Terri Said:

my bank account has been shut down by the bank can i still contest charges?

We Answered:

I don't know how the laws work in Britain, but your best bet is to talk to the bank and work out a payment plan. It can take a while to pay back these kinds of charges, but even paying them $20 a month might be enough to keep them off your back. If their choice is a little bit or nothing at all, they will usually chose a little bit. The collection agency 'bought' this debt for pennies on the dollar and wants as much back as they can get...but still make money if they don't get it all.

Now, your alternative would be to fight the charges. Talk to the collection agency and find out what you need to do to dispute the outstanding debt and charges. If you have records of your calls to the bank manager without a return call, you might be able to dispute the charges in the first place.

Also, you may have the option of fighting the debt in court. It will probably be more expensive then just paying it, but if you have a strong case that the bank didn't do their job and follow their contract you could win and they get nothing. Even if the contract says that you can't take them to court or they use an 'unbiased arbitrator' you usually still have the option of fighting the charges in court.

The best bet is just to talk to them and work out a payment plan. It can take a few years, but it's better to make good on your mistake then to leave something like this hanging over your head and destroying your credit for decades. Trust me, ten years from now if you are trying to get a house or loan something like this can really hurt.