overdraft going to bank collectors?

[joko]

hi,
my bank have decided i cannot keep my overdraft at the level its on because i rarely use the account. (it was a student account but I am not a student any more, haven't been for years)
i cannot pay it all back in one go
i spoke to a woman at the bank and she said we need to work out a schedule of monthly payments, but given my circumstances, she said it would be best for my account to go into collections and they will organise a payment scheme.
she said this was the best option for me as they would stop any more interest and allow a lower monthly payment
the bank have a set amount and will still charge interest

does this sound right to you?

can't help thinking that this seems too easy and that there must be something she hasn't told me

many thanks for any help

[Sammy Snake]

It is correct but it will go onto your credit file as a default and therefore probably cause you problems getting credit in the future.

[PFA]

Hi Joko

On the summary of it...Sammy is right.

However you could ask your bank if they are willing to arrange a repayment plan with you. Albeit �5 a week this would keep them from sending the acc down to collections. Most banks if not all have an in-house collections team - failing this they will then send you to a third party collection agency.

Now with regards to the credit file entry - unfortunately it is down to the bank. Speak to them and exhaust the internal complaints proceedure first. This should be enough to get you a temporary arrangement to buy time.