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Original poster

Went overdrawn, got charges lots of them, couldn't afford to pay and now being taken to court...help please

23 replies

Quadrophenia · 28/11/2006 10:44

Last year i opened a Bank account, had always had building society accoutns prior to this. Went overdrawn and presumed it must be an authorised overdraft as with my BS account once it gets to £0 you can't draw anymore. Anyway was informed it was not authorised and ordered to pay it back which I really couldn't afford, a £270 overdrfat then pretty quickly with charges etc turned into a £472 debt which obviously i still couldn't afford to pay. Have just had a letter from the courts asking for £572 (£100 costs) and I really cannot afford it and am completely devastated that s relatively small debt has increased in this way. Is it worth me disputing the claim or should I just pay it all back charges and all. Do I have a leg to stand on if i dispute it?

OP posts:
lulumama · 28/11/2006 10:48

surely they would have contacted you before getting the courts involved? seems a bit heavy handed

go to the CAB..

write to the bank immediately , tell them you have no way to afford this..include details of your income and outgoings ..offer a token payment £5 a month ?

seems odd they have not called / written before this....sounds a bit full on..will cost them more than what you owe to take you to court as what you owe if they are using solicitors etc

Original poster
Quadrophenia · 28/11/2006 10:51

It was passed on to debt recovery who asked for full amount which I could not pay and has now gone to this

OP posts:
lulumama · 28/11/2006 10:52

did they not offer you a payment plan? or did you not offer one> have you had any contact with them ..written to them to explain the circs or called them at `all?

Piffle · 28/11/2006 10:53

You must have had correspondence fromt he bank before now surely?
Best tip I was given was work out how much you can afford weekly. pay that amount in monthly, cash into the account to show you are trying to pay it off. Send a very hard for court to default/judgement on you if you are paying it off, however little it is.
A CCJ will only give the bank the same result.
Banks are arseholes when you're in debt, quite happy to let you toddle off into the debt though.
also worth reading the bank charges thread as charges over £12 have been deemed unreasonable by banking regulator so you may have some luck with appealing the amount - but generally when it's gone this far, banks are pretty heavy handed.

Piffle · 28/11/2006 10:53

pay it in weekly I meant...

lulumama · 28/11/2006 10:54

TBH..if it does go to court..and you admit you are liable...if you can show that your income and outgoings preclude you paying back a lump sum..the court are likely to order you to pay it back at a small weekly amount.

if it is a small claims, then you don;t need a lawyer...CAB might be able to find you free legal representation and some firms have free legal clinics...

Original poster
Quadrophenia · 28/11/2006 10:55

Have spoken with them on several occasions have offered them money payed £20 last month then got a letter a couple of weeks later saying I was being taken to court. didn't act on it as I presumed my payment hadn't yet registred, then big brown envelope on my doorstep this am. Part of this i accept is my difficulty in dealing with it, we live incredibly hand to mouth so its hard to offer anything.

OP posts:
Original poster
Quadrophenia · 28/11/2006 10:57

there is a bit on the back of the form which I can fill in to offer a small weekly amount just can't believe that it has grown into such a big debt. feel completely irresponisble, wish i could appeal it but I gues i should have done that before now.

OP posts:
Piffle · 28/11/2006 10:59

whatever you can afford offer it, even if it is pence,
it will avoid a ccj which will eff up your credit rating for seven yrs.

LadyOfThePoinsettias · 28/11/2006 10:59

i work in a bank.
they cannot make you pay anything. your priority things to pay are water, food, gas, electric etc, personal debts come bottom of the list, no matter how they came about.
open a bank account somewhere else and pay into this account £5 per month or whatever you can afford.
first though, write to the bank explaining you cannot pay and offering £5. They will respond saying that £5 is not enough but they will not send your money back either so by law, they have actually accepted your payment.I assume you have received paperwork from the court? Does is have a court stamp on it? fi not, this is simply harassment and is illegal, but a lot of banks do it.

Original poster
Quadrophenia · 28/11/2006 11:00

am going to fill it in now, really don't want a CCJ am so pissed of with myself and just the crapness of it all

OP posts:
Original poster
Quadrophenia · 28/11/2006 11:01

it has court stamp on, thanks btw everyone

OP posts:
Piffle · 28/11/2006 11:02

Been there done that Quad
Sorry it's such a rough time for you I know how easy it is to fall into it when you live hand to mouth
it sucks big time.

charliecat · 28/11/2006 11:03

I have a friend who has done this with ever bank account/credit card shes ever had. She writes a letter saying she cant afford it, sends a ten pound cheque once in a blue moon when the letters gets threatning.
None of them have got to the court stage though.

Original poster
Quadrophenia · 28/11/2006 11:06

Thanks Piffle it does suck, I don't mind being poor but I hate lining the pockets of HSBC with my few quid in charges when they rake it in each year it seems so unfair but is my own stupid fault.

OP posts:
lulumama · 28/11/2006 11:07

it is a massive PITA , quadrophenia

but ..am i right in saying that if you start paying now then you won;t get a CCJ....if you make payment plan and start paying before it goes to court?

write to them today and send it recorded or even hand deliver it

need to include your income./ outgoings to prove you cannot pay it all..

fizzbuzz · 28/11/2006 11:08

They aren't supposed to charge more than £12.00 bank charges for overdrafts etc. Charges higher than £12.00 were deemed unfair by OFT. If I have read your post properly, you have some pretty hefty bank charges in there, which you should challenge at once.

This should reduce your debt.

The Halifax tried to charge us £90.00 charges, we challenged them and got the lot back. Hope this helps.

Original poster
Quadrophenia · 28/11/2006 11:10

If I send it off in 14 days and offer a satisfactory amount then it can be sorted without a CCJ. Thing is its just fallen at a particulalry bad time for us, our heatings broke down, my roof is leaking and I haven't thought about christmas much at all, am due some money in a week or so but it is all going on sorting out the house stuff. it never effin rains it effin pours, dp is going to be very cross with me !

OP posts:
Original poster
Quadrophenia · 28/11/2006 11:11

if i challenge it though Fizzbizz then i will probably have to go to court because of how far its got, and I'm not sure i relish standing in a court, i will most probably cry. yes the charges are huge though you are right.

OP posts:
lulumama · 28/11/2006 11:13

get it sorted within the 14 day limit...then it can be dealt with in a less scary way than going to court

Original poster
Quadrophenia · 28/11/2006 11:15

thanks lulumama
just coming on here tp talk about it has made me feel better x

OP posts:
fizzbuzz · 28/11/2006 11:19

Why will you have to go to court to challenge it?

lulumama · 28/11/2006 11:20

no worries......when living hand to mouth ,things can get out of hand and scary very quickly...no shame in that,.you only have to look around to see how many people are struggling and getting into debt .

if you can get it dealt with before it goes further, you will feel much better....x

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