nia28

Hi,

So this is my story... 2 years ago, I lived in France. When leaving, it seemed very difficult to close the bank account, lots of hoops to jump through. I couldn't close my bank account until I had proof that I had cancelled my direct debits. Because of this, I couldn't close the bank account until the day I left as I was renting a house, and they would only give me the paperwork when I left, which obviously had to be the day I was leaving the place as it was a small village. As sods law has it, I did everything that was asked, and after a very stressful morning, I walked into the bank with all the necessary paperwork, and they told me they couldn't do anything as they'd had a power cut. So I left them all the paperwork and they said they'd process it when the power comes back on. Fast forward 2 years, and I got an email from my aunt, who lives in that village, asking if I want to close my bank account and to send a letter if I wish to do so. I did this. She came back to me saying the bank account is 813 euros in the red...I left it with about 100 euros in it, but they've been charging me for having the bank account apparently when I wasn't aware. I'm in an absolute state of panic as I don't have the money, and they say the charges will keep going up. Is there any way to negotiate with them? To haggle per say to make it more affordable? Please, please help.

Thanks everyone for any advice, although I'm pretty sure it's not going to be good!

cardi

They will not be able to enforce a debt like that in UK. It would cost many times more than it is worth and could take years.
Don't give them your UK address as they will just bother you.
Write to them with full explanation. They should cancel the debt and give you your money that was there.
They probably won't give you the balance but you could use the banking mediator if you want to bother..
Otherwise just ignore it. Unless you go back to France, give them your new address and contact them they'll never know or care.

Chatter Static

Welcome to the Forum..

Cross border European debt recovery is a lot easier these days and if considered guilty it's the debtor that picks up the tab for the charges. 900 euros in France could become a few grand in the UK when the bailiffs come a knocking.

Probably better to seek advice at a more issue specific venue like the Consumer Action Group they have some really clued up members on debt etc.

InVinoVeritas

I have to agree with Cardi. When this debt gets referred to international lawyers it will go in the bin. As we all know cooperation between UK and France is not very high - lack of cross-border of traffic offence enforcement is just one example. Ignore their demands and don't give up any contact details. Sleep easy!

cjm

Cardi's advice is sound. Write and explain all. By responding to the 'debt' directly to the bank you are showing that you are not ignoring the matter. Doing nothing could, but only could, create further issues for you. Pity you didn't request a receipt when you left the paperwork.

Bolting the door .... I found out it was best to copy/scan all paperwork before handing over to any bank or government body.

Im_and_Er

Cardi is spot on, they will not pursue you for €800 odd especially which it's apparently is made up of their own charges anyway.

Too late for you but to cancel a DD you simply tell your bank to do it and possibly sign a form, that's what I do with my bank.

Sometimes they claim that only the recipient can cancel a DD but that is completely wrong and applies to standing orders not DD's.

pog06

I am new to the site and have a question also about French debt while living in the UK. My husband and I bought a property in France in October 07 with a cash deposit and with a loan (pret) from the French bank. The repayments include an amount each month for insurance so if either of us die the loan is repaid. However the property was sold in October 2010 and we returned to UK after receiving our cheque from the notaire which was for the full amount of the sale. We have continued with the loan payments but it is becoming a struggle since retirement and ill health. Does any one know what would happen if we stopped paying the loan (balance about 18000pounds). Could the bank pursue us here or would the insurance cover the cost. Thank you for any replies.

EuroTrash

If the insurance is to repay the loan if one of you dies, I think it would require a death certificate.

Unfortunately it sounds as if the bank would have no trouble tracing you, since you've kept in contact with them and they can trace where the payments have been coming from. For over 20 000€ yes I think they probably would decide it's worth pursuing you. Does it seem likely to you that a bank would write off an £18,000 debt without making efforts to recover it?

But you can always try it and see what happens.

cyrian

If the insurance was to repay the loan on the first death, then it would only apply on the first death.
Your case is different from the OP where the bulk of the debt was ongoing bank charges.
If you do not repay the £18,000 loan then it is almost certain that the lender will pursue you in the UK.
I assume that you used the sale proceeds to purchase a property in the UK.
If so, you could consider an equity release mortgage on your UK property to pay off the debt.
You would have to check the terms of the French loan as to what happens if you pay the loan off early and if there are any fees.
Do the French bank have your UK address?
A debt of £18k is well worth pursuing anywhere in the EU.
I see that ET has offered similar advice.
Good luck

dmu

We took out such an insurance when we bought an appartment as an investment. It's intended to avoid hardship for the survivor in the event of one of the borrowers dying before the debt is paid in full. If both of you are still alive, then it doesn't come into play.
You must either continue to pay the regular payments as set out in your Contract, or find out whether you can pay off the debt in full in a lump sum (= borrow in the UK, as suggested).
Good luck!

pog06

Thank you for all the good advice, hopefully we can sort something out. Best wishes to all with similar problems.

Novocastrian

I'm puzzled. I've never sold a house in France (probably never will) but I have in both Canada and Germany. In all instances the equivalent of the notaire would pay off all liens (i.e. mortgages, secured lines of credit etc.) before transferring the balance (if any, is that the problem here?) to the vendor's account.

Could one of you experts explain why the poster got a cheque for the full amount of the sale in the first place?

mikelincs

What you say about the notaire certainly applies in Spain, where, on completion at the notary's office there are 2 other officials there, one from the buyers bank, one from the sellers bank they have the mortgage with. The buyers bank official has 2 cheques, one is given to the sellers bank to pay off the mortgage, the other to the sellers.

InVinoVeritas

It could only be because the bank didn't have a mortgage registered on the property which would be strange in itself.

dmu

This has been puzzling me, too, as the Notaire always checks on Hypothèques on a property being sold. But even if the full cheque did arrive, the logical thing would have been to pay off the loan straight away...