Can not pay debts

[avfc1991]

Hi, bit of a long story here.

 

I got into a bit of debt a year and a half back. I've paid back around £2000 through stepchange in the last year and whatever, at £208 a month. The debt would have been cleared last month, until natwest whacked £850 of charges on my unused account (minicredit had taken £25 out which I didn't know about, and the charges racked up over 4 months).

 

I sent letters to natwest, down the financial hardship route, which they just rejected.

 

Now, I literally can not pay my debts anymore.

 

I only get £1000 a month, and until recently I was on bi weekly pay. My boss switched me over to monthly pay, and lent me £1000 to tide me over. He'll be taking £250 off my wage for the next 4 months.

 

My rent is £350. Out of the grand, I paid 3 months rent, and £100 for the fourth month, which means I owe £250 in the final month.

 

Now, I had to pay £250 for my mot and car tax which I owe out of next months rent.

 

This month I'll get a grand payment, I can pay stepchange £380 - which clears all my debts except £500 with natwest. I need to pay £250 for my car stuff, and £30 on my phone contract and £50 for my season ticket finance. From next month I'll be getting £750 a month, and I need to raise £250 to pay my rent whilst paying natwest back their £500.

 

How can I remove natwest from my debt plan, and start paying them minimum payments? I just can not cope with all this money going out, especially to bank charges which were extremely unfair imo.

 

Any help is extremely appreciated, I need money to get to work and eat !

[citizenB]

Why did minicredit take money out of your account - did they have your permission to do this.

 

I will try and find some advice for you. However, I would simply ask StepChange to remove NatWest from your list.

[avfc1991]

I have no idea why minicredit took it out, but natwest say there's nothing they can do... Minicredit take money when they want, for charges they make up - I'm just glad they're paid off and have left me alone.

 

I will ring stepchange tomorrow to remove natwest, they did say they could give me a ccj if i go back on the agreement I had with them though...

 

edit: I must add, i left the natwest account at zero, and moved to barclays - it's my own fault for not being clued up enough to realise what can happen leaving a bank account open and not checking it, I won't let that happen again...

[citizenB]

Who could give you a CCJ ?

[avfc1991]

Natwest if i go back on the stepchange agreement I had with them. I did email the ceo asking if they could just scrap the remaining £500 charges, desperate I know, but worth a shot.

 

I just want a new agreement with natwest where I pay them £30 a month until it's all tided over a bit, just don't think they'll accept it though.

[citizenB]

The only thing I could suggest is that you write again to NatWest - to their Head Office. Mark your letter "Formal Complaint" and send the letter by recorded delivery.

 

Advise that MiniCredit had no permission to take money from your account.

 

That NatWest have at no time advised you that there were default / penalty charges racking up and that you feel you are being "treated unfairly".

 

£850.00 worth of charges on a £25.00 overdraft, of which you were not notified is disproportionate.

 

You would request they revisit their decision to dispense with these charges.

 

 

 

If they then still refuse, then I would suggest you escalate your complaint to the Financial Ombudsman. That way there will be a legitimate dispute in place, which should prevent them taking any legal action against you.

[avfc1991]

Ok, thanks, I will remove natwest from stepchange tomorrow, and contact the ombudsmen. Thanks.

[citizenB]

Ok, thanks, I will remove natwest from stepchange tomorrow, and contact the ombudsmen. Thanks.

 

I think you should send the Formal Complaint to NatWest Head office, first. I have drafted an outline for you to help you with the letter.

 

If they revisit their decision in your favour - great. If they don't, then you should make your complaint to the Ombudsman.

[avfc1991]

Problem is, they just take so long to reply to everything. My initial complaint took about 14 weeks to get a response, and even then they said the decision would be made by the 14th of this month. I rang them last Thursday and they gave me the decision down the phone, as I'd received no letter.

 

I sent them a letter on friday, saying if they had rejected my claims, asking if they could stop all charges until an unbiased verdict had been received by the financial ombudsmen. I'm not sure how long it'll take me to get a reply, if ever. So I think i possibly blew the chance of a second letter?

[citizenB]

By heading your letter "Formal Complaint" you should receive a response within 8 weeks. .

 

However, I understand what you are saying, so perhaps yes, make the next move the Ombudsman. Make it quite clear in your complaint to the FOS that you have made an attempt to have the Bank resolve this for you and advise that they have taken 14 weeks and still haven't confirmed their decision in writing.

[avfc1991]

Yep, I think that's the way to do it. I'll get onto them and post on here any news, cheers mate.

[slick132]

Hi AVFC,

 

I wonder if Stepchange will agree to remove any one creditor from your list.

 

The biggest problem you could resolve here is the ludicrous amount of charges added to your NatWest a/c after the Minicredit withdrawal. Regardless of whether Minicredit had the right to make the withdrawal, the repeated charges piled on by NatWest are surely unfair to you as their customer and disproportionate to the initial payment.

 

I think this should be challenged in the strongest possible terms using the BCOB Reg'ns.

 

[avfc1991]

After emailing them, they have said a case manager will contact me as soon as possible, I'll use the ideas from this thread, thanks a lot!

[slick132]

Hi avfc,

 

Case manager from where ?

 

While you're waiting, use the time to read about BCOBs.

 

Also read up on how and why you should seek a refund of the huge amount of charges.

 

[avfc1991]

Hi, just an update. I emailed stephen hester, and as i said his case manager would be in touch.

 

They've cleared my account, but won't refund the £350 I've paid. Still, I'm happy with that, one nightmare out the way!

 

Thanks for all your help.

[slick132]

Hi avfc,

 

As long as you're happy with the result, that's all that matters.

 

Edited June 1, 2013 by slick132

[citizenB]

Well done - I think you have probably got the best result and as you say - it is now one debt out of the way.

 

Do please keep their response for at least 18 months - 2 years.