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Hello,
Nearly a decade ago I went as a student to a bank to ask of I could open an account because I needed an overdraft. Stupidly, I was sold (technically mis-sold, I'm claiming this separately), a packaged bank account which cost £15 is a month. It provided an overdraft of a couple of hundred pounds, and some random benefits. I ended up never really using the account. Not paying anything in, not spending anything, so it was just costing me fees to have it. Becoming a bit savvy finally, I tried to cancel it in store a couple of years back, and thought I had.
Fast forward to now, and I am contacted by a debt collection agency because the bank has sold the 'debt' onto them.
Where I had ignorantly not checked, and also later moved house, they had been adding on the £15 a month fee until it filled the entire overdraft, and then kept adding it until it was unassigned/over the limit, and then defaulted the account.
Now I know that I should have checked it was cancelled, and I know they won't care that I never received any correspondence because I had moved. However I do think it slightly unethical to keep adding fees to go over the agreed overdraft and cause a default. Surely just stop at the limit?
I can deal with the having to pay, but its the default thats really effected me. I was finally in a place with great credit and a possible mortgage on the horizon. That chance has gone. Credit score ruined, and also mounting credit card interest as I can't do the usual swap to a 0% card.
Could anyone please advice if theres any terms I could quote, around the packed fees causing the debt and subseqant default being unfair? I'd even suck up paying the fees if they removed the default.
Thank you so much in advance.
Nearly a decade ago I went as a student to a bank to ask of I could open an account because I needed an overdraft. Stupidly, I was sold (technically mis-sold, I'm claiming this separately), a packaged bank account which cost £15 is a month. It provided an overdraft of a couple of hundred pounds, and some random benefits. I ended up never really using the account. Not paying anything in, not spending anything, so it was just costing me fees to have it. Becoming a bit savvy finally, I tried to cancel it in store a couple of years back, and thought I had.
Fast forward to now, and I am contacted by a debt collection agency because the bank has sold the 'debt' onto them.
Where I had ignorantly not checked, and also later moved house, they had been adding on the £15 a month fee until it filled the entire overdraft, and then kept adding it until it was unassigned/over the limit, and then defaulted the account.
Now I know that I should have checked it was cancelled, and I know they won't care that I never received any correspondence because I had moved. However I do think it slightly unethical to keep adding fees to go over the agreed overdraft and cause a default. Surely just stop at the limit?
I can deal with the having to pay, but its the default thats really effected me. I was finally in a place with great credit and a possible mortgage on the horizon. That chance has gone. Credit score ruined, and also mounting credit card interest as I can't do the usual swap to a 0% card.
Could anyone please advice if theres any terms I could quote, around the packed fees causing the debt and subseqant default being unfair? I'd even suck up paying the fees if they removed the default.
Thank you so much in advance.
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