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AIBU to panic over this letter from the bank

(20 Posts)
Ohdearymee Fri 26-May-17 23:45:29

unexpectedly become a single mum - not yet receiving child maintenance. Had a reasonable income before so have a large overdraft and bills/everyday expenses have been coming out, now at around -£3000. Had a letter I found down then back of the radiator from over a month ago, the bank trying to contact due to lack of money going into my account, also with a thinly veiled threat to demand all the money back at once (which I don't have!!!)

AIBU to freak out? I'm on the verge of a panic attack.

BlondeB83 Sat 27-May-17 00:22:58

Calm down, breathe xxx talk to the bank xx

Seren85 Sat 27-May-17 00:25:16

Try to stay calm. Yes, they do have the right to demand the whole lot back but the reality is they will probably work with you. Speak to them and explain. It may end up in collections where you agree that it is reduced by X amount per month and confirm what will be going in each month. Honestly, don't panic but ring the bank asap. Best of luck.

Tazerface Sat 27-May-17 00:26:54

So long as you are not abusing the overdraft they won't just remove it.

Calm down. The letter is over a month old. They're not going to do anything over a bank holiday weekend.

Asmoto Sat 27-May-17 00:28:50

Phone your bank and explain your circumstances. Banks are obliged to treat financial difficulties 'sympathetically and positively'. Your bank should take you through your income and expenditure, and work out a realistic plan for reducing your overdraft on a gradual basis - they might also be able to suspend overdraft fees for a period, say, until your child maintenance comes through. If your bank tries to insist on immediately withdrawing the overdraft, contact the Financial Ombudsman.

Talkingfrog Sat 27-May-17 00:30:17

Sorry to hear of your problem. I can't imagine it will be easy, but I would speak to the bank and explain the situation. I would imagine that if you can show them that you will start to pay some of it back it would help. I think citizens advice can also help with money issues and budgeting. Unless you know you are coming into money the problem won't go away so the earlier you deal with it the calmer you will feel. Good luck getting it sorted.

Ohdearymee Sat 27-May-17 00:31:37

Thank you all flowers

It's taken my by surprise because I've always tried to manage my finances well and keep a good credit score. I planned to go back to work and was also expecting a lot of money from XDP as he has a good income. Haven't had a penny from him and can't file for maintinence until I get child benefit which is a few weeks away.

Worried they'll demand the overdraft back as it was approved when I was on a regular income and now I have zilch - doesn't look like I'll be able to go back to work for a year or more as my workplace doesn't do childcare vouchers or anything.

Planned to be a SAHM until DC starts school.

Trying not to panic 😩

Ohdearymee Sat 27-May-17 00:32:52

If I speak to the bank and get some kind of repayment plan in place will it damage my credit score? Was hoping for a mortgage in the future 😥

Ohdearymee Sat 27-May-17 00:36:25

My car is worth around £1000 - if I sold it and paid this in to make a dent in the debt would it put me in better standing with the bank? Sorry for all the questions

avamiah Sat 27-May-17 00:38:51

Don't panic,just give them a call or if I was you I would just pop into your local branch and make a appointment if they can't see you there and then.
Banks at the end of the day want to get their money back, but if you explain your situation they will allow you to come to a monthly arrangement to pay the money back and this will stop any further action being taken .
The worst thing in my opinion is to avoid letters and phone calls, as it does more harm then good.
Make that call .

Asmoto Sat 27-May-17 00:39:11

Don't panic - I am sure it will be fine. Your previous good credit history will help you here. Banks have to adhere to a code (BCOBS) which explicitly states they must deal fairly with customers in financial difficulty - if they don't do this, the Financial Ombudsman should be able to step in if you contact them. However, it's in the bank's interests to have you repay the overdraft over a reasonable period, rather than incur losses by passing it to collections agents, so they should be happy to work with you to agree a solution.

avamiah Sat 27-May-17 00:42:32

Yes, Asmoto is 100 percent correct.
If you set up a arrangement and stick to it then there will be no further action.

Empireoftheclouds Sat 27-May-17 00:42:36

So you have an account that demands a minimum payment every month? Mine is £1000 and if I go below that they would write to me as o would no longer qualify for that particular current account. This is irrespective of any overdraft

Ohdearymee Sat 27-May-17 00:44:16

Yes I'd never ignore a letter from the bank- so glad I found it behind the radiatior. Feel so awful for getting into this position. I have new found empathy for anyone with debt.. I can't believe how easily and quickly this happened confused

Ohdearymee Sat 27-May-17 00:49:45

Thanks for the helpful comments!

To break it down:

£1200 is my current account overdraft which is where my bills/expenses come from. Used to have money coming in regularly, had practically nothing for a few months now.

£700 is on a credit card. I've been making the monthly minimum repayments (from my current account so not lowering debt)

£1000 is an overdraft from student account (I was studying while working) so it has no interest but now I'm not studying from the next academic year I believe it starts getting charged interest

Ohdearymee Sat 27-May-17 00:56:22

Some of the letter

HaveAWeeNap Sat 27-May-17 01:00:06

Ring them, discuss the situation, make notes.
Then take stock of where you're at and next steps.

avamiah Sat 27-May-17 01:02:32

It's a standard letter that banks send out.

Asmoto Sat 27-May-17 01:04:12

It's clear from the letter that they want you to make a payment arrangement, to avoid cancelling the overdraft. In the unlikely event they were to renege on that, you would only have to forward that letter to the Ombudsman to have it overturned - as long as you contact them ASAP you should be fine. If they query any delay in contacting them, explain your difficult circumstances (unexpectedly becoming a single parent) - they are legally obliged to treat you sympathetically so don't settle for unfair treatment.

Talkingfrog Sat 27-May-17 01:40:36

It is worth checking the situation on the student overdraft - although you may not
be studying if you are not getting an income it may change things. I would also try to pay a bit more off the one with the highest interest rate first, which may be the credit card. The bank should offer some advice but cab may also be aware of other entitlements. I saw a facebook post about a reduction in water rates recently which wasn't well publicised. As a result a number of other people found out thry were also entitled to a reduction. Do not know your situation, but I assume you have looked into whether you can have a reduction on your council tax if there is only one adult. Would you be able to claim anything in the way of benefits? How old is your little one. Depending on age and council you may find you could get some free childcare at some point (e.g. instead of a nursery place).

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