NatWest - Complete negligence kills my credit history

[carcar]

Dear fellow members,

 

Some advice on the following saga, which has been going on for years, would be appreciated. I'll try and keep the explanation as short as possible.

 

In 2011, I deposited a cheque into my NW account. A few days later, it appeared to have cleared because I had available funds showing in my account, so I withdrew some money. The day after I withdrew money, the cheque bounced, which left my account significantly over my overdraft limit.

 

I speak with Collections and suggest that we speak again in a month's time, by which time, I'd have done some figures and worked out how much I can pay per month, to reduce the balance. They were fine with this. 30 days later, they hadn't called me. 32 days later (only 2 days after the 'we'll have a conversation in a month's time date), I receive a 'Dear John, we have closed your accounts and give you 60 days to repay the balance...' letter.

 

I call NW, to discuss the matter and nobody can discuss the matter with me, because the accounts are now 'closed'. I tried speaking with Customer Services, 2x Collections Departments, Customer Complaints, a Previous NW Business Manager, Business Customer Services etc. Absolutely nobody could discuss the matter with me, despite me trying in vain to discuss it with them. A couple of people gave me a phone number to call, which I did. It was an unmanned voicemail facility and I left a few messages, but obviously, nobody called me back. - I could not believe how hard I was trying to speak with somebody about me paying them money and how much they obviously didn't want it - phenomenal, I couldn't have tried any harder!

 

After banging my head against the brick wall for a few weeks and getting nowhere, I sent a letter (recorded delivery) directly to the then CEO, Stephen Hester. In short, I explained my accounts had been closed, I was trying in vain to set up a plan for repayment, but nobody would speak to me and that I knew this would start having a serious impact on my credit history - so please get your skates on, find some common sense and speak to me so I can pay you!

 

I then received a letter from someone in the CEO's office and opened conversation with him regarding the situation, via letters and phone calls (full conversation notes takes). He fully understood the situation, was sympathetic and seemed to be doing something about the situation. The fact that I had found his direct phone number and was regularly calling him seemed to help. He then passed me onto another internal department, that could deal with a repayment plan and rectify and harm done to my credit history. I spoke to the guy there, who seemed a bit vague because he had to constantly liaise with his boss on the matters. Eventually, I found the direct dial for his boss and also their mobile number and I was in constant communication with them.

 

Now I was in communication with 2 different people in the RBS HQ offices (who seemed contactable, had common sense and enough clout to get things done)and things seemed to be going swimmingly well. I agreed to pay back the balance over 3 months and they agreed to rectify my credit history (because it was their negligence that had effected it). I asked them to put it in writing that they would rectify my credit history, because I didn't want to keep my end of the deal, only for them to renege on theirs'. One of them thought they should check with their legal department, before writing me email confirmation of this. Guess what, their legal department tells them they couldn't do it. I then receive a letter from them saying, you have to pay everything back and we won't rectify your credit history and that this is a ‘Final Response’ from them (in complete contradiction to what we had been discussing for months)

 

Maybe I shouldn't have asked them for it in writing, who knows. What I do know, is that while the whole saga had been going on, my credit history had been left on tatters (shows 2x defaults).

 

Some advice on the best way forward would be appreciated. To pre-empt some questions;

 

- They have not sent me any default notices

 

- The amount of the defaults on my credit files are wrong

 

- Having tallied up all bank charges I have had from them since I opened the accounts + interest, it comes to 2-3 times the amount owed to them

 

- They have not been able to send me any T's&C's, overdraft agreements etc, following my SOR request

 

- My credit history deteriated and went to defaults, whilst they were being negligent in not speaking with me and later on whilst people in HQ were speaking with me and were assuring me that they were dealing with things

 

- I went over the OD limit, purely because they let me draw on a cheque that was showing as cleared

 

I really look forward to some good guidance on the best way forward here and thanks in advance

[citizenB]

I see you have already sent a SAR request..

 

You could send a letter marked "Formal Complaint" to the CEO - pretty much outline what you have already said/done and ask for a satisfactory resolution. If this has not happened within 8 weeks then you can escalate your complaint to the Ombudsman.

 

They should have been able to provide you with copies of the facility letters.

 

I thought most banks wont let you draw on uncleared cheques ? My bank shows two balances after a cheque has been deposited.. One that includes the cheque amount and the other showing what funds are available (which is minus the cheque amount).

 

I rather suspect that they will not let you counter balance their charges against what they say you owe them, unless you can prove that the charges were only applied because of their incompetence.

[carcar]

Hi citezenb,

 

I guess I could try writing to him again and then onto the ombudsmen afterwards. I was wondering if there were any technicalities, that would help me deliver a quick knock out blow? i.e. no default letter sent etc?

 

In my experience, there are always 2 balances as well. There was too on this NW account until about day 3/4, then it looked cleared because both balances were the same and I could draw on the funds.

[citizenB]

You might want to have a read of BCOBS, which are linked in my signature. You might find something there that would help. You might want to try and include the fact that you do not believe they have been "Treating you Fairly" which is the basis of BCOBs Once you claim that you believe they have treated you unfairly, it is for them to prove that they have behaved properly.

[carcar]

It looks like this could be a good way to go. How would I go about bringing a BCOBS claim against them - threatening them with one first?

[citizenB]

Send your formal complaint first and give them the opportunity to resolve this. Slip in the fact that you believe that they have treated you unfairly and wait for their reply within the time frame allowed.

 

I am not sure that advising them that if they dont see things your way, you will take legal action will make any difference at this stage. If you dont get the response you are looking for, then would be the time to simply send a Letter before Action and move on with issuing a claim.

[carcar]

Great, I'll send the letter and will keep you updated

[Klandestine]

I thought most banks wont let you draw on uncleared cheques ? My bank shows two balances after a cheque has been deposited.. One that includes the cheque amount and the other showing what funds are available (which is minus the cheque amount).

 

This has never been the case.

They follow the Cheque Clearing Cycle which means that the money is available to withdraw 4 working days after the date of the deposit (although some banks will make the amount available sooner).

The money isn't cleared and therefore "safe" to withdraw until the 6th working day.

 

I went over the OD limit, purely because they let me draw on a cheque that was showing as cleared

 

Cheques can never be considered cleared until 6 working days after you deposited the cheque.

The money may have been available to withdraw but it was never shown to be cleared.

You went overdrawn because you withdrew funds which were available but uncleared and the cheque later bounced. That was a risk you took so I'm afraid the debt is owed by you to the bank.

 

If I was you, I would start a new complaint focusing on how you were messed around following the closure of your account even though you did want to come to some kind of payment arrangement. I wouldn't get your hopes up about them wiping your credit history though.

[carcar]

Cheers Klandestine.

 

I made notes of the conversations I had with them. The people I spoke with in Edinburgh did confirm to me on different occasions that the bank could restore my credit history, if it was the bank's fault. This makes logical sense to me as well.

 

I couldn't have tried harder to talk to them about paying it and when they did enter dialogue with me, they dragged it out for months, thus damaging my history. If they had wanted to purposely do this, they couldn't have done a better job.

 

I'll get the formal complaint of and see what happens.

 

By the way, do you know if they are allowed to inform credit agencies of a default, if they haven't sent me one? One of the people I spoke with in Edinburgh had asked me if I had been sent one, to which I told him no. I'm wondering why he was asking me that?

[carcar]

Hi citezenB,

 

I have an update on this; I sent a Formal Complaint Letter in December. I haven't received any reply though - not even one of those standard letters acknowledging that they have received my complaint. I sent the letter recorded delivery.

 

Should I send them another letter chasing them up and giving them a time limit to reply?