Nationwide withdrawing overdraft

[Its WAR]

My son has a £1000 overdraft facility but Nationwide have written and asked that I bring the account back into credit within the next 14 days. Can threy do that?

The overdraft consists of about £500 of charges and interest and I have asked for it back.

I intended to leave the account dormant until the bank charges were repaid. I have requested a cca.

Whats my next move?

[indebtstudent]

Yes they can an overdraft is an on demand form of borrowing. This means it can be withdrawn at anytime. However you and I both know if every person and every business had thier overdrawn withdrawn the country would grind to a halt.

I would say the best you can do in this situation is write to them showing you budget, and attempt to agree an affordable payment schedule for the £500 approx which is a bonafide debt. I would point out that you dispute the charges and associated interest and are not prepared to make a payment towards that balance until the legailty of the charges has been determined.

I doubt they wil agree to this BUT the curcial thing is it gives you more ammo for later on if they put defaults on your credit file in relation to this amount. You have advised them it is in dispute and therefore they should not touch your credit rating until the dispute is solved.

Others may be better able to advise on the exact wording to use.

[Its WAR]

The trouble is, they do attack your credit rating despite the disputed account. And we can do little or nothing about it.

[MilkTrayMan]

Originally Posted by haydn

I have a £1000 overdraft facility but Nationwide have written and asked that I bring the account back into credit within the next 14 days. Can threy do that? YES...They can also off-set the debt by monies from any other Nationwide account that U may hold with them too.

The overdraft consists of about £500 of charges and interest and I have asked for it back. U will probs have to do more than just ask + have to proceed all the way to filing your claim at court.

I intended to leave the account dormant until the bank charges were repaid. I have requested a cca. If my memory serves me correctly, a CCA is NOT applicable to an O/D.

Whats my next move?

Carry on with the unlawful penalty charges claim.

[Its WAR]

Just opened my post.

One Default notice.

Two weeks ago, Nationwide told me they were withdrawing my £1000 facility because I had exceeded the overdraft (it reached £1070) because they applied bank charges. They said the overdraft would expire on 25th Sept. unless I paid the overdraft off by then.

I immediatly complained and placed the account on dispute. The complaint went unanswered.

So despite the dispute, the default notice is issued on the 24th Sept, one day earlier than they said. The notices says that I must pay off the overdraft by 8 Oct or they "may commence legal proceedings to recover the overdraft in full". Thats the only threat, apart from I guess the Default registered on my credit file.

The thing is, the overdraft comprises of around £500 of charges and if they issue the summons, I expect it will be stayed.

I have now prepared my summons for the charges and interest, but what should I do about the default notice? Or do I let them issue their summons instead? I favour me sueing them, but how do I include the default notice in the particulars, if they havent yet issued the default notice? I guess I have until the 8 Oct to pay off the whole sum before they tell the credit reference agencies about the default notice. The default notices says that if I pay, then no further action will be taken. It doesnt say if they have actualloy made an adverse report to the credit reference agencies yet? I guess they do that once they actually issue the default notice, so I expect they have made the adverse report.

[indebtstudent]

"The trouble is, they do attack your credit rating despite the disputed account. And we can do little or nothing about it."

Isn't there a thread somewhere saying you can take action against the CRA's themselves if they hold (and thus provide) inaccurate information?

If you are feeling cheeky I would point out that, if they initiate the legal action they threaten you will counterclaim for the charges and interest. I could be wrong in this as the waiver is not my speciality (I hate it with a passion but that's another story) would NOT apply if they took enforcement action - can someone advise on this?

Sadly the reverse is not true if you sue THEM the case will be stayed.

Milktrayman is correct a CCA is not relevent to an overdraft.

If you believe the overdraft facility has been removed BECAUSE of the charges then it is worth going to the fos on that point alone. I don't what criteria they use but I would say if the account wasn't being used, ie no regulare credits or payments out, then they could justify this action on the basis that it is normal business practice.

At worst you have a stalemate, with the proviso that they WILL put something on your credit file. You can check this using a free trial or paying the £2 and doing it by post. Quick thing you should od is get the CRA to put a note on explaining the situation.

If you have a lot of time on your hands or feel strongly about it search for some of the threads where people are challenging the CRA's. And before you ask yes they do just accept whatever the banks tell them at face value.

[Its WAR]

Are you saying that if they sue me, the court wont stay their claim? Sounds good to me. But I would still prefer to sue them. Its ok for the case to be stayed, apart from the time the default will remain on my file. I just dont want the default to be on my file and they shouldnt get away with it. So I need to add those details to my summons and issue the action and just put up with the default notice. Apart from writing the letters I suppose.

[indebtstudent]

I believe so, which is why I think the legal action thing is just hot air.

I'm not 100% though, perhaps someone else knows for sure?

[MilkTrayMan]

Add the cessation of the processing + complete removal of the Default from your credit report as part of one of the conditions of satisfaction in your unlawful penalty charges claim.

[indebtstudent]

Milktrayman am I correct in thinking that if they engage in enforcement action then the claim would not be stayed?

[Its WAR]

Letter from Nationwide today. It says they have sent my correspondence to another dept to be resolved. Thats all. The thing is, the default notice deadline expires today. Time has run out because they have not dealt with the correspondence in time.

I still deem the default notice as flawed. But have confirmed that I am happy to settle the overdraft but exclude the charges. If they agree, I will send them about £500, if they dont agree they get nothing until after the High Court finally decides.

[MilkTrayMan]

Nationwide, like many of the High Street Banks, have a history of proceeding to recover monies which include unlawful penalty charges unfortunately.
...Their argument is that they view them as being 'fair & transparent' etc etc.

However, as ids has already hinted at, the 1st stage of successfully recovering debt is to threaten court/defaults etc unless the debt is paid by a certain date.
In many cases, this filibustering alone would be enough to jolt a full repayment.

If Nationwide were to commence court action, it would be down to the defendant to counterclaim whatever they chose to, however it's my understanding that the case would proceed via the primary claim that was intially brought.

The following link will help give an oversight to the entire court proceedings, if indeed it is taken that far by Nationwide...

Making a Claim

Notwithstanding any legal action that Nationwide may or not bring, it is important that a claim for unlawful penalty charges is lodged as soon as haydn can (...bearing in mind CPRs about attempting to avoid having to start court action unless as a matter of last resort. ), so that his account 'being in dispute' is somewhat legitimised, in the event of any further complications. i.e. the removal of a Default on his account in his credit report.

[carolan78]

If they take you to court for it and you then counterclaim for charges they will ask for a stay. I am still waiting to hear if my case is stayed.

[Its WAR]

Nationwide have ignored my correspondence. The deadlines have been exceeded while I have waited for them to reply. So now the overdraft has been withdrawn and it is now all unauthorised. Because it hasnt been repaid, it is also in default. All because Nationwide didnt correspond. I shall issue the summons tomorrow.

[MilkTrayMan]

A Preliminary Letter would be needed to be sent 1st hadyn.
...Then a letter before action Letter.
...Finally, an application to your local county court.

[Its WAR]

I have already done those. I note that the default notice didnt allow the full amount of days, they missed off the postage days delays. Any ideas how to add that to my particulars of claim?

[indebtstudent]

"they missed off the postage days delays"

Which given the current strike will be longer than nomal

[MilkTrayMan]

I'm not aware that Nationwide share Flexaccount standings with CRA's tbh.

They certainly didn't add any info about MY Flexaccount on any Credit Report I've seen.
...Although I know that they DO process Personal Loan details.

[Its WAR]

Just adding the finishing touches to my summons. Should I add anything at all about the defective default notice which hasnt allowed sufficient time for payment and has required total payment rather than the amount that exceeds the facility. Although the facility terminated on 25th Sept, the default notice was dated 24th Sept. Nationwide did not renew the facility.

[Its WAR]

Summons issued.