can they do that ?

[alexander]

I have an overdraft facility which i am reducing on a monthly basis as part of a manage down agreement.

 

I recently spoke with somebody in the debt management department and i told them i would be claiming back my charges which are over £5,000. I was told that when an account is in dispute the account is frozen.

 

as a result of this i did not make a payment.

 

On friday i got a letter from abbey saying i had broken the agreement and i must pay back the full overdraft over the next couple of months otherwise it will go to a recovery agency.

 

I took this to the complaints and they told me they would look at my charges and overdraft and call me back.

 

I got a phone call this morning telling me they have refunded £700.00 towards my overdraft which leaves about 200 outstanding.

 

I'm a little confused, they did not make me an offer ( not that i was expecting one) they just went ahead and reduced my overdraft and told me they had done it as a gesture of goodwill.

 

and also does this affect any claim i make through the courts. I have just received my last 6 years statements and am about to file in the courts.

 

I am worried that in court they will say i accepted an offer of £700.00. Abbey did not offer this they just told me that is what they had done.

 

Thanks any advice hugely appreciated !

[Glenn UK]

I think that you need to write to them formally telling them the account balance is in dispute due to the charges and confirm your intentions with respect to the outstanding balance ie whether your going to pay or not.

 

Personally i wouldn't pay anything whilst the dispute is ongoing but then i don't have to worry about my credit rating.

 

I would expect now they wont enter into a new arrangement in an effort to force you to withdraw your claim. It may be worth sending them the payment you missed plus reinstating the payments if you can afford it and are worried about your credit file.

 

In theory they shouldn't default you whilst the account is in dispute but they don't seem to take any notice of their banking code.

 

I think you have some choices and depending on your circumstances will depend on whats best for you.

 

I'm sure others have their views which may differ from mine.

 

HTH

 

Glenn

[bish]

I had the same problem as you, story of left hand not knowing what the right hand is doing. Get back to the debt management department and demand that the charges and interest are stopped until the dispute is resolved. HTH.

 

Regards bish.