urgent please help

[emmaBZ]

hi my parents have started claiming charges of natwest ny way as they kept getting charged they are now £1000+ O/D so when the loan protection cover gets paid into accunt at the end of each month its getting eaten up by O/D and when loan try to take payment its not there ? they contacted bank and agreed to pay back £5 month for O/D so how can they make sure the protection cover gets to loan as natwest say its got to be paid into there acc then taken from there into loan....? any advise welcome

[lilal]

could open another account with the natwest or better still with another bank,contact who is paying the ppi and instruct them to pay into this account ,as the other account is with collections .then i would pay the loan manually at the bank.hope this helps

[Smoothy]

Ok...lets break your parents situation down if I may.

They have an account that they are claiming charges back on. This account is overdrawn and they have an agreement to pay back the overdraft at £5 per month.

They also have a loan which they have claimed PPI on. The PPI is paid into their account but swallowed by the overdraft and so when the loan is due to be paid, funds are unavailable.

 

Is that about right?

[emmaBZ]

hi thats right, ( the reason they are overdrawn is the bank took out £1300 in one go to cover last few missed ppi loan repayments. parents are both off work..so insurance paying for loan..( payments were missed as charges were taken out of loan repayment amount so the full amount wasnt available when loan called for the repayment so it was failed payment also resulting in more charges ! ) ..basically they used the letter of appropriation as charges were taken from benefit money eventually got a letter back saying bank will refund charges about £200 then , next paragraph saying as few missed repayments for loan they taken out £1300 making parents overdrawn....so they never even got to use the refunded charges....as they are now overdrawn ( no agreed overdraft ) have made agreement to pay back overdrawn amount at £5 month....but as they are still overdrawn, every month the £300 insurance for the loan goes into the current acc...is being eaten by the O/D amount, thus another failed loan payment and more charges ....

[Smoothy]

Ok...

As Lilal said, try setting up another account that has the PPI paid in and the loan taken out, that will leave you with just the Natwest current account to deal with. If you have the last 6 years bank statements then you can begin reclaiming the charges applied to that account that havnt already been refunded. If you dont have statements, start the process by sending a SAR by recorded delivery and use a £10 postal order to cover the statutory fee.

Use the advanced spreadsheet http://www.cag-files.co.uk/barracad/Spreadsheets/England/Complex-bank-charges-calc.xls to help you calculate the charges and interest. Then go through the process of reclaiming.

There is no quick solution to this unfortunately but you may find that reclaiming all thecharges and interest will reduce the overdraft and so make it more manageable for your parents.

If you start at the FAQ's then work your way through the NatWest forum it will give you some idea of the process involved.

 

Smoothy