Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By henrymurphy
#198876 Hi

Thisis my firts post but have benefitted from your advice over the last few years. I'm hoping you may be able to help me - but I'm afraid I know the answer...

I am in my 4th year of my IVA (due to finish April 2010 due to an agreed extension with Paypal)

In December 2006 my debit card was cloned and a large amount of money stolen from my account. Nationwide set up an overdraft facility because of this with no end date.

Foolishly I never informed paypal as although there were mitigating circumsatnces I was scared they might fail me as I have a lause about not obtaining credit facilities. I also have not been in a position to decrease the overdraft although the stolen money was repaid.

I have received a letter today giving me 3 weeks notice to repay the overdraft or charges, interest will be applied etc. I will try to neogiate with Nationwide tomorrow but wondered if anyone has any advise or similar expereince? I'm aware that Paypal could still fail me ad I should have been honest.

Any advice or views would be greatly appreciated
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By submariner
#198887 I assume you mean Payplan :wink:

Hmmm, thinking about this..... hopefully some real expert will come along.

You do seem to have a snag in trying to negotiate with Nationwide, because any "offer" made to them is unfair to your other creds who are included, with their reduced settlements, in your IVA. Payplan could very well go ballistic about that IMHO....

I just fail to see how Nationwide allowed this..... I can sort-of understand why Nationwide could have allowed a "one-off" OD to deal with the administration of the original fraud against you, but I really can't understand why they didn't just close that down with the payment of the stolen money (which I presume they had a part in recovering, or at least refunding?)

Surely they must know your history via your credit file - or maybe they've only just looked, after the money was paid back and that's why they are making the demand for repayment now...

I suppose if it were me I'd come clean to Payplan and hope to persuade them to help me.... but that's an undeniably risky business :(
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By deej
#198896 a relative in an iva got a new bamk account when she first started the iva. The a count had a £500 overdraft. When the bank found out she was in an iva it gave her a month before it cancelled her account. She then made an arrangement to pay back the overdraft over time. She did not tell her IP

How much is your overdraft?
I guess you could open a new account with another bank, this will stop nationwide using wages etc to settle the overdraft. Then try to come to an arrangement about paying back the overdraft. I know you have used the overdraft, which was of course wrong, but they should also take some responsibility.

good luck

dee x