A red letter

[Gemmie 142]

So before I left the UK, I kept my student bank account open with Halifax because I still had a 620 GBP overdraft that needed paying off. Because it was a student account, it was interest-free for a year after graduation, and once that time was up, I got a letter telling me that an interest of 11 GBP per month would be added. Fair enough. So we attempted to send money over through Swift transfer to just pay the whole thing off. Well two weeks later, it still hadn't gone through and when we asked Swift, they said it had left them, but for some reason hadn't made it through to Halifax. So we cancelled the transfer and figured we would try again later.

Well this week I got a red letter from Wescot, debt collecting agency, claiming that I owe 620 GBP, and that I need to pay this to them immediately or further action would be taken. I looked online and found my bank account was closed and said 'Enquiry Only'.

I plan on calling Halifax later this afternoon, but was wondering if anything like this had happened to anyone else? I thought bank accounts and overdrafts were ongoing?? I've never had any problems with my account until now. Wescot stated they report to credit companies so I'm worried this will affect my credit score in the UK.

FYI, I had set my limit at 800 and as I said I had only used 620 of it.

[New Beginnings 32]

Bank accounts can be closed after a certain amount of time being overdrawn. This could and probably will affect your credit score since it was reported to a debt collector. Get the info for the collector and transfer them the money.

[Gemmie 142]

But aren't they supposed to contact me first informing me that they're closing my account and need the balance paid? Also, I don't understand why they told me they would be adding monthly interest and then pull this barely 2 months later. Could it have something to do with the failed Swift transfer?

[elmcitymaven 9,712]

UK account? No effect on your US credit rating. It's a topic that's been discussed here frequently over the years -- if you search the forum, you'll find stuff. Also, bear in mind that unless a lot of jiggery-pokery occurs with moving jurisdictional enforcement of your debt (which is not going to happen with a debt as small as yours), the UK debt is not enforceable over here.

As to the other stuff, let me think about it more. It sounds ridiculous that you would get collection letters when you still had 180 quid left on your overdraft (I think New Beginnings doesn't understand that in the UK, authorised overdraft limits are the norm). Methinks there was a missing communication somewhere.

[Gemmie 142]

I just rang Halifax and they said it's nothing to do with them anymore, they passed my information onto the debt collectors as the overdraft had been there for a year.

Wouldn't want to let me know or anything.

Edited August 18, 2010 by Gemmie

[nickm 1]

I am from halifax, and whilst i cant say much about your issue, i know alot of the people who work in the halifax bank and they are mostly a bunch of monkeys. Jobsworth chickens, a little like the USCIS call centre. All they can do is read from a computer..

There is nothing they can do, so whilst it may be good to pay it back, i dont think you should panic too much...

whats the worst that can happen? a CCJ? unless you plan on going back to the UK they mean nothing..

The agency's are also a bunch of monkeys.. I tried to explain to this one that i was unemployed and had just moved to America so i wasn't currently in a position to pay and he blatently called me a liar and wouldnt listen to a word i said, so i told him they could come and get the money from me and i wasnt going to pay..

[elmcitymaven 9,712]

Ah, so there was literally no other transactional activity on your account for a year, with an overdraft on it? Yep, they closed it, but they should have alerted you to this. No correspondence on this matter from them? Huh. My knowledge of consumer banking law is limited, unfortunately, especially with the number of changes in the area since I left the UK in 2007. However, they should have provided you with warning that the account was due to be closed if you did not take action. The last thing you heard was the introduction of interest a few months ago?

*NB (and I have to say this): any advice I give you on this, Gemmie, is given in a personal context and cannot and should not be construed as professional advice; you cannot rely upon it in a court of law. Phew!

[Gemmie 142]

I *think* that was the last thing they wrote to me. I had no idea I had to make transactions within the year to keep it active. I'm so naive. The guy was really polite but couldn't tell me anything other than the issue is no longer with them, but Wescot. So I guess I'll just pay them and hope it doesn't affect me too badly if/when I move back to the UK. I didn't really HAVE a credit score before (no credit cards or loans other than student loan) so this can only be bad.

Thanks!

[h1a1 5]

The agency's are also a bunch of monkeys.. I tried to explain to this one that i was unemployed and had just moved to America so i wasn't currently in a position to pay and he blatently called me a liar and wouldnt listen to a word i said, so i told him they could come and get the money from me and i wasnt going to pay..

I have a couple of debts. Tried contacting them doing the "responsible" thing saying I had left the country and would pay as soon as I could. They didn't believe me and got nasty. So... I'm not planning on busting a gut to pay them back at all now. I very much doubt I'll ever live in Britain again.

[Ricky+Vanessa 43]

I have a couple of debts. Tried contacting them doing the "responsible" thing saying I had left the country and would pay as soon as I could. They didn't believe me and got nasty. So... I'm not planning on busting a gut to pay them back at all now. I very much doubt I'll ever live in Britain again.

Is this what I have to look forward to? I am about to try to resolve one but obviously as nickm said it may take some time what with having no job . Why would you both to call them if you had no intention to pay? Wouldn't you just skip out? I'll try anyway.......

[h1a1 5]

I'll contact them again once I have a job and I'll offer to pay back. I can be really paranoid and don't wanna look like a fraudster.

[KaiserD 12]

I *think* that was the last thing they wrote to me. I had no idea I had to make transactions within the year to keep it active. I'm so naive. The guy was really polite but couldn't tell me anything other than the issue is no longer with them, but Wescot. So I guess I'll just pay them and hope it doesn't affect me too badly if/when I move back to the UK. I didn't really HAVE a credit score before (no credit cards or loans other than student loan) so this can only be bad.

Thanks!

I'm a bit confused, what happened to the money that got transfered then? Surely it didn't just disappear? I must have missed something?

I ordered a credit report from Experian before, who claimed that there was no "score" , just a list of information about opened and running accounts and such. It's frustrating though, you were making an effort to sort it out and got penalized for it, doesn't seem fair

[Gemmie 142]

I'm a bit confused, what happened to the money that got transfered then? Surely it didn't just disappear? I must have missed something?

I ordered a credit report from Experian before, who claimed that there was no "score" , just a list of information about opened and running accounts and such. It's frustrating though, you were making an effort to sort it out and got penalized for it, doesn't seem fair

We cancelled the transfer and it was sent back to us.

Apparently it's just because I had an active account with an overdraft but hadn't used it for a year. I didn't think that would be a problem, but I should've looked into it, I guess. I just would've hoped they would've contacted me with a clear statement that they're closing it and want the money ASAP.

On a side-note, I had also been waiting on my grandfather's inheritance money. They wanted me to send them my bank details including a route number which you can only get from your bank. I live in such a small town so they aren't experienced with foreign transfers. The woman told me they had never done it before and had to look everything up in the policies. They concluded that this 'route number' was too many digits than the estate company was asking for. So sent them a copy of their policies for foreign transfers stating that they must go through 3 different stages. Well today my brother called (after they 'couldn't get in contact with me') and told me that the estate company didn't understand any of it, and just needed this one account information along with the route number. Banging head against wall now.

So the UK are wanting account info with the route number, and the US are claiming there isn't a route number that fits their boxes. Neither are understanding the other.

Why does trans-atlantic finances have to be so difficult???

Edited August 20, 2010 by Gemmie

[KaiserD 12]

Oh ok, as long as it didn't disappear or anything lol

Yeah like other people said they should have at least notified you. HSBC was pretty good with keeping me up with my account and let me know when it had lapsed.

I would feel really nervous if nobody there had done transfers before!

I only made one transfer before to the Philippines to an artist, I think they used a SWIFT number. People on VJ send money all the time I'm sure? Maybe a new thread might get the info you need?

Definitely a lot of trouble.

Edited August 20, 2010 by KaiserD

[Gemmie 142]

Yeah it didn't give me a warm fuzzy feeling when the woman had no idea what she was doing. I'm going to go to the bank again, ask them for the route number that they DO have, and then call the estate people on Monday and just give that to them, see what they say. If it fails, I'll be making a new thread.