Theyve taken all my money - HELP!

[Scaggy]

Hi all,

I have an offset mortgage account. I rented out the property 6 months ago. I informed the bank and over the phone they said this was okay.

I fell into arrears. When speaking to the lender 6 months later on the phone about getting help, they flagged to that I have not had authorisation to rent.

28th Feb I received a letter capping my overdraft and chopping £3000 off leaving me with no money apart from £4 change in my purse. I was left stranded in town and I cant feed the kids or pay rent or anything.

All helplines are closed. I have nothing?

Can anyone let me know what options I have. Any advice or help?

The annoying thing was hwne I called the bank they offered no help and then said "Have a nice day.

Been struggling to pay them and I just found £700 to pay towards my arrears before they capped it.

AAAAAArrrgggg. Panic

[PlanB]

Re: Theyve taken all my money - HELP!

I don't know much about your circumstances but I have read your other thread so I know you're in work. But you don't have to be on benefits to get a Crisis Loan from the DWP. Ring the Help Line on 0800 032 7952 when they open at 8 am tomorrow and see if you can get one. Be persistent and make it clear that you don't have money to feed your kids

Are you getting all the top-up benefits you could be entitled to such as Working Tax Credit and possibly Housing Benefit towards your rent? This can still be paid even if you've got rent coming in from another property which you let out as long as you declare the amount and if you have no capital (you say the property is in negative equity so that gets over that hurdle). You don't have to be on benefits to claim Housing Benefit If you contact your local authority HB team in the morning they will send out the form or you can fill it in online. Then maybe take a deep breath and call your Landlord or agent and tell them there has been a temporary blip with your finances which will be sorted within a week and that should help keep everyone calm. If it isn't a problem for you then simply say that there has been a delay processing your HB application. Please let us know what happens because we're here for you

[Scaggy]

Re: Theyve taken all my money - HELP!

Thank you so much. I cant explain how stressful it has been today. I will call them tomorrow and keep you posted.

The site has been very helpful and thank you so much again.

Oh, can you have your house repossessed if you have put it up for sale?

Thanks plan B

[PlanB]

Re: Theyve taken all my money - HELP!

That depends on lots of things and keeping the lender in the picture always helps. Who is the mortgage company and how many months' payments are you in arrears? I presume this is the one you've rented out. Is it ok to ask why you're not living in it because lenders are more forgiving if it involves the possibility of making a family homeless if any repossession went ahead? And is the mortgage in your sole name or is there an ex out there somewhere? When you've had time to sort the urgent family stuff in the morning post up a bit more background after the school run. Tonight you should try not to panic because nothing bad can happen when all businesses are closed for the night

[Scaggy]

Re: Theyve taken all my money - HELP!

Hi plan B. Well the past 24 hours have been the most up and down I have ever experienced. Heres an update of my situation:

I relocated with my job and rented out my house so I am not living in it.

I was told verbally by Barclays (with whom the mortgage is with, well Woolwich) that it was okay to rent, but not in writing.

I have 4 months arrears. Not one after the other.

Joint mortgage with husband.

Today spoke to Woolwich and had no help. They told me they reduced my open plan facility from 22350 to 20500 as we are in arrears and the mortgage is above the original agreement which it is and has been for tha last 2 years.

They suggest I open another bank account which we have done - HSBC. I am transferring everything to HSBC.

House goes on market tomorrow.

They have said if I can do 2 payments consistently then they will believe we are committed and we can submit a budget and agree reduced payment plan whilst we sell.

They did say that if no attempt to pay arrears in next payment then account will be frozen.

I have organised wages and everything to go through other account.

We can function without them.

I am going to offer them my mortgage payment plus something on top for arrears. I will offer by letter too.

Do you think I am doing the right thing. I have really tried all along to pay them as much as I can, kept in contact and asked them for help. My arrears are going down too.

Lets say they say they will help, but actually just want to ruin your life!!!!

[PlanB]

Re: Theyve taken all my money - HELP!

They suggest I open another bank account which we have done - HSBC. I am transferring everything to HSBC.

They have said if I can do 2 payments consistently then they will believe we are committed and we can submit a budget and agree reduced payment plan whilst we sell.

I have organised wages and everything to go through other account. We can function without them.

I am going to offer them my mortgage payment plus something on top for arrears. I will offer by letter too.

It's nice to see you're feeling more in control of your life today You had me all worried last night that you and the kids would be living on bowls of spaghetti without the bolognese for the rest of your lives

From what you say the Woolwich have put their foot down on how much over the agreed limit they will let you go on the offset mortgage but they're not actually threatening repossession of your old home at this stage even though you've had a two year iffy payment record. So I think it was a shrewd move of yours to tell Barclays you're selling up even if you change your mind next week when things have settled down a bit more. It should keep them off your back.

Despite what you think it does sound to me as if Barclays were being genuinely helpful when they suggested you opened another seperate bank account so your wages don't get swallowed up by them each month. They also sounded open-minded about a willingness to wait for you to make two consecutive mortgage payments before they would do anything negative towards you. If the rent from your tenants in your old home covers your mortgage then you may not need to sell.

You've sucessfully navigated your way through this storm in 24 hours. You sound like one heck of a lady to me

[Scaggy]

Re: Theyve taken all my money - HELP!

Hi Plan b,

After being sick with worry, no sleep and my husband and I have thumping headaches we have done the following:

I can understand the reduction in my overdraft. But apparently you need 1 weeks notice so you can prepare for the reduction. I was left in town until early hours with no money and my daughter, husband away. I have been researching lender liability.

The truth is I am fuming! the position they left me in. We havent been iffy for 2 years, just for 6 months. the account has been perfect for the past 10 years and my arrears have been going down.

Anyway, with a little tenacity from my wonderful husband, we have managed to get some money to tie us over until the end of the month when my new account will be open. IVA going thru too.

Its all going on! thanks plan B!

[PlanB]

Re: Theyve taken all my money - HELP!

They told me they reduced my open plan facility from 22350 to 20500 as we are in arrears and the mortgage is above the original agreement which it is and has been for tha last 2 years.

Sorry for any misunderstanding but I thought you meant that you had been experiencing payment difficulties with the account for the last two years which indicated some forbearance by the Woolwich I completely agree with you that it was deplorable of the bank to cut you off without any warning and clearly gave you a terrible fright. Shame on them for that

[mgfboy]

Re: Theyve taken all my money - HELP!

So the facility you are taking about, is it the drawdown one set at the beginning or one created from past over payments???

[Scaggy]

Re: Theyve taken all my money - HELP!

My mortgage is an open plan, draw down. Limit set when taken out. We have been a little over the limit for 2 years.

Now they have taken the money and not given me notice all my direct debits have bounced back with a charge of £40. And they expect me to pay the mortgage this month but they took my wages. Ombudsmen have said for me to complain.

I am a little worried because i cant pay the mortgage this month now theyve done that

I must say I went to work today and the stress of it all is getting a little too much. I think it was because I had no sleep and when I wake up it feels like ive been wearing a lead hat all night!

[CleverClogs (RIP)]

Re: Theyve taken all my money - HELP!

when I wake up it feels like ive been wearing a lead hat all night!

Could that have been due to a leak somewhere of heavy electricity? link

[Undercover Elsa]

Re: Theyve taken all my money - HELP!

Hi Scaggy,
Very well done so far in dealing with this!

For FOS to become involved first you need to invoke the Woolwiches Formal Complaints procedure.
I would write by recorded delivery to Customer Relations, head it FORMAL COMPLAINT and tell them that you were left without money for food and priority bills when they reduced your overdraft without the contractual 7 days notice.
Point out that this resulted in charges for failed direct debits and that directly because of this you have been rendered unable to pay your mortgage this month.
Reiterate that you have been doing everything possible to bring this account back into credit but that their actions in not abiding by their own terms have caused great hardship and you have received no help whatsoever in attempting to resolve this.
Tell them that you have already sought advice from the FOS, and request that the overdraft be reinstated, the charges removed and the direct debits honoured, otherwise you will have no alternative but to escalate the complaint to the ombusdman.
Give them 14 days from receipt to respond and ask for a copy of their complaints procedure.




Shep x

[PlanB]

Re: Theyve taken all my money - HELP!

My mortgage is an open plan, draw down. Limit set when taken out. We have been a little over the limit for 2 years.

I agree with Shep but also check your mortgage terms and conditions carefully to see if either you or the Woolwich have breached these when the limit was exceeded which you say has been the case for the last two years. It should state exactly what the creditor can and can't do to penalise you for this breach which may differ from a regular overdraft situation since it is in effect a mortgage.

Also check the Ts & Cs for reference to renting out the property. Most lenders state that this musn't be done without written permission from the lender. You say you've previously made them aware of the tenants and maybe this will show up as a reference in the telephone account log if you ever need to do a SAR (which is not now!). Some lenders evoke their right to change the status of your mortgage from "residential" to "Buy-to-Let" once a property has been let. Buy-to-Let mortgages are not regulated by the FSA and the FOS won't deal with complaints against lenders in these circumstances. But unless they've written to you and put you on notice of this then I agree you should make a formal complaint a.s.a.p.

And if you're worried that the lender may attempt to repossess you (as you said in earlier post) take comfort in the fact that it's common practice for any such draconian measures to be put on hold while the FOS investigates, which we all know can take upwards of a year

[PlanB]

Re: Theyve taken all my money - HELP!

we have managed to get some money to tie us over until the end of the month when my new account will be open. IVA going thru too. Its all going on! thanks plan B!

I've just spotted that you're in the process of setting up an IVA. Make sure the provider explains the impact of owning property while in an IVA and whether the creditors can ask for it to be re-valued in Year 4 even if it was in negative equity at the *creditors meeting* stage at the outset. This could help you make the decision whether or not you should be selling your house now since you said you plan to put it on the market this week. There are pros and cons to this which you can work to your benefit

[Scaggy]

Re: Theyve taken all my money - HELP!

Hi everyone.

Working long hours friday and Saturday so havent posted.

Thank you all so much. the information you have given me is fabulous

And Im just getting used to using the smiley faces!

A little background on our mortgage-

When we bought the property 11 years ago my parents put a % of cash in as a deposit. We need to sell it as they need their money. The equity is theirs. I spoke to Payplan about this and explained about the house going on the market. She said thats not a problem and due to this fact they cant approach the equity. I also offered contract info should they need it.

Payplan said an IVA would suit best as I do have a good wage and steady job long term with my company. And I really know how much that means now!!

In my IVA pack it says the equity can be approached, even if the property is jointly owned, should the person have been bankrupt for 12 months. But I would have to be bankrupt first.

So at the moment I am in the process of:

1-Writing letter to the Woolwich
2-Setting up new bank account with HSBC (not linked to any of my creditors)
3-Starting IVA

Onwards and upwards and like Plan B says, soon I will be able to afford to put Bolognaise on my spaghetti for the kids!!!!!!!!!!

I have 10 quid and I am proud of it!!!!