Automatic letters and confusion!

[jojodrums]

Hello!

 

I've been a regular lurker on this forum for quite some time. This site is fantastic!

 

I've been a customer of Smile since I was 18 (some 5 years ago) and never had any problems until I became unemployed in 2004. I couldn't repay my credit card so I went through a Free Debt Advice company through the Job Centre. Smile, bless them, created a repayment plan for my Debit account not my credit so it took several months for them to recognise the error and change the repayment plan to the right account. Obviously during the time it took them to sort it out I was receiving nasty letters and phone calls from them almost every week demanding payment. A stroke of luck meant I could pay off my credit card in one go which meant I didn't need to repay it anymore.

 

Unfortunately my luck didn't stretch to my overdraft on my debit card. I became self-employed as a drum teacher September last year and all was going well until a family member became ill and I had to stop work for 2 months. Obviously business was a bit slow to pick up again after the 2 month gap and I'm still being supported by friends and family now. In March 2006 I went over my overdraft by 1p! The charges amounted to £174 which I successfully claimed back. But by the time Smile had paid the charges back my account had incurred even more charges and I was back over my over-draft.

 

So this is where I am now: I filed another claim regarding the new charges but this time Smile are not responding. The charges keep mounting up too! I've sent the default letter this time as they've defaulted my account. I don't have online access anymore (they've blocked my account - I obviously have online access as I'm posting here! lol!) so I can't see what the charges are. I received a letter today saying I have to pay the total amount of my overdraft (£600) plus over £400 in charges - the letter also cost £60 to send apparently. The thing is I sent them several letters last week which they haven't acknowledged yet which really frustrates me - they just keep sending the threatening letters automatically. 'You have 7 days to respond' (which had the Co-op letterhead) and I get a letter the next day saying 'actually no, you don't, we're cancelling your account' (which had the Smile letterhead).

 

I'm going to apply for my account records (with my £10) as I need to see what the charges are but I'm concerned that by the time they respond to it they'll have passed my details onto a Debt Recovery agency even though I've sent them the Data Protection letter.

 

I have a new account which is good but it's only with a cash card as I really don't want anything with an overdraft but obviously this makes life a little more complicated!

 

Anyway, any advice would be good as I'm starting to get a little stressed!

 

Jo xx

[notsmilingyet]

They get pretty nasty quickly and I can well believe the 174 pounds over 1p overdrawn part because they did the same to me.

Do the S.A.R - (Subject Access Request) as soon as possible but also mail them seperately informing them of your intention to reclaim the charges as they are unlawful, though informal it might stop them wasting their time (and yours) with debt collectors.

 

Your case stands with the original bank. This is all in my own opinion of course, however you can be sure they will delay repayment of the charges for as long as possible. I started in May and they just told me they need another 8 weeks, if nessecery keep the debt collectors upto date with your court action so they know the debt they have bought is in contention

[jojodrums]

Thanks! I'll keep you posted. Lets see what happens!

 

Jo xx

[caro]

I would also tell them that you are placing the account in dispute and that should prevent any further action until the matter is resolved. ie you get your bank charges back.