Is this the only route I have left to take??

[hot mamma]

Hi,I wonder if anyone could give me a little bit of advice?, my problem is this:I have a joint account with my husband which is currently overdrawn, we decided a couple of months ago that we would not use it anymore and try and pay a little bit of money in each month to pay it off.Out of this acccount we both have a personal loan through the bank, we tried to cancel the s/o's but was told that we were not allowed to - as part of the contract of the loan it had to come out of this account.I missed 2 payments on my loan and then last month I called them up and told them that I would pay a certain amount in extra each month to clear the arrears and that due to the current account being o/d it was agreed that I could pay the payments from my savings acc,so, last month i did this, called them up and said i wanted to pay 400, and was told I couldn't pay 400 only the actual amount that was the actual payment for that month 328.00, after alot of arguing they put me through to someone else who basically advised me to pay the 400 into the current account to get that down and then this month I should do the same and ask for the 4 missed payments to be put onto the end of the loan, so this month that is what I set out to do, after calling up and being bounced around I was told to go into the branch and speak to them about it, they palmed me off and told me that someone would call me, which they have done today, this woman has now said that because I have gone 4 payments behind that it has got really serious and that if i don't pay the arrears off then they will default me and come for me for the whole amount, and that my only way out of it is to have a managed loan that will pay off the arrears and the overdraft on the current account.She has taken the loan payment for this month from the savings account and said I need to talk to my husband as soon as possible and get back to them. as far as I'm concerned if it hadn't have been for bad advise from the first woman then I wouldn't be in as bad a mess and I feel I've been backed into a corner - is this my only option and can they do this? any advise would be greatly appreciated.

[gizmo111]

Ok first off - there is no point having savings other than an emergency fund if you are in debt as the interest you earn wil lnever come anywhere the interest you are paying.

2nd - Whatever you have in savings withdraw on Monday before the bank exercise their right of offset and take them all awy from you.

3rd _ i am assuming this is a HSBC account - do not take a managed loan.

4th - open an account elsewhere - even if it is only a basic account that will accept your income and expenditure for your ssential outgoings

5th - Sit down and draw up a budget that yo ucan live on for a long time - when you know the surplus income you have each month make the bank and any other creditors an offer you can afford - even if it is only £1 per month.

6th - Claim back the charges on all accounts you ahve and use this to reduce your debt.

7th - any more questions post back and good luck.

[hot mamma]

thanks for your reply, i am currently claiming back my charges with HSBC and they have made an offer which I'm going to decline as it is less than half.I did find something on managed loans last night and the messages were STAY AWAY! which is what I've decided to do.can i just come to an agreement to say i'll pay a certain amount each month to pay the arrears off?And I know this isn't the right place but can you point me in the direction of the letter that says thanks but no thanks for the offer, I've looked everywhere and don't seem to be able to find it.thanks again.

[Jeff2000]

thanks for your reply, i am currently claiming back my charges with HSBC and they have made an offer which I'm going to decline as it is less than half.I did find something on managed loans last night and the messages were STAY AWAY! which is what I've decided to do.can i just come to an agreement to say i'll pay a certain amount each month to pay the arrears off?And I know this isn't the right place but can you point me in the direction of the letter that says thanks but no thanks for the offer, I've looked everywhere and don't seem to be able to find it.thanks again.

 

 

Hello hot mamma,

 

 

May I suggest that you accept their current offer as part payment only!

 

You can then continue your claim, but modified for the remaining balance owed!

 

This letter should help. It clearly states your intentions.

 

 

 

YOUR NAME

ADDRESS

ADDRESS

POST CODE

 

XX XXXX 2007

 

BANK NAME

ADDRESS

ADDRESS

POST CODE

 

ACCOUNT NUMBER: XXXXXXXXXX

 

Dear

 

Thank you for your letter dated XX XXXX 2007 and offer. Unfortunately, I do not accept your offer of £XXX as a full and final settlement, but will in this instance accept this amount as an interim payment, against the full amount requested of £XXX.

 

Please be advised I still request the full amount as final settlement as requested in previous correspondence. If the full amount of £XXX is not offered in the next X days, then I will send a Letter Before Action giving a further 14 days to reflect before continuing with a claim in court.

 

I would draw to your attention that, should the case be brought to court, then I will be claiming the outstanding amount as stated above, plus costs, plus interest, so it would be in BANK NAMEs best interests to refund the requested monies via cheque or credit to my account.

 

Also, please let me know if and when the interim offer will be paid to me.

 

I trust you will respond to the above, and look forward to such a response.

 

Yours sincerely,

 

 

 

You can of course modify this letter to suit your own particular circumstances.

 

 

Good luck, Jeff.

[hot mamma]

Thanks Jeff!!!

Haven't been on the site for a while and couldn't find the relevant info - didn't know you could do that, letter will be sent recorded delivery tomorrow.

Fingers x

HM.

[dpick]

Hi I agree with gizmo111 get an account with another bank as at any time they may decide to take all your savings and income paid in to your account to offset your overdraft and leave you with nothing. They could also cancel your overdraft.

 

It is more than likely they wont do the above but always better to be prepared for them if they do.

 

all the best dpick

[Jeff2000]

Hi I agree with gizmo111 get an account with another bank as at any time they may decide to take all your savings and income paid in to your account to offset your overdraft and leave you with nothing. They could also cancel your overdraft.

 

It is more than likely they wont do the above but always better to be prepared for them if they do.

 

all the best dpick

 

 

 

 

Yeah! NatWest have a basic account without credit checks, that you can set up direct debits and standing orders!

 

You also get a solo card, which is now starting to be more widely accepted!

 

 

 

Best wishes, Jeff.

[me_n_my_kids]

clydesdale do a readycash account, no credit checks, direct debits and standing orders are accepted, and you get a maestro card

 

managed loans - omg. stay away at all costs!!

[Jeff2000]

 

managed loans - omg. stay away at all costs!!

 

 

 

This should now go without say!!!

 

 

Jeff.