Written by John Kruse, one of the leading experts on Bailiff Law, this consumer friendly guide is essential reading for anyone who comes into contact with a bailiff.
The book is easy to understand and clearly explains the rights
a bailiff has, and also what they cannot do when collecting debts and repossessing goods etc.
Im massivly over my over draft limit before action. Bank threaterning legal action!!!
Im massively over my od limit. The bank are threaterning legal action. I havent even begun to take action against them for nearly 1900 pound of charges. What should I do ??
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Its only my humble opinion but I think that you will probably have to make arrangements to make payments that you can afford. Also have you opened a parachute account and transferred your business over to that account. At least you will have control of your money. What stage of the process are you at?
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
They are asking me to enter into a repayment agreement.
If my charges were repayed this would not be needed.
Should I just go ahead and start reclaiming charges?
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
I have parachute account. All buisiness has been moved.
Havent sent any letters but have all my statements so dont need to send the data protection letter.
In terms of my od repayments they have only just rung me today, only mentioned legal action if I dont do anything. I said I would ring them back in the next week when I had an idea what was happening with my cash flow. Maybe I should offer a small payment monthly and begin proceedings?
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
I am not over my limit but I have an overdraft. I am in the same position as you and I have opened a parachute account. However I am at the aq stage. This week a sent a formal letter of two lines or so formally informing my bank that my account was in dispute. I also sent a separate letter offering to repay a small amount off my overdraft each month. When I win my case I will have more than enough money to pay it off. I think that the two issues are separate but you do have a responsibility to pay what you owe even though the bank owes you money too. However if your acount is in dispute the Banking Code states that they cannot give your details to credit reference agencies. So really I have tried to give myself a little breathing space. Hope this helps
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Bassplayer
At what stage is your account - is it still branch controlled?? Or in a bank collections department.
If still branch controlled **** them.
Protect your business - Move it
Enter a small repayment program - What you can afford - If you have a debt and offer to repay it no court will rule against you - provided you can prove it reasonable.
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Bassplayer88,
right I think I get the jist of your problem. Really good to hear you have a parachute account!!! This will help you either way you choose to go.
AJG's advise hear is sound and he is right if you can pay something you should, it will keep the wolves from the door and buy you time whilst you wait for your charges to be settled!!
I would advise you to spend some time looking at this excellent thread:
It is long (no apologies tho) and will not only help because they, i believe, were in a similar situation to you but will give you some excellent pointers on the way. This includes some examples of the best letters I have ever read on the topic AND a truely excellent spreadsheet for detailing your charges and calculating interest (whatever rate you choose to go for).
Take my advice give yourself a full day to fully ingest the information and processes in that thread and on this site so that you are comfortable with the arguments.
Hope this helps and as ever if I had tip me a wink when I pass by or my scales.
Gooders
PS. Having thought about it a little more, I think there is an argument against AJG's advice. (sorry AJG mate, I stress it is only IMO)
Enter a small repayment program - What you can afford
If you write to the branch/department dealing with your situation under the heading DISPUTED DEBT and outline in the letter why you are disputing the debt ..... the unlawful charges they levied etc. You are covered under the Banking Code so that they cannot continue the default or pass on the information to CRAs. This again will buy you time. But will by no means SOLVE the problem.
As these accounts are in dispute, I have stopped all payments going in or out of them until the issue is resolved. Section 13.6 of the Banking Code clearly states that you may only pass details of my debts to the credit reference agencies if the debts are not in dispute. As previously stated, I have disputed these debts in writing
from Mindzai's thread
In relation to continued pressure after dispute passed
As you are aware, this would constitute a further breach of section 13.6 of the Banking Code.
13.6 of the Banking Code clearly states that:
We may give information to credit reference agencies about the personal debts you owe us if:
• you have fallen behind with your payments;
• the amount owed is not in dispute; and
• you have not made proposals we are satisfied with for repaying your debt, following our formal demand.
Anyway mate, hope this gives you a few options. Will keep an eye on how you proceed but I cant recommend Mindzai's thread highly enough!!!!!
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Just a word of caution.
Gooders advice is spot on, and the Banking Code qoute is correct, however, some banks have a proviso on their T&Cs which basically allows them to pass info whether there is a dispute or not
This is taken directly from the banking code standards board website
13.6 We may give information to credit reference agencies about the personal debts you owe us if:
• you have fallen behind with your payments;
• the amount owed is not in dispute; and
• you have not made proposals we are satisfied with for repaying your debt, following our formal demand.
13.7 In these cases, we will give you at least 28 days’ notice that we plan to give information about the debts you owe us to credit reference agencies. At the same time, we will explain to you the role of credit reference agencies and the effect the information they provide can have on your ability to
get credit.
It then goes on to say....
xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxx
Sections 13.6 and 13.7 refer to the disclosure of default information, and when it can be relayed to credit reference agencies. For some time it has been common practice for banks and building societies to obtain the customer’s consent to such disclosures before borrowing is taken out, usually by way of a declaration on an application form.
xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxx
So, it may not stop a default being registered. Its not right, and I firmly beleive this can be challenged under the unfair terms in consumer contract regulations 1999. That doesn't solve the immediate problem.
Sorry to throw a spanner in the works, but from personal experience, a bank defaulted me, even after I quoted 13.6 of the banking code in various letters to them.
Ultimately, you can add a clause in you POC later to have any default removed, but for now, you are at the mercy of the banks.
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Louis,
Agreed but I still think Bassplayer should dispute the debt as a course of action anyway. It at least goes to show that there IS a dispute and if that THEN needs to be fought through the unfair terms in consumer contract regulations 1999 the so bet it.
The way I read this, its just as important to buy this guy some time. If the dispute fails then maybe AJGs advice of offering a token amount until he can pay it off in 1 go may well be the way forward!
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Why don't you offer to pay them one pound a week say that is all you can afford and carry on with your claim in the meantime, if they default you add the reoval of this default in with your claim this is exactly what happedend to me 14 months ago and I got all of my money back and no default good luck!!!!
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Gooders, totally agree, just wanted to add a word of caution. If it was me (and it has been) I would/have done exactly as your post suggests.
With regards to Alisons post, again, is good advice, but I think they will default you no matter what, the default seems personal to them and they love giving them out.
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Sorry AJG, but I have to disagree to one part of your post.
From personal experience, Abbey would not engage in a reasonable discussion, let alone entertain a reasonable offer. In fact, they made it clear that nothing less than a full agreement, by me, to a full payment within 28 days would result in default.
This is what we are up against, the old rules of compromise have gone as far as the banks are concerned, its either their way or the default way. Maybe I just had a bad experience, but if it happened to me, you can bet your life it is happening to others.
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
AJG
Noone is advocating hiding behind anything here and indeed he has mentioned
They are asking me to enter into a repayment agreement.
If my charges were repayed this would not be needed.
I understand and respect your position from working in the industry. However, he has ANOTHER option than the one you advise. it is OBVIOUS this debt is in dispute and by the sounds of it he has every right. My point is he needs to protect himself as much as possible by infoming his bank that he is disputing the debt, which as a consequence will give him more time to sort things out without being hounded! You will obviously be well aware what it says in the Banking Code about disputed debt.
Yes a small payment plan is an option but it has to be agreed and the banks version of what I can afford and mine might be different. The debt is acknowledged the reasons for the debt is being fought (charges)!!!
As an aside I find a comment like
You hide behind what ever you want but it will catch up with you
particularly pointed and not that helpful. Is it not better to present a rounded view of the options available rather than funnel someone into one particular way just because you, I or the next person would take that particular route or believes that to be the best way forward? give the options and let him make an educated decision
Or do old habbits die hard?
Again this is my personal view and in no way meant offend.
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
AJG
Om glad you are not taking offence as again none was went. "no matter what you say...." doesn't help with the discussion. I understand your point and AGAIN he is not hiding from the debt and by actively claiming what is rightfully his is facing things head on!!!
You will notice in my initial post I agreed with your point of aranging small payments but you HAVE to agree there are ther ways to fight this battle. the facts are the important part here, much more than peoples experiences .... whatever they may be. IMO a biased argument is flawed from the outset.
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Gooders
Completely agree
However do either of us know the facts??
Other than someone is overdrawn, over there overdraft limit and the bank want there money back - we have all been there otherwise this site would not exist
You will note my 1st post on this thread asked for more info - so although a difference of some opinion exists - I feel until we know more facts it is hard to give a balanced view
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
You are better to fact the debt than hide behind the Code of Banking Practice, after all the banks do not use it and break it every hour of every day
In your own words....these are the guys we are supposed to trust and talk to in order to make a fair agreement on paying back a debt or do you cover yourself by going the official route (for what it is worth apparently) and dispute the debt?
I know what I would do......
By the way AJG, and not picking on you, you have told the Mods your an Ex-bank employees havent you?
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
Agreed. More facts are needed and I welcome the discussion. It just seems some of your comments are harsh, maybe for effect, but if this guy is in a hole, he needs as much balanced advice as possible IMO.
Im massivly over my over draft limit before action. Bank threaterning legal action!!!
Reply With Quote
Re: Im massivly over my over draft limit before action. Bank threaterning legal actio
and talk to in order to make a fair agreement on paying back a debt or do you cover yourself by going the official route (for what it is worth apparently) and dispute the debt?