What if I dont repay my personal loan and overdrafts to bank?

Question

I have £1800 overdraft limits of which I have used £600 so far..still got around £1200 available. on the top of it I took a personal loan of £5000 pounds,of which I have already pay off around £500. now I owe a total of £5100 pounds to bank. at this point my Bank blocked my account. I asked the branch why it happened.
they simply told me that they considered me as a risk for their business and the decision of my account being blocked was made by the higher management. so they have nothing to do.
after 2/3 days I got a letter describing all that my account is blocked and will be closed in two months and in the meantime I should pay back any amount I owe to the Bank. there is also an option for me to pay back the amounts in installments if it is large.

now look at my points.
1) they put me in trouble as I knew that I had money(1200) available in my account but actually I dont have access to my money now, they didn't give me any notice before they block my account. so, I got it too hard to meet my house rent and all expenses nowadays.
2) the contract was that I will be paying installments against personal loan upto 42 months and to date It was being paid regularly. at this point, its not me, its bank who has broken the contract blocking and closing my account without a reasonable cause.
so, now my decision is, as the Bank made me in trouble all a sudden and broken the contract and put me in a situation that I was not ready for, I dont want to pay the loan and overdraft back.
now my question is, what is the worst the Bank can do with me if I simply refuse to pay back the loan? will they send people to my house, garnish my other Bank ?
thanks in advance for your answer and sorry for my weak English.

Answer 1

No credit for years, and years. And employers will see this mess, since they check. You can get sued for this. They can take the money out of your accounts (at any bank) even years down the road.

Answer 2

Banks are a lot of things but they are not stupid!

You showed yourself to be a bad bet as far as they were concerned and rightly too is seems as you say not having access to the remainder of the overdraft amount means you are unable to pay rent and bills. An overdraft is for emergencies not for day to day living. Banks get very concerned if someone is using up the overdraft and not in credit with their own money some of the time.

I'd guess the bank saw you were paying your loan back via the overdraft and decided to call a halt before things got worse.

If you do not clear your debt with the bank it will stick to your name for years to come. You will not get credit anywhere not even for a mobile phone never mind a place to rent or a car. Any other accounts you have can be frozen by the bank you have basically defrauded (that is how they see taking a loan and overdraft but not repaying it as and when they request it).

You say they did this with no warning but if you bothered to read the small print when you were setting yourself up with all this credit you would have noticed they cover themselves very well by stipulating that they can call in loans and overdrafts at any point with no notice.

Answer 3

1

Answer 4

What a mess

They could start court proceddings or put a debt collector onto you

Be prepared to have huge problems ever opening another bank account

Be prepared to never be able to enter into a contract, even one for a mobile phone

You've stuffed your credit rating good and proper

So get on top of the debt before your financial problems get even more out of hand

Answer 5

you need to contact the bank regulator commision for this issue first if what you state is true the bank can stop issueing you credit (freeze-the credit lines) but they cannot close other accounts or add fees not agreed to. I have the feeling though all they did was decide not to ectend further credit (freeze you were you are) and that is not only normal in rough times but legal and prudent

Answer 6

Hi you might have a 1800 pounds overdraft limit but it is not your money but there money. so you have nothing. so it is your income they are looking at. what income you have has to cover the debt.

if you have no income or your finances are such that you pay nothing off then technically you are bankrupt.

so they have closed access to borrowing any more money so you would be breaking the by trying to draw on money which is not yours.

Answer 7

I might endorse a consolidation of your debt in the first place. Abu dhabi Islamic financial institution had this option. I still financial institution with them and will help you know about it. The opposite benefit of their "revenue price" is that it's only 6.25% with no processing fee nor any preclosure costs. I will send you a extra targeted mail for your id.