www.iva.co.uk

Dear All,

I have received a letter from Nat west recently, under heading Terminated overdraft.

It says that they are obliged to send this under comsumer credidact.It details an amount of 1297 and says that until debt is paid a notice may be sent periodically.

The letter also adds interest for october and november.

The account was joint account, so my wife has also been sent a letter.
But she agreed and paid a full and final settlement a few months ago,has paid it and has a letter from Nat west.So she should not have received a letter either.

When I phoned,They said it is new rule passed in october by Govt and they have to send these letters.

I phoned My IVA firm and was told that many cleints have received these letters and not worry.she has asked for copy letter.

Nat west is aware that they are aware that I am in IVA.

As I am in IVA they should not be sending these l;etters and adding interest as well.

They should not be sending these letters to my wife as she has agreed and paid a full and final settlement.

If they keep sending these letters I am not sure where we legally stand.

As I understand I should not have received aby letters.

Natwest has given me the adress and asked me write to their customer service dept. who are obliged to write back to me in 2 days of receiving my letter.

I am extremely worried, can the experts and members give their opinion please.

Merry Christmas and a Happy new year to all.

With regards.
Hara.

It's been mentioned on the forum about the letters. Apparently this is a new thing and they can send them to you. Not sure about the interest though, I'm sure Melanie will be along to advise you.

Hi.

When ever a new law is passed everyone panics to ensure they are complying. The banks are no exception and I am sure that they are being ultra cautious at the moment in light of the recent claims that the credit agreements they had entered into with borrowers were invalid which has cost them millions.

I would imagine that they have basically just set their systems up to generate standard letters to everyone, regardless of any arrangement that they have come to with their customers.

If your wife has settled her liability with NatWest then I agree that she should not have had the letter. I also agree that interest should not be accruing on your liability, however if you are in an IVA they are not legally allowed to claim it from you (either within our outside of your IVA).

I would suggest that your wife writes to NatWest as suggested by them and asks them to amend their records accordingly. With regards to your letter, I would recommend that you pass it onto your IVA company and let them deal with it.

As your IVA company has said, please do not worry, I am sure that it is just a result of letting the computers do the work of real people.

We are anticipating that the banks will shortly change their policy on sending out this type of letter to their customers who are in formal insolvencies, as it clearly is a waste of time - but Elizabeth is right in that they are just making sure that they are fully compliant with the new legislation.

Remember what you owe to NatWest is what was outstanding at time of your IVA and cannot be increased by interest or other charges. As long as you keep to your terms of the IVA (subject to any future variations) the debt will remain as is and NatWest will receive whatever dividend comes out of your IVA - best to ignore the letter or send it to your IP.

Hi
Hara, does your wife have an IVA ? If not then she will still be liable for this debt.

Regards

Dear Mr.Davie,

My wife is not in IVA.

Nat west wrote a letter a few months ago and a payment of 35 pounds was arranged and paid for a couple of months.

Then Nat west came with a proposal of payment of 1500 as a final settlement,which she paid.She has a letter from Natwest for receiving such a sum as full and final settlement.So her part debt is also settled.Hence She should not have received a letter as well.

So the is settled.I am going write a letter to Natwest and also ask my wife to write a letter as she has paid 1500 asw full and final settlement.

Thanks.
Hara.

Hi
That's fine, I remembered that you have an agreed full and final settlementment for your IVA, couldn't remember if your wife was also in an IVA.
Regards

Dear Mr.Davie,

I think I made good f&f proposal. It is to pay a reduced amount of 500 per month for 11 months,then a lump sum of 44,000. My house which had a 4th year clause has been released. Also if I can pay lump sum and payment eqiuvalent monthly payments minus no of months paid earlier,that would conclude IVA at that point.

I feel Grant Thornton has been good in obtaining the deal.

I am almost there.

Thanks.

Hara.

That is good news - well done and merry xmas.