Nationwide error No Liability Letter then admits error and reinstates debt

[bonafidexxx]

Hi !

Due to unforeseen circumstances and the loss of a partner I found the need to enter into a Debt Management Plan (DMP) 13 months ago that was accepted by all creditors (I am retired/State Retirement Pension/Pension Guarantee Credit). I have never defaulted but out of the blue received notice from Nationwide stating they had accepted my 12 monthly payments as partial payment as I no longer had any liability for the full debt (£1832). They wrote to my DMP organiser and stated same also that they would inform all credit reference agencies. Consequently, I split their monthly payment between all other 4 creditors. Now, again out of the blue they demanded I reinstate my DMP monthly payment to them and when I queried they admitted the original letter (Nov 2015) was an 'administration error' and I did still owe the debt.

When I raised a complaint they have now written to me offering £250 compensation but demanding reinstatement of my DMP monthly payment from Feb 2016. I have already redistributed the monthly amount originally apportioned to them. Can anyone please advise me as this has caused me great stress and although I am aware I could take the issue to The Financial Ombudsman feel concerned that he may find in their favour. Should I accept the compensation, is there a possibility that they may increase this offer if I write back and state it is not acceptable due to the stress and financial upheaval it will cause to ask my other creditors to revert back to their original monthly repayment which they may not agree to do?

Many thanks Grace.

[nemesis45]

Re: Nationwide error No Liability Letter then admits error and reinstates debt

Hi !

Due to unforeseen circumstances and the loss of a partner I found the need to enter into a Debt Management Plan (DMP) 13 months ago that was accepted by all creditors (I am retired/State Retirement Pension/Pension Guarantee Credit). I have never defaulted but out of the blue received notice from Nationwide stating they had accepted my 12 monthly payments as partial payment as I no longer had any liability for the full debt (£1832). They wrote to my DMP organiser and stated same also that they would inform all credit reference agencies. Consequently, I split their monthly payment between all other 4 creditors. Now, again out of the blue they demanded I reinstate my DMP monthly payment to them and when I queried they admitted the original letter (Nov 2015) was an 'administration error' and I did still owe the debt.

When I raised a complaint they have now written to me offering £250 compensation but demanding reinstatement of my DMP monthly payment from Feb 2016. I have already redistributed the monthly amount originally apportioned to them. Can anyone please advise me as this has caused me great stress and although I am aware I could take the issue to The Financial Ombudsman feel concerned that he may find in their favour. Should I accept the compensation, is there a possibility that they may increase this offer if I write back and state it is not acceptable due to the stress and financial upheaval it will cause to ask my other creditors to revert back to their original monthly repayment which they may not agree to do?

Many thanks Grace.

Hello Grace, welcome to LB.

The offer is fair in my opinion, but I agree the stress of being told you still had liability is great I suspect.

If you go to FOS is will cost them more the £250 so certainly try for more say £450 still a little cheaper
than FOS.

nem

[bonafidexxx]

Re: Nationwide error No Liability Letter then admits error and reinstates debt

Thank you, your opinion is very much appreciated. Would you suggest that I state, "failing a more satisfactory offer of compensation for the resulting consequential stress/upheaval/administration with other creditors,, it is my intention to pursue the matter with FOS", or not? Might this appear somewhat belligerent ? Thank you Grace.

[nemesis45]

Re: Nationwide error No Liability Letter then admits error and reinstates debt

Thank you, your opinion is very much appreciated. Would you suggest that I state, "failing a more satisfactory offer of compensation for the resulting consequential stress/upheaval/administration with other creditors,, it is my intention to pursue the matter with FOS", or not? Might this appear somewhat belligerent ? Thank you Grace.

Being " FIRM" is not a problem, press on.

nem

[bonafidexxx]

Re: Nationwide error No Liability Letter then admits error and reinstates debt

Many thanks, will do as you suggest and update. Grace

[nemesis45]

Re: Nationwide error No Liability Letter then admits error and reinstates debt

Many thanks, will do as you suggest and update. Grace

Thanks Grace.

nem

[bonafidexxx]

Re: Nationwide error No Liability Letter then admits error and reinstates debt

Nem: omitted to include the following on 14/1/16: I only became aware that Nationwide were intending to reinstate my debt when I received a Default Notice dated 23/12/15 requesting payment of the balance of the debt in full £1832 by 14/1/16. The Default Notice states possible legal action but also mentions that I may wish to reinstate my previous monthly instalment via my DMP.

Due to the confusion and the necessity to try and re-distribute my DMP once again (Nationwide's apportionment of monthly DMP payment now distributed to other 4 creditors) I have overlooked the threatening tone of the Default Notice if payment not made in full by the said date. In your opinion, do you think it may be in my interest to accept the £250 compensation already offered and reinstate my original monthly DMP payment since they may opt to sue if I reject their first offer? I am aware that creditors are not under obligation to continue to accept DMP and can sue at any given time even if all DMP payments have been paid without default. Many thanks Grace.

(Nationwide wrote to me to confirm 30/11/15 debt was closed due to their decision to accept 12 x monthly instalments as partial payment, removing my liability for the remainder of the debt, per first posting 14/01/16).

[nemesis45]

Re: Nationwide error No Liability Letter then admits error and reinstates debt

Nem: omitted to include the following on 14/1/16: I only became aware that Nationwide were intending to reinstate my debt when I received a Default Notice dated 23/12/15 requesting payment of the balance of the debt in full £1832 by 14/1/16. The Default Notice states possible legal action but also mentions that I may wish to reinstate my previous monthly instalment via my DMP.

Due to the confusion and the necessity to try and re-distribute my DMP once again (Nationwide's apportionment of monthly DMP payment now distributed to other 4 creditors) I have overlooked the threatening tone of the Default Notice if payment not made in full by the said date. In your opinion, do you think it may be in my interest to accept the £250 compensation already offered and reinstate my original monthly DMP payment since they may opt to sue if I reject their first offer? I am aware that creditors are not under obligation to continue to accept DMP and can sue at any given time even if all DMP payments have been paid without default. Many thanks Grace.

(Nationwide wrote to me to confirm 30/11/15 debt was closed due to their decision to accept 12 x monthly instalments as partial payment, removing my liability for the remainder of the debt, per first posting 14/01/16).

Hi,

I was under the impression that the account had already been defaulted??
Accounts can only be defaulted Once and unless the original default date was patently erroneous it cannot be changed and no new default notice is relevant.

nem

[bonafidexxx]

Re: Nationwide error No Liability Letter then admits error and reinstates debt

Thank you Nem: this was the first actual Default Notice I have received. Originally I set up a DMP before any arrears had been incurred at all on this bank loan and have continued to pay my DMP without default until I missed the Dec payment due to being erroneously advised the account had been closed by Nationwide and I had no further liability on this account. Do you consider that Nationwide may now possibly opt to bring a legal claim to county court if I refuse to accept their first offer of compensation, or, are these Default Notices routinely sent to cover the creditor's legal option to sue at any future point in time, at their discretion? Many thanks Grace.