First Direct wants to close my personal Bank account and pay arranged overdraft in 2 Months

[wiosna30]

First Direct wants to close my personal Bank account and pay arranged overdraft in 2 Months

 

I just received letter from them that they have to review some accounts sometimes and they decided to close mine .

My scoring is bad, I had problem before with gambling, payday loans etc., a few times I went over arranged overdraft but always in week or two paid this in full.

 

I am with them 17 years, have overdraft £6000.00 and now I have to pay it back in 2 Months.

Due to current situation, I am working, but my income has been drastically cut off , I don't have 6000.00 to pay them anyway.

I did not call them yet, I don't know what to expect from them, because is impossible for me now to pay the £6000.00 as they want

 

[BankFodder]

The most important thing here is to make sure you have got another bank account.

Have you opened up a parachute account? Get started. Because your credit history it may be difficult – but there are Internet options – and you need to open one, and two or three bank accounts are always useful.

However, don't use this as a basis for getting yourself into more debt.

I'm afraid they are entitled to close your account and they are entitled to request repayment of the overdraft – although in my view they have to do this in a fair and reasonable way – and it is completely unfair of them to demand repayment in full of a £6000 overdraft in a very short space of time.

I'm quite sure that you will find that they fully appreciate this and although they may make all sorts of funny noises, at the end of the day they will accept an instalment scheme.

I can imagine that your rate of overdraft interest is pretty high and you need to be talking to them about consolidating this into a personal loan which will be at a much more advantageous rate. If you can agree that with them and arrange a scheme of repayments which is within your budget, then you will probably find it easier to deal with and also will give you a structure which you will find more comfortable rather than having an overdraft hanging over you.
You should certainly call them and engage with them so that they see you as proactive and cooperative.

Stand by for contributions from others to this thread.

[wiosna30]

 I have another personal account with Starling, I am only worried if the accept me to pay it back in instalments. I have as well other debts to pay and can afford only small amount each Month like £100.00, not more 

[BankFodder]

Well you will have do you calculate your incomes and outgoings – identify priority debts and commitments – and then discuss it with the bank.

I expect that my colleague @dx100uk will come along with better information. Do you own a home?

I must say that £100 a month seems quite a lot to me – even though the overdraft of £6000. When it comes to negotiating, I would offer them less and keep the figure of £100 in reserve as your top figure.

Don't forget, that once you agree your instalments, there is not much room for finding yourself suddenly unable to pay for a month or two.

[wiosna30]

 I have mortgage to pay and other bills too.  

[BankFodder]

Well it will have to be counted up. You own a property. How much equity is there in the property?

[wiosna30]

 Still i have to pay 292,000 and the property is worth 500.000, its a join mortgage but account is only for my name. Sorry, but I dont understand what the property is to do with this ? 

[BankFodder]

The property is interesting because it is an asset of yours. Your overdraft is only £6000 but if it was a much more significant sum, then you might find that the bank would try to move against you to recover the money and possibly execute against your asset – the house.

However, it might be that the bank would like to secure a loan on your property.

[dx100uk]

stuff 'em and all the other non priority debts.

 

use our pro rata letters in the debts collection section of our library.

and if they won't help by freezing all interest and charges then send letter two and drop them to £1PCM for life.

 

dx

 

[wiosna30]

Thank you

[honeybee13]

Thread reopened.

 

HB

[wiosna30]

UPDATE

 

I sent them the letter explaining my current situation and asking to pay my outstanding overdraft in Monthly instalments, I enclosed the Budget showing my income and all monthly payments/expenses offering £40.00/ Month but I was ignored .

 

I sent it  by recorded delivery, letter has been received and signed but I never received any response from them, any messages left , any calls . I had from them only two letters in Total – one in Feb, that they are closing my account and another one later with info that all my Bank Statements for last years I will get by email and password will be send separately , anything else.

 

They passed my Debt to Moorcroft Group Plc ( letter from them on August ) and we agreed repayment plan  paying Monthly from now (first payment gone on the 1^st of Sep ) But I noticed that on Credit File FD placed Default on my account dated August .

 

Can they do this not sending first Default Notice ?

Edited October 4, 2021 by dx100uk
block of text spaced to paragraphs

[dx100uk]

yes but i would not be paying moorcroft as they take their cut, pay FD directly

hope you didnt talk to them?

[wiosna30]

Why I should not be paying to Moorcroft ?

FD closed my account, when I tried first pay them, money has been returned to my account immediately .

I did not speak with Moorcroft, I just set up plan with them online

[dx100uk]

cause they dont own the debt.

look at their letter it says our client FD

 

oh well but next time dont blindly ever set up a dd to a dca ever!

only ever use a standing order  pref never ever pay a dca !!

 

did you use your debit card on their site?

[wiosna30]

Yes, I did – I paid by debit card.

 

I am sorry but I don’t understand – so  should I stop paying them ? what happened after ?

 

[dx100uk]

i would yes

 

you now need to contact your bank and tell them you've setup a continuous payment authority using your debit card on a website to the wrong party and need it stopped.

 

 

[wiosna30]

What happens if I stop to paying this ?

[dx100uk]

when fd write you write back stating you only want to pay them.

 

original creditors dont do court so..............

[dx100uk]