Overdraft

[Worried]

Abbey have just written to me to inform me that they will be taking away my £2000 o/d on the 1.10.08.

 

I phoned to complain and eventually after speaking to various people was offered £2000 into my account that I would have to pay back at £100 odd per month, sorry don't have the exact figures to hand. I would also have to hand back my chq book and multi function card to the local branch.

 

I've been living in this overdraft for years as I've never had the spare cash to clear it, and having a failing business have lots of bank charges (it's not a business account) that I intend to claim back.

 

I currently have a payment plan in place with my creditors that means they are paid pro-rata depending on the debt amount. I don't think it would be fair on them to be paying the Abbey £100 per month.

 

I do have a parachute account set up so could transfer all DD/SO's etc over but then when they take away the o/d I would be £2000 in the red !!

 

My claim on bank charges would be way more than £2000 !!

 

What should I do ?

[TUTTSI]

Abbey have just written to me to inform me that they will be taking away my £2000 o/d on the 1.10.08.

 

I phoned to complain and eventually after speaking to various people was offered £2000 into my account that I would have to pay back at £100 odd per month, sorry don't have the exact figures to hand. I would also have to hand back my chq book and multi function card to the local branch.

 

I've been living in this overdraft for years as I've never had the spare cash to clear it, and having a failing business have lots of bank charges (it's not a business account) that I intend to claim back.

 

I currently have a payment plan in place with my creditors that means they are paid pro-rata depending on the debt amount. I don't think it would be fair on them to be paying the Abbey £100 per month.

 

I do have a parachute account set up so could transfer all DD/SO's etc over but then when they take away the o/d I would be £2000 in the red !!

 

My claim on bank charges would be way more than £2000 !!

 

What should I do ?

 

They are offering to give you a loan to pay a £100 back each month.

Do you come under hardship and have you suffered by excess bank charges. Perhaps if you could explain your situation better with regards to the payment plan I or someone may be able to assist better.

Tuttsi xx

[Worried]

Hi Tuttsi,

 

Well we are having a re-possession case (mortgage in partners sole name, bank account in joint) at the end of the month

 

The charges were £2920 incl stat interest as of Jun this year then another £265 in July, £300 in Aug and they want another £110.00 this month (those figures do not include their normal interest charges or stat interest) next month it should be down to one £35.00 charge as I've got on top of the situation, despite of Abbey's charges. Mind you that charge was for a £25.00 d/d even though they could see there was a £370.00 chq due to clear the next day

 

Got an o/s gas and elec bill to pay too.

[TUTTSI]

Hi Tuttsi,

 

Well we are having a re-possession case (mortgage in partners sole name, bank account in joint) at the end of the month

 

The charges were £2920 incl stat interest as of Jun this year then another £265 in July, £300 in Aug and they want another £110.00 this month (those figures do not include their normal interest charges or stat interest) next month it should be down to one £35.00 charge as I've got on top of the situation, despite of Abbey's charges. Mind you that charge was for a £25.00 d/d even though they could see there was a £370.00 chq due to clear the next day

 

Got an o/s gas and elec bill to pay too.

 

Hi Worried

 

You are right to be worried, it looks like you you will come under hardship as defined by the FSA waiver rules. If you have not already done a prelim letter regarding the charges and interest I would suggest doing this immediately and at the same time you can include all of the financial hardship deatils and evidences.

 

Another point on the Mortgage possession, not knowing your full details, there is the Norgan v cheltenham and Gloucester case where you can offer to pay the arrears over the remaining mortgage. You can look this up on Google.

 

The best way forward you should do your Pre lim letter or Letter before action and include the hardship details as follows:-

 

1.Joint Income and expenditure sheet.

 

2.Documentary evidences ie court summon's, Mortgage repossion documents etc, statement from your mortgage company showing that you are in arrears, council tax, electricty and gas arrears etc....in fact everything that you are currently struggling with.

 

3.Include in your letter why you believe you should be considered a hardship case ie in my case my hubby had a couple of emergency operations and we fell into serious arrears leading to a suspended possession order and behind with paying household bills. You have to spell out exactly why you feel that you have good grounds under the present FSA waiver rules on hardship. In your case what led to the Financial hardship building up.....

 

4.An up to date spreadie of charges and interest (call it compensatory interest not statutory).

 

Send it by recorded or special delivery so that they have to sign for.

 

If you need any further help I would be pleased to assist.

 

Tuttsi xx

Edited September 8, 2008 by TUTTSI

[Worried]

Hi Tuttsi,

 

They said on the phone that they needed 3 clear weeks before the o/d was due to expire (so this Wed) to set up this scheme to pay back the o/d. In view of what you've said above re hardship, which I will do I won't be able to make an informed decision as I won't have heard back from them by then. As such would it be best to transfer all our in's and out's to the parachute account and if neccesary let this one go unauthorised o/d by the £2000 on the 1st Oct, or will I get hit by a load more charges/court threats if I do that ?

[Worried]

Any views on the above pls as I only have until tomorrow to decide what to do with the o/d?

 

Also reading various forums there seems to be differing opinion on how far you can claim back. Some say 6 years others say longer. In my case if I went back to 2001 I would be claiming an extra £1600.00

[Worried]

Hi all,

 

They said on the phone that they needed 3 clear weeks before the o/d was due to expire (so this Wed) to set up this scheme to pay back the o/d. In view of what you've said above re hardship, which I will do I won't be able to make an informed decision as I won't have heard back from them by then. As such would it be best to transfer all our in's and out's to the parachute account and if neccesary let this one go unauthorised o/d by the £2000 on the 1st Oct, or will I get hit by a load more charges/court threats if I do that ?

 

D day today, so any views on which route I should take, the "loan" or move everything to another account and let it go o/d on the 1st and argue my case from then ?

 

Thx