Total borrowed + 1 months interest?

[jboyd83]

I have a lot of debt including a PDL which is due for repayment around 17th Jan, I have no means to repay at present and from reading through threads on here I have decided to wait for all of my creditors to Default me on the accounts before any offer of payment arrangement, this is so the 6 year wait for the default starts from then rather than when an AP or DMP would start from the date its completed.

 

 

What I would like to know is regarding only paying back the original loan plus 1 mths interest.......does this mean for example say I borrowed £1000 and they put £400 interest on so total repayment due on 17th Jan would be £1400 - does this mean you would offer them the 1400 plus another months interest or does it mean you would only offer the original 1000 I borrowed plus a months interest?

[citizenB]

If it is your intention to default on the PDL, you MUST stop the Continuous payment authority as soon as you can.

 

http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them

 

Have you sorted out and Income & Expenditure sheet in order to be ready with your proposals for new repayment schedules !

 

If you write to your creditors now advising that you are experiencing difficulties making the contractual payments then it will look better for you.

[jboyd83]

Wow quick reply thankyou citizenb.

I think I'm just going to close the account, was going to keep it open for other payments but still scared incase they somehow manage to get at my tax credits. I have applied for a new account with the same bank- natwest - they can't access this new one can they?

Also, if I make an AP now then surely this will not mean I will have a default, merely an AP marker which will definitely take longer to disappear.

How will getting in touch look better for me, can you explain a bit more please.

Thanks

[citizenB]

Aghhhh, you need to open a new account with a bank that is totally unconnected with your current provider..

[jboyd83]

And yes regarding income and expenditure - I know at the moment I can only offer a token payment of £1 each as we are barely managing to get a decent food shop in. However this is only until April when my husband gets his termly student loans, then I will recalculate what we can manage again.

[jboyd83]

Oh sHhhhhh......ugar. Didn't realise they could do that. Don't know what to do now, put the letter in to stop any further CPA or just close all accounts. What do you suggest? The reason I wanted to stay with natwest is when a payment is due out that day you have until 2pm to put the funds in to cover it, whereas with my other bank Halifax, the funds must be in the day before or it bounces the payment/dd.

[Surfer01]

Wow quick reply thankyou citizenb.

I think I'm just going to close the account, was going to keep it open for other payments but still scared incase they somehow manage to get at my tax credits. I have applied for a new account with the same bank- natwest - they can't access this new one can they?

Also, if I make an AP now then surely this will not mean I will have a default, merely an AP marker which will definitely take longer to disappear.

How will getting in touch look better for me, can you explain a bit more please.

Thanks

The bank can use what is called "Offset" and drain the account to pay outstanding debt on another account. You need to change banks ASAP before any defaults are registered otherwise from that point on it will be very difficult opening accounts with debit card facilities.

[jboyd83]

Okay, closing all natwest accounts as advised.

Have a halifax one I can use as an emergency but loved the facility natwest had where I can rush down to bank that day to put funds in to cover dd's going out that day, therefore preventing me accruing any charges for returning the dd. Have posted a new thread to see if anyone knows of other banks do this.

Thanks

[jboyd83]

So just to clarify...even if I get the bank to stamp and sign my letter to stop all CPAs you would still advise closing the account? Seems pointless having that ability to stop them if I still would need to close the account?....

Also does anyone know the answer to the question about the original loan plus 1mth interest?

Thanks again

[jboyd83]

Right......I think I have it now.....

If I want to keep any kind of account with my current provider I still need to put the CPA stop letter into the bank for the original account where the PDL is due from- yes?

Does that mean I can then keep the original account or would you say close it after I have put the CPA letter in?

If I put the CPA letter in and keep the original account open aswel as open another account with the same provider, can they STILL take money from EITHER account?!

I think I've confused myself by not knowing what the best course of action is as there are a couple of options and the fact I really want to keep a natwest account

[Surfer01]

This may or may not be helpful. We have two accounts. All income goes into the account where all the DDs are and the other account is our spending account. We work out how much is needed for the DDs and then transfer the balance into the spending account. No more returned DDs. Main account with DDs is HSBC and spending account with Nationwide. Works for us.

Natwest may or may not process your request, but even if they do the PDL may re-instate it again. Do you really want to take the chance?