Changing banks

[Clairbare]

OMG, all dd's cancelled with bank and transferred to new one - no money in our old account and we were only £5ish overdrawn - now they have gone and taken money from our account to make us more overdrawn!! I had sent letters off and made token payments - all they have done is increase the amount we owe them by making us more overdrawn!! can they do this?? should i call them?

[Debtwitch]

Hi Clair

The bank will be able to apply charges for unauthorised overdrafts, but they may be sympathetic if you speak to them directly and refund the charges.

[steppingstones]

I think they can. My old account was with Lloyds and although I cancelled the DD's for the Lloyds loan and credit card they took the dd's anyway and my old account went really overdrawn. I just keep printing off the statements to send to Melanie so she knows what the balances are.

[Clairbare]

yes it is with Lloyds - we have an agreed overdraft of £250 so we have not exceeded that but if they keep taking money it will get messier - and they have letters of intention and token payments, they know our situation!!

[steppingstones]

I've not liked dealing with Lloyds, I have found them to be quite unsympathetic in the past. And now that they have debited money from my account it has taken me over my agreed limit. Oh well, hopefully the statements I have requested from my other creditors come through soon so that I can send the last of them off to Melanie and she can put my proposal together.

[Clairbare]

Good luck Sally, have you had many phone calls from your creditors too? Did you call Lloyds or just leave them to do their work on your bank account?

[debtfree-wannabee]

OMG - I still have all that to come as soon as I have the account numbers I will be cancelling all DD's.

Melanie - its such a small world. It has changed a bit here in the past few years. I look forward to meeting you in the future.

Kath

[steppingstones]

Hi Clair, I initially contacted them to explain why I cancelled my dd's, but seeing as they have decided to do their own thing I have left them to it and have not called them again. MBNA phoned me quite a lot at work but eventually I got through to their financial specialist dept. And told them I was hoping to propose an IVA and to please stop calling me at work, and to be honest they have stopped phoning my work no. Other creditors are so far just sending me letters that I am compiling for Melanie.

[Clairbare]

Yes we had MBNA calling work number so I told them if they wanted ANY money from us they needed to stop otherwise my husband would risk getting sacked (personal calls in open plan office - one got through to a director too!) We are hopefully just gonna ride it out - i feel i have read enough on here to deal with the calls in the best possible way.
Update for us is our mini-proposal has gone to Lloyds (well it might not be the mini proposal) but either way the ball is in their court at the moment - if they say No Way then its all over A possible week to wait - I might take up biting my nails again but its taken me years to grow them!!

[debtfree-wannabee]

Clairbare - what is a mini-proposal?? I haven't heard of that before.

[Clairbare]

Well over 75% of our debt is for 1 creditor - their rules are that any debt over 75% will be an instant decline for an IVA - our IP has suggested they go to the creditor with a mini proposal outlining our entire situation then ask them to "not say no" to the proposed IVA and see what happens. It is not really worth doing a full proposal to all our creditors at this time as the highest risk is just this one creditor.
I hope this makes sense (this is just how i perceive it it) if not i am sure maybe an expert will see this and make it clearer!

[debtfree-wannabee]

Thanks for that - I understand. Its certainly not worth waiting for weeks and weeks if they are just going to say no. Good Luck

[Clairbare]

Thank you, you too

[kallis3]

I'm afraid that the old banks will continue taking out payments for their loans until such time as your IVA is approved. HSBC did this to me every month.

The good thing is that the charges and interest will be included.

[Clairbare]

Thanks Jan
Will just have to sit tight and continue with the token payments.
The good news is the mini proposal as not declined, this means that the IVA proposal can be put forward - Lloyds could still say no but they have at least agreed to look at it rather than refuse outright.
Still a long way to go yet but here's hoping - Mel and her team are doing a fab job and seem to be there 24-7!!