Should I pay up now, then reclaim?

[Sri.Theo]

Hi everyone,

 

I'm a student that's just spent the year studying in Copenhagen, I opened a Nationwide account because they don't have any charges on withdrawing money abroad.

 

Bargain I thought.

 

Didn't really turn out that way though, as once I used up all the money I originally deposited I resorted to using my main Natwest account. I found that easier as I had internet banking set up and could keep track of my money. What I didn't realise is that I had gone £20 overdrawn in August 2008 (the account wasn't supposed to have an overdraft) and this has spiralled into £162 of debt which I discovered when I arrived at home.

 

What I'm looking for some advice on is whether I should simply pay up then try to reclaim the money- they're charging me a £20 fine plus interest every month. Or is there some way in which I can challenge the fine without paying, which I'd really like to do as I'm pretty broke at the moment.

 

Thanks for any help you can give me.

 

TL: DR, I'm £162 in debt through fees to Nationwide, should I pay then reclaim or is there a way to challenge it now?

Edited July 17, 2009 by Sri.Theo
Added TL:DR

[yourbank]

Which account is it with, Nationwide or NatWest?

 

Is it a student account with NatWest(which is the bank I think you mean)?

[Sri.Theo]

It's the Nationwide account I'm overdrawn on. Basically I used it, then abandoned it without realising I was in debt, this led to masses of charges building up.

 

My Natwest is a student account but that's fine.

[Sri.Theo]

Nobody has any advice or comments? Could do with some help here

[yourbank]

I knew on MSE I had see your name and thread before, lol.

You can do either, reclaim the charges and not pay them back or repay them and reclaim the charges. Up to you really.

[Sri.Theo]

Haha thanks very much, I guess I'll just send of the letter and see what happens. I think I'll have to pay though as from what I've read they're putting all claims on hold due to the court case. This would mean that my charges are still stacking up and its possible the court case could go the wrong way.

 

This sucks, any chance that since its a relatively small amount they might be generous?

[Clavis]

Write and tell them not to add any further charges to the account.

Also, contest all the amounts that they have added to the account and that you were unable to monitor the account as you were abroad as a student studying.

Offer them the original debt of £20 in full and final settlement and as an unemployed student it is all that you can afford and that you will pay the £20 demand at £5 per month. You have now made a legal offer in an attempt to resolve the dispute.

[Wizard of ID]

This sucks, any chance that since its a relatively small amount they might be generous?

If it's a first, you can try writing a grovelling letter, saying that you're in a vicious circle that will ultimately bankrupt you, and promising to be a good boy for evermore if they give you a break. It worked for me once.

 

Don't try to do it be phone, whatever you do. Nobody can tell you to get lost like a Nationwide call-centre noddy.