Ok, so you have sent your letter:

http://www.consumeractiongroup.co.uk/forum/halifax-bank-bank-scotland/226753-complaint-about-halifax-new.html#post2512552

and soon enough, HBOS are going to reply. You are worried they'll use their usual bully tactics and tell you that since you won't play ball,

they want you to repay your overdraft. Here's the catch: like so many of us, you can't.

Are you trapped?

Hell NO.

I wrote this a few years ago:

http://www.consumeractiongroup.co.uk/forum/getting-out-debt/73030-taking-back-control-your.html

and even though some of it has aged a bit, the advice is still relevant.

However, here for those of you who are just worried about the overdraft part, here's a guide to help you through this:

If the bank tells you to repay the overdraft in full, don't panic.

Go and open a parachute account. If your credit score is poor, you can still open a basic one, in which you can set up all your Standing Orders (and direct Debits if you must have them), get your benefits and wages etc all diverted there. BEWARE! Do not open an account with a bank which is part of the same group, you never know if they won't try to offset the debt.

Work out how much you can repay per week/month without leaving you in financial dire straits. Write to the bank telling them that you can not possibly repay the o/d in one go, and that you will pay back £xx per wk/mth/4 wks/whatever until o/d is cleared. Enclose 1st payment in letter. If they cash the cheque, it will be all the harder for them, in the case of future argument, to explain why, if they didn't accept the agreement, they cashed the cheque. You need to say in your letter that this is the best you can do, and if they are not happy with it, they can and should take you to court and ask a judge to decide what and how much you should repay. Oh, and demand that they freeze interest onto the debt until it is paid off, or at the very least that they keep you under the existing T&Cs and current interest rates.

Before you jump ship, change your contact details, phone nos especially so they can't hassle you. Ok, so it may not be particularly straight dealings, but then neither would it be them phoning you 30 times a day and harassing you, so think of it as getting your retaliation in first. ;-)

Once you are out of their clutches, what's the worst that can happen? They can add charge after charge, which you'll refuse to pay. Realistically, all they're doing is add numbers to something which is no longer dragging you down. Let them add!

They could pass it to a DCA. Oh NO! And? ... As long as you are paying off your o/draft at the rate you have offered, religiously and without fault, there is not a lot they can REALLY do. Think about it.

Please please please don't let the fear of the withdrawn overdraft frighten you. It is merely one more debt, and not -despite what they'd like you to believe- even an important one. In the great scheme of things to pay, it would be right at the bottom of the list. They know this. Now you do too.

bump in case people missed this. ;-)

Good post Bookie, stickied and closed.