Overdraft cancellation

[SCC]

I have today received the attached letter from the bank to advise that they want me to repay the arranged overdraft.

 

Having read the letter, I see that they had quoted the sort code in place of my account number.

 

Can anyone advise an appropriate response.

 

Many thanks:-|

Natwest.pdf

[BankFodder]

It isn't helpful that you obscure the amounts involved. It would help us little more to understand the seriousness of the problem.

 

Also you don't give us any information as to why they might want you to repay the arranged overdraft, how long you have had it, and whether or not you have been using your account correctly.

 

It would also be interesting to know whether you have suffered any bank charges and if so what the total bank charges paid might be.

 

Whatever happens you will have to deal with them and you should respond. However it is difficult to advise on any kind of response as you have given us very little to go on.

[SCC]

We have been with the bank since November 2000 and have had the overdraft since inception.

 

Account ran well until approx 1 year ago when we exceeded our o/d and have struggled to get back on track since.

 

Salaries and all reimbursed company expenses have been going into the account since Nov 2008.

 

 

The principal amount is £17679.33

Interest to the date show - 23/04/09 - £609.01

Total - £18288.34

 

Reasons for recall of overdraft - have been over the o/d limit for about a year although credits to the account ensure that the account is largely operated within the agreed range.

 

Have definately suffered bank charges - interest on o/d approximately £1200 per year plus ancilliary charges makes the total approximately £7500.

[BankFodder]

What is the agreed overdraft level?

[SCC]

£11000.

[BankFodder]

So you have an agreed overdraft of 1100. You have incurred charges of 7500 inc interest - but you aren't sure how much interest.

 

I think that we need to try and get these figures straight.

 

From the sounds of it it maybe that once unlawful charges are removed and the interest on them - which is unlawful also, that you may be under your overdraft limit and in fact you may be able to say that but for their unlawful behaviour, the account would have been correctly conducted.

In fact it may well be their misconduct of the account which has lead to this position.

 

How much paperwork do you have? have you kept your statements?

[SCC]

The o/d is £11000 not £1100.

I agree about the charges. We have all our bank statements so could pull these figures but will probably ask the bank for them - pay them the £10 for the service.

What do we do now?

[BankFodder]

yes, £11,000 -- my typo.

 

If you have all the statements then don't bother about asking the bank for the summary of charges as it will take them at least 40 days to comply. I think that you need to move quickly and take control of this problem.

 

Get all of your statements and start going through them with a highlighter and identify all the charges right from the beginning. Make a note of them separately or better still enter them on our spreadsheet.

 

Also you will have to try and understand what interest has been levied on these charges and make a note of that as well. Every charge is unlawful and any interest on that charge is unlawful as well. This makes it a very complicated job and I have to say that some people don't bother but in your case it seems to be such a significant amount but I'm sure that it will be well worthwhile.

 

Let's see where this all leads us when you get the totals and then you can decide what to do.

 

I am probably going to suggest that you begin an immediate court action for the recovery of charges. This will be put on hold -- but it will immediately damage their case for recovery of the money and it will also damage their argument that your account has been run poorly. Hopefully we should be able to leverage the situation very strongly and get them on the back foot.

 

I hope that you are prepared to a good fight. If you aren't then don't bother doing any of this.

 

I suppose that they have also blotted your copybook. Have you done a credit search? You should do. If it turns out that it is entirely their charges which have not you over then it could be that any credit reference agency entries should also not be there. One thing at a time of course, however it would be interesting to know whether you have suffered any trouble, inconvenience, loss, or stress as a result of negative entries on your credit file.

[SCC]

Many thanks for all your advice.

 

Will get onto the charges immediately. Will also log the court action to recover the charges.

 

Do I need to write to the bank about their letter cancelling the o/d?

[BankFodder]

what do you mean by "log the court action"?

 

No don't write any letters to anybody until you know what the situation is. You have no idea of the arguments you might want to use until you are fully informed as to your situation.

[SCC]

Will get all info and log back onto the discussion.

 

Thanks again.