NatWest closed my account with overdraft outstanding, now can't pay from US.

[asdfgq]

I am American and moved back primarily to the USA from the UK where I left some small debts that I couldn't afford to completely pay off.

 

NatWest closed my account for no reason and have been quite rude when trying to arrange a payment plan. I kept a registered address and recently updated it with them and they made no mention my account was being closed. They claimed I was given 60 days notice. I received nothing. I have about 900 in overdraft debt and no way to pay it off since I don't have a bank account now, and they won't even call or mail me in the USA to tell me what to do.

 

They kept my credit card account open for some reason (maxed at 1k but current with payments every month), but my bank account has been closed and I have no way now to pay either despite having a couple hundred pounds a month income there still.

 

What are my options? The amount of money is small, but I am broke. I could very easily not return to the UK and end my residence there and ignore them.

 

I don't think it is fair to be very rude with someone who has acted in good faith for 7 years and never missed a payment or had a problem. They are ignoring me and giving me the runaround.

 

Should I just ignore it and then in 6 years be off the hook? I know they can sell the debt to a US DCA, but I know this genre of law well in the USA, and they won't get a cent.

 

It seems silly over $3k, but how can I pay if I don't have a bank account and I'm abroad? I'm not looking for the moral high ground, they already made me not care, but for so little money it might be worth it to settle, especially if my life plans change and I am back in the UK.

[cerberusalert]

Well if they won't provide a faciility for you to pay them then it's there loss.

 

To be honest it sounds as if they're in the process of selling the debt to a debt collection company & in order to do that and then claim a tax loss they have to close the a/c. they will very likely close the credit card a/c shortly too.

[asdfgq]

Well if they won't provide a faciility for you to pay them then it's there loss.

 

To be honest it sounds as if they're in the process of selling the debt to a debt collection company & in order to do that and then claim a tax loss they have to close the a/c. they will very likely close the credit card a/c shortly too.

 

 

They would just instantly send to collections after closing my account with no notice? Would that make the debt unenforceable under the 1974 act? My account was current and in good standing until this.

 

Also, what are the chances Lloyd's closes my credit card account (1800 outstanding) and bank account (bank account with no money, but no debt)? I just have no idea how I am supposed to pay if there is no account to track or send money to.

 

Also, do they go to the trouble of alternative service to get a CCJ if I am out of the country?

 

If I am going to ruin my UK credit, should I just go all the way and forget all? I am torn because if I am going to get a default judgment, what does a second one matter if they can't collect?

 

I paid off my remaining contracts (phone and internet) today via a friend so I have that as not a worry because I don't think I will be back since my wife can't get a UK residence visa easily since I never applied for settlement.

[cerberusalert]

They would just instantly send to collections after closing my account with no notice? Would that make the debt unenforceable under the 1974 act? My account was current and in good standing until this.

they normally just send a letter telling you they're closing the a/c & if there are any arrears also a default notice giving you 14 days to remedy. If there are still any outstanding monies due they would then send a letter of assignment telling you the debt has been passed to a debt collector although normally it's first passed to their in-house collection arm which in Natwest's case is Triton. Same company different hat.

 

Also, what are the chances Lloyd's closes my credit card account (1800 outstanding) and bank account (bank account with no money, but no debt)? I just have no idea how I am supposed to pay if there is no account to track or send money to.

There is a high chance they'll close it, also they have the right to 'offset' which means they can take money from one a/c to pay another so if your current a/c was set up to pay your credit card theoretically they can still take money from it making you overdrawn if you have insufficient funds thus making you incur further charges.

 

Also, do they go to the trouble of alternative service to get a CCJ if I am out of the country?

A CCJ cannot be obtained against a non-UK resident. if you can prove you were out of the country at the time you have an absolute defence to have it set-aside.

If I am going to ruin my UK credit, should I just go all the way and forget all? I am torn because if I am going to get a default judgment, what does a second one matter if they can't collect?

Any default judgment can be set-aside.

 

As you know it's extremely difficult for them to pursue in the US, see; http://www.consumeractiongroup.co.uk/forum/showthread.php?282263-UK-Debt-Living-in-US

[asdfgq]

they normally just send a letter telling you they're closing the a/c & if there are any arrears also a default notice giving you 14 days to remedy. If there are still any outstanding monies due they would then send a letter of assignment telling you the debt has been passed to a debt collector although normally it's first passed to their in-house collection arm which in Natwest's case is Triton. Same company different hat.

 

There is a high chance they'll close it, also they have the right to 'offset' which means they can take money from one a/c to pay another so if your current a/c was set up to pay your credit card theoretically they can still take money from it making you overdrawn if you have insufficient funds thus making you incur further charges.

 

A CCJ cannot be obtained against a non-UK resident. if you can prove you were out of the country at the time you have an absolute defence to have it set-aside.Any default judgment can be set-aside.

 

As you know it's extremely difficult for them to pursue in the US, see;

 

Not only that, they can't get a judgment here without service, and legal service is much more difficult here.

 

I see nothing though about these credit reporting agencies affecting my US credit. I can't seem to find online a case of this happening, but I'm sure it is possible a false record.

 

What's the best plan in talking to them to avoid a CCJ? Just say I'm not resident?

[cerberusalert]

Your UK credit rating has no bearing in the US.

 

What's the best plan in talking to them to avoid a CCJ? Just say I'm not resident?

The bank themselves are unlikely to attempt obtaining a CCJ, they are more likely to sell the debt on to a DCA & then claim tax relief.

 

Certain DCAs have been known to use previous known UK addresses to serve a summons thus obtaining a judgment by default, but as I said these can be set-aside. However it strengthens your defense if the original creditor has been made aware that you are no longer a UK resident as that information would also have been passed on to the DCA.

[asdfgq]

Your UK credit rating has no bearing in the US.

 

The bank themselves are unlikely to attempt obtaining a CCJ, they are more likely to sell the debt on to a DCA & then claim tax relief.

 

Certain DCAs have been known to use previous known UK addresses to serve a summons thus obtaining a judgment by default, but as I said these can be set-aside. However it strengthens your defense if the original creditor has been made aware that you are no longer a UK resident as that information would also have been passed on to the DCA.

 

Yes but a US DCA could ding my credit here I assume from an unenforceable action in the UK, no?

 

And do you think there is any advantage to paying off my other credit card in the UK? And do other high street banks close existing accounts once a CCJ or bad debt is entered?

[cerberusalert]

Yes but a US DCA could ding my credit here I assume from an unenforceable action in the UK, no?

No, it's a UK debt which is covered by the Data Protection Act.

 

And do you think there is any advantage to paying off my other credit card in the UK? And do other high street banks close existing accounts once a CCJ or bad debt is entered?

 

Banks keep an eye on peoples credit ratings and if they think there is a problem they would be likely to close existing a/cs irrespective of there being CCJs. They look at as being a credit risk.

[asdfgq]

No, it's a UK debt which is covered by the Data Protection Act.

 

 

 

Banks keep an eye on peoples credit ratings and if they think there is a problem they would be likely to close existing a/cs irrespective of there being CCJs. They look at as being a credit risk.

 

Anyway for them to garnish another bank account with a CCJ? Or would data protection prevent another bank from telling them anything?

[cerberusalert]

Anyway for them to garnish another bank account with a CCJ?

They could with another UK a/c if they had the details of that a/c, but a garnishee order is only good for a one off 'hit'. if there are insufficeient funds at the time it's served it fails.

 

would data protection prevent another bank from telling them anything?

Yes.

[asdfgq]

They could with another UK a/c if they had the details of that a/c, but a garnishee order is only good for a one off 'hit'. if there are insufficeient funds at the time it's served it fails.

 

Yes.

 

Thank you for your answers. I will keep posted in this thread of developments. I am leaning toward default because I don't have time to deal with their BS from abroad. It is so silly over 2k, but that's life.

 

I didn't use this account so much, but I found out someone who sent me money (they owed me)once also had their account closed. He's a bit dodgy so that could be it, but I still can't believe they just don't freeze the account so I can pay in until my overdraft and credit card is cleared. This is madness!