 1974, the link says that they are covered by section 10 of the CCA and you can find a copy of Consumer Credit Agreements 1974 in CAG Statutes library. You should also consider doing a Subject Access Request which will cost £10 postal order and you should not sign the request, template in the debt collectors library. Hope this helps:-

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/237096-overdrafts-covered-ccas.html

[fleaboobash]

Thanks for replying Miss Muppet

Forgive me if I sound thick but is it a good thing or a bad thing if overdrafts are covered by the CCA?

Also what will sending a subject access request do? Thats not meant to sound impertinent, i'm just ignorant of the terminology on here! Will that stop any more interest being added and allow me to pay it back bit by bit?

 

So, my next step is to send the SAR to Natwest then? Sorry, bet you regret repying to this one hey?!

[maroondevo52]

Hi,

 

You should write to your Bank and ask them to freeze interest ect, also arrange some sort of payment plan with them, you should be able to edit one of these letters to suit.................

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Regarding sending a Subject Access Request, I think you would be wasting a £10.

 

Bank overdrafts are covered by the CCA, they just have certain exemptions. Although a credit agreement on an overdraft would not look like a credit agreement on a credit card or loan.

 

Overdrafts have part V exemptions (form and content) from the Act. This does not mean that they are exempt from the Act. The credit agreement would be in the form of a letter from the bank stating the aount of credit, the APR, charges and cancellation rights. This type of agreement would not be signed by the debtor.

 

I really think the way to go is asking your Bank to freeze interest charges ect and explain your situation.

 

Regards.

 

Scott.

[fleaboobash]

Thanks for your reply. I did phone the bank and try to get them to freeze interest charegs etc but they were very unhelpful asking me to actually pay more than the amount I was ringing to say I couldn't afford to pay!

If I write to them are they likely to say ok no more charges you can pay off x amount a month until its paid off?

I'm VERY VERY scared that bailliffs will turn up at my door!

 

 

I've not actually heard anything from Natwest yet re my account, should I wait until I do before writing to them? My income is going to drastically reduce in August as I will be going to college, should I wait until then to arrange anything??

 

I really appreciate everyones help here. Thanks x

Edited June 6, 2010 by fleaboobash
had another thought!

[miss muppet]

FFB, Bailiffs are not going to turn up at your door. If Natwest took this to court the DJ would look at your circumstances and set things at a level you could afford. Think it would be best as has been suggested to write to them now as otherwise the overdraft will be going up but explain the situ to them i.e. that you will be at college etc. The reason for writing is also that you then have a paper trail if they won't play nicely and it shows how reasonable you have been.

[fleaboobash]

Thanks for that

Should I hold off on writing to them yet until they contact me? Surely it would be better to arrange a repayment plan when I have sorted out my outgoings as a student?

[fleaboobash]

Sorry to be a pain, but should I wait until they contact me?

[miss muppet]

Sorry FBB, been a bit busy last couple of days, have you decided what to do? The only drawback I can see in waiting is that the interest will be going up.

[fleaboobash]

Thanks I'll put pen to paper then!

[miss muppet]

No probs, let us know how you get on:)