The account which i had is now closed and the Bank are persuing me for the outstanding balance (over £1000). They have passed it on to a debt collection agency who are sending me letters every other week! I would like to know if i am still liable to pay this outstanding balance and also if i am entitled to anything back. Any help would be greatly appreciated!
2006-10-23 22:35:30 · 11 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
How long did you have this overdraft? The interest on overdraft loans is very high so it doesn't take long to double the amount you borrow that way if you don't pay off the balance. You should be able to see on your statements how much of this is actually interest and how much is the overdraft itself. Those are usually the most expensive loans you can get.
2006-10-23 22:38:43 · answer #1 · answered by IC 4 · 0⤊ 0⤋
Firstly DO NOT let the debt collection agency intimidate you.
The charges placed on your account by the bank are not necesarily lawful. Write the debt collection agency a letter explain that you would be willing to pay back the original £500 and consider the matter closed, carefully explaining that you believe the bank in question have acted dishonorably. Which they probably have.
These charges would have been "administrative costs" for going over the limit but unless the bank is willing to prove they cost what they charged you, they are not legally enforceable. And no bank would want to prove that something they fined you £30 for only cost them £2.
If the debt collection agency refuses the offer. Write your bank a letter and tell them that you want them to Prove the costs and if they do not call the agency to alter the debt accordingly. You will persue evidence in court. It is 99.9% certain that the bank will do everything it can to avoid court as it is NOT in their best interests to release that sort of Information.
It is important that any action you take goes in writing as they don't take that as idle threats.
Goodluck
2006-10-24 14:13:12 · answer #2 · answered by re5al 1 · 0⤊ 0⤋
You might be able to settle on a one payment deal with the collection agency. This may take some finessing on your behalf, wether it's saying your broke and cant borrow it or just ignoring them for a while. Most of them after a month or so will make a one time deal for 1/2 to 3/4 of the principal amount, yours being 500 they might settle for 400-250. Speak with them though but dont be suckered into their threats!
2006-10-24 05:47:21 · answer #3 · answered by jls1znv9999 4 · 0⤊ 0⤋
not sure mate.
ask CAB and see what htey say!
i have the same, although i havent closed the account. I am paying £125.00 min every month in charges and its killing me! so therefore i end up in my overdraft again every month! its so cruel! im trying to claim some money back if i succeed ill let you know! good luck! best to call the debt agency and come to an agreement, they will ask all your income etc, lie a little and you may onyl have to pay £50.00 per month or something.
2006-10-24 05:39:20 · answer #4 · answered by caroline17nov 3 · 0⤊ 0⤋
the debt collection agency will be adding charges for the privilege of sending you those letters....every week you leave it, the charges will be mounting. do something now or it will only get worse.........As you have not bothered to do anything about it up until now, you are unlikely to be able to have any charges removed....the best you can hope for, is not to have any further charges added
2006-10-24 05:56:05 · answer #5 · answered by SeabourneFerriesLtd 7 · 0⤊ 0⤋
Try this website www.moneysavingexpert.com it tells you how you can take on the bank and claim your charges back. The guy that has started this website appears on GM TV a lot and has had many people contact the programme saying that they did manage to claim their charges back.
Good luck!
2006-10-24 05:43:46 · answer #6 · answered by chelle0980 6 · 0⤊ 0⤋
I am not sure but you could try Martin Lewis's web site - www.moneysaving expert.com. He is on Radio 2 regulary and knows his stuff. Earlier this month his slot was on reclaiming bank charges. It is an excellent site - give it a try and good luck
2006-10-24 06:03:23 · answer #7 · answered by John H 2 · 1⤊ 0⤋
Well you spent the money that you didn't have so yes, you should pay it back.
And why o why would you think that you would then get anything even resembling a refund for having not paid off your charges and overdraft?
2006-10-24 05:43:39 · answer #8 · answered by sarcasticquotemarks 5 · 0⤊ 1⤋
Just curious was this due to Check 31? I got burned when that rule went in to affect Oct. 1st. I had $500 in fees. Which made me want to throw up when I learned about it. I raised cain at my bank & got it reimbursed.
2006-10-24 05:51:48 · answer #9 · answered by OZzY MoTo 2 · 0⤊ 0⤋
Thats the way it goes, its called consequences and im afraid one way or another you will have to pay.The longer you leave it the worse it gets
2006-10-24 05:42:13 · answer #10 · answered by Clarky 4 · 0⤊ 1⤋