Old forgotten bank account, and Student Loans Direct.

[thejoz 0]

My parents received a letter for me at my old home in the UK the other day from my bank. I asked them to open it for me, and it was a letter informing me that it had been a long time since I last accessed the account, and did I still want to use it? If so, I need to send them a form stating such by February 2010.

I had largely forgotten about this account. I originally didn't close it when leaving the UK, as at that point I was concerned as to what might happen in the future. What if I got denied and had to return home at short notice, for example? I decided, therefore, to transfer the bulk of my finances to my husband and I's (now) joint account, and leave just under 250 pounds there, in case of dire emergency.

Now, I'm not sure what to do. As I now have my Green Card, my status is a lot more stable, and I feel that I could safely close the account. (Can I even do that from overseas? Could I get them to transfer the remaining money to me at all?)

HOWEVER.

I also have student loans with Student Loans Direct. As yet, I haven't paid anything off, as I haven't reached the repayment threshold, but I realized that this bank account was the one I originally gave them when I went into repayment for the loans. If I close the account, will this cause dire problems when I come to repay? What is the best way to repay, anyway, when you're overseas - has anyone done it? Did you use Direct Debit with a UK account, or some other method?

I don't want to screw myself up, but I also don't want to keep this unnecessary "tie" with the UK if I don't have to and have it present any kind of problem when it comes time for Removal Of Conditions or citizenship.

[SunDrop 59]

My parents received a letter for me at my old home in the UK the other day from my bank. I asked them to open it for me, and it was a letter informing me that it had been a long time since I last accessed the account, and did I still want to use it? If so, I need to send them a form stating such by February 2010.

I had largely forgotten about this account. I originally didn't close it when leaving the UK, as at that point I was concerned as to what might happen in the future. What if I got denied and had to return home at short notice, for example? I decided, therefore, to transfer the bulk of my finances to my husband and I's (now) joint account, and leave just under 250 pounds there, in case of dire emergency.

Now, I'm not sure what to do. As I now have my Green Card, my status is a lot more stable, and I feel that I could safely close the account. (Can I even do that from overseas? Could I get them to transfer the remaining money to me at all?)

You can close the account, simply by writing to them and instructing them to close it. Yes, you can transfer the remaining money but I would suggest that you actually don't do an international transfer because they charge you through the roof for it and you don't get the best available exchange rate.

Did/ do you have a cash point card for the account and if so, can you arrange for your folks to withdraw the money on your behalf? What about a cheque book and writing your folks a cheque for the balance. It would be cheaper to then get it converted into dollars at M&S or somewhere that gives decent rates and wire the funds to you via Western Union or a similar method.

Alternatively, set up a couple of paypal accounts, one for your US account and one for the UK account and simply paypal yourself the funds.

I also have student loans with Student Loans Direct. As yet, I haven't paid anything off, as I haven't reached the repayment threshold, but I realized that this bank account was the one I originally gave them when I went into repayment for the loans. If I close the account, will this cause dire problems when I come to repay? What is the best way to repay, anyway, when you're overseas - has anyone done it? Did you use Direct Debit with a UK account, or some other method?

Double check by contacting SLD what the terms of repayment are. I believe that until you are earning £x,000 p.a. in the UK, they cannot recover the loans.

I don't want to screw myself up, but I also don't want to keep this unnecessary "tie" with the UK if I don't have to and have it present any kind of problem when it comes time for Removal Of Conditions or citizenship.

If they are willing for you to keep it open, you may as well. You never, never know what the future holds and believe me, it's pretty difficult to re-establish yourself in the UK even as a citizen. What's the harm in having it, just in case... I would withdraw the funds though. Most UK banks don't require a minimum balance to keep the account active, but double check with them.

Edited November 30, 2009 by SunDrop

[Lansbury 19]

Keep the account open. You never know when it might come in useful and it is just about impossible to open a UK account if you live overseas. Keeping it open will not cause you any problems at all save it you have more than $10k in accounts outside the US you must declare them to the IRS every June.

I kept a NatWest account and it has not been a problem at all.

[AdamF 1]

My parents received a letter for me at my old home in the UK the other day from my bank. I asked them to open it for me, and it was a letter informing me that it had been a long time since I last accessed the account, and did I still want to use it? If so, I need to send them a form stating such by February 2010.

I had largely forgotten about this account. I originally didn't close it when leaving the UK, as at that point I was concerned as to what might happen in the future. What if I got denied and had to return home at short notice, for example? I decided, therefore, to transfer the bulk of my finances to my husband and I's (now) joint account, and leave just under 250 pounds there, in case of dire emergency.

Now, I'm not sure what to do. As I now have my Green Card, my status is a lot more stable, and I feel that I could safely close the account. (Can I even do that from overseas? Could I get them to transfer the remaining money to me at all?)

HOWEVER.

I also have student loans with Student Loans Direct. As yet, I haven't paid anything off, as I haven't reached the repayment threshold, but I realized that this bank account was the one I originally gave them when I went into repayment for the loans. If I close the account, will this cause dire problems when I come to repay? What is the best way to repay, anyway, when you're overseas - has anyone done it? Did you use Direct Debit with a UK account, or some other method?

I don't want to screw myself up, but I also don't want to keep this unnecessary "tie" with the UK if I don't have to and have it present any kind of problem when it comes time for Removal Of Conditions or citizenship.

Are you sure you gave the Student Loan company your bank account details? They take the money direct from your payslip via a PAYE type scheme and not by dipping into your personal bank account.

That is my understanding anyway

Thanks,

Adam

[thatbritishlass 2]

I also have student loans with Student Loans Direct. As yet, I haven't paid anything off, as I haven't reached the repayment threshold, but I realized that this bank account was the one I originally gave them when I went into repayment for the loans. If I close the account, will this cause dire problems when I come to repay? What is the best way to repay, anyway, when you're overseas - has anyone done it? Did you use Direct Debit with a UK account, or some other method?

I don't want to screw myself up, but I also don't want to keep this unnecessary "tie" with the UK if I don't have to and have it present any kind of problem when it comes time for Removal Of Conditions or citizenship.

For the bank account thing I would keep it. As many have said you never know what the future holds...and there's no harm to it. Much as I currently use my Nationwide account when I go to see the Boy because I pay very little in terms of overseas fees, I'll probably use it once I've gone over on my return trips to the UK

Regarding the SLC, once you reach the repayment threshold if you are overseas you have make payments directly to them rather than them taking it automaticlly via PAYE - at least this is what I understand. You declare your earnings once per financial year and they calculate your repayments monthly. So therefore from a student loans perspective it doesn't matter whether you have a UK bank account or not

J

[SunDrop 59]

Regarding the SLC, once you reach the repayment threshold if you are overseas you have make payments directly to them rather than them taking it automaticlly via PAYE

If this is the case, then I would definately leave the account open and the balance in it. They'll set up a direct debit and you don't have to remember to make the payments. If the dollar drops or when it's low, buy pounds sterling and top up the account. This way, in case it gets anywhere near $2:£1 again, you're not going to be much worse off. Also means you can easily do things like buy wedding/christmas prezzies or just send folks a cheque if the mood so takes you. I'm not going to be in a position to do this for a couple years at least, but I'll want to be able to 'when I grow up'. lol...

[Gemmie 142]

Hmm I'm kinda in the same position so this thread was helpful to me too.

Regarding SLC... I was told that I MUST inform them if I leave the country or they have the right to fine me for a lot of money. When I went to download the forms to send them, the focus was all about my job in the other country. Since I was ovbiously not employed in the US, I just left it (as well as having a list of other things to do before I left). Am I right in assuming it will be OK if I just inform them and fill out this form ONCE I have a job in the US?

Also, the repayment threshold is lower here, the last I heard it was $12,000. As soon as you earn that annually, it's repayment time.

Edited December 2, 2009 by Gemmie

[TeamMoran 0]

My understanding of the SLC situation is that the onus is on you to give them details of your new address, and income, and arrange monthly payments to them.

The threshold for repayments is calculated by the SLC annually, based on cost of living indexes, and is currently £12,000 equivalent. Anything over that, you pay 9% of to SLC. All fine and dandy, until you work it out... Unless I start earning A LOT of money, I won't pay it off. I'll barely even dent the annual interest on my loan, which until the interest rates were cut was piling up at something like £70 per month! So I have to earn over $35k to even cover the interest.

There is the option of not informing them. I don't know how likely they would be to find you, but if they do, and in extreme circumstances, they can demand payments of about £296 per month (from memory). I don't fancy risking that!

[Captain Oates 911]

I echo that you should keep the account open as it's very hard to get an account once you are non resident.

People pine to have one and you have one - so don't give it up

I have only found one way to open a mainland account and that is via national savings and investments (the bank of england - the government). You can open an easy access account there as a US resident but its primitive and you can't even log on to see the balance

Channel island /isle of man have really poor protections

Yes keep the real bank account at all costs - really !

[Martin&Nat 0]

Officially, you are supposed to notify the SLC within three months of leaving the UK by filling in the Overseas Income Assessment form - otherwise they are able to charge you the overseas repayment rate of £246 per month (from the date you departed!) in addition to a penalty of up to £150.

They happened to lose the form I sent them so I resent it around 18 months after leaving the UK - I was under the threshold since my departure so they didn't charge me any penalty. They simply confirmed I wasn't liable for any payments and that they would send me another assessment form in a year's time.

I hope this helps. Bottom line, file the assessment form with them to be safe - regardless of whether you are under the threshold or not. For the USA, the threshold is currently £12,000. More info at: http://www.slc.co.uk/thresholds/index.html

I hope this helps.

[Captain Oates 911]

Officially, you are supposed to notify the SLC within three months of leaving the UK by filling in the Overseas Income Assessment form - otherwise they are able to charge you the overseas repayment rate of £246 per month (from the date you departed!) in addition to a penalty of up to £150.

They happened to lose the form I sent them so I resent it around 18 months after leaving the UK - I was under the threshold since my departure so they didn't charge me any penalty. They simply confirmed I wasn't liable for any payments and that they would send me another assessment form in a year's time.

I hope this helps. Bottom line, file the assessment form with them to be safe - regardless of whether you are under the threshold or not. For the USA, the threshold is currently £12,000. More info at: http://www.slc.co.uk/thresholds/index.html

I hope this helps.

Wow you scared me then for a mo as I thought it referred to my UK banks accounts - it's just student loans...

I was the lucky generation - in the 1970's I was earning £60 per week and I got a grant to go to college full time which was £75 per week as I had a wife and two kids. I got a rise and went down from 40 hours per week to 18. I took the entire summer off and lived in the west of Scotland in a caravan and enjoyed my sea canoe and fishing. The site rent was paid by the govt and I worked back at my company through minor holidays (tax free)

I feel sorry of the youngsters now. I had it all provided by this 'socialist' state (Dirty word in America)

I went from the son of a co-op coal man who was earning £8 per week to European Finance Director for a major US Company and all because I was born in a socialist country and got massive state support.

In Europe I am a success story - in America I am seen as a commie leach on society and a freeloader.

By 1990 I was paying £24,000 per annum just in income tax, so the Brits got their investment back many , many times over..

[Gemmie 142]

Officially, you are supposed to notify the SLC within three months of leaving the UK by filling in the Overseas Income Assessment form - otherwise they are able to charge you the overseas repayment rate of £246 per month (from the date you departed!) in addition to a penalty of up to £150.

They happened to lose the form I sent them so I resent it around 18 months after leaving the UK - I was under the threshold since my departure so they didn't charge me any penalty. They simply confirmed I wasn't liable for any payments and that they would send me another assessment form in a year's time.

I hope this helps. Bottom line, file the assessment form with them to be safe - regardless of whether you are under the threshold or not. For the USA, the threshold is currently £12,000. More info at: http://www.slc.co.uk/thresholds/index.html

I hope this helps.

But the form is assessing your job and income, so when I looked at it, I just thought 'this is for people that are working overseas, so I'll contact them the moment I have a job". Am I to assume that they're going to charge me LOADS of money for not letting them know that I was moving?

Also.. my dad called me and told me that a letter came for me, asking why I hadn't been paying NI since leaving university. He then said they told him I owed them something like 250 pounds!

I'm very worried now..

[Gemmie 142]

Nevermind. Turns out he was just being old and getting words mixed up, etc.

I've put together a packet of evidence (entry stamp, K1, GC approval along with some of my husband's pay stubs) and I'm going to send it all along with a cover letter and the Overseas Income Assessment form. Hopefully they won't be charging any penalties.

[Martin&Nat 0]

But the form is assessing your job and income, so when I looked at it, I just thought 'this is for people that are working overseas, so I'll contact them the moment I have a job". Am I to assume that they're going to charge me LOADS of money for not letting them know that I was moving?

Also.. my dad called me and told me that a letter came for me, asking why I hadn't been paying NI since leaving university. He then said they told him I owed them something like 250 pounds!

I'm very worried now..

I think it's very unlikely they'll charge you any penalties as long as you prove you were under the threshold. How long have you been in the US for? Have you filed a tax return here yet? If so, you can just send that as evidence of your income (or lack thereof).

[doghandler 2]

Officially, you are supposed to notify the SLC within three months of leaving the UK by filling in the Overseas Income Assessment form - otherwise they are able to charge you the overseas repayment rate of £246 per month (from the date you departed!) in addition to a penalty of up to £150.

They happened to lose the form I sent them so I resent it around 18 months after leaving the UK - I was under the threshold since my departure so they didn't charge me any penalty. They simply confirmed I wasn't liable for any payments and that they would send me another assessment form in a year's time.

I hope this helps. Bottom line, file the assessment form with them to be safe - regardless of whether you are under the threshold or not. For the USA, the threshold is currently £12,000. More info at: http://www.slc.co.uk/thresholds/index.html

I hope this helps.

But the form is assessing your job and income, so when I looked at it, I just thought 'this is for people that are working overseas, so I'll contact them the moment I have a job". Am I to assume that they're going to charge me LOADS of money for not letting them know that I was moving?

Also.. my dad called me and told me that a letter came for me, asking why I hadn't been paying NI since leaving university. He then said they told him I owed them something like 250 pounds!

I'm very worried now..

Regarding the letter about National Insurance, you don't have to worry about it. Your National Insurance contributions are purely for entitlement to state benefits e.g Job Seekers Allowance/Employment Support Allowance (for sickness) and your State Pension. The letter is telling you what you need to pay to ensure you have a full contribution record for entitlement to Job Seekers Allowance/ESA and a full State Pension. You don't have to pay it, obviously you won't be worried about your entitlement to JSA/ESA as a USC and when you come to be eligible for the contributions based UK State Pension, you wouldn't have any entitlement. But I'm sure that's the last thing you could care less about.