A Guide To Managing Your Debt With Yorkshire Bank – What To Do If You’re In Arrears
Yorkshire Bank is a trading style of Clydesdale Bank, and goes back to 1859 when it began in Halifax, West Yorkshire. Yorkshire Bank provides a range of financial products and services to individuals and businesses.
Yorkshire Bank is authorised and regulated by the Financial Conduct Authority.
What Will Happen If You Miss Payments To Yorkshire Bank?
If you miss payments and don’t contact Yorkshire Bank first, they may get in touch with you to find out what is going on. You’ll be sent a letter about any arrears you have and various information leaflets will be enclosed.
Yorkshire Bank will send you the Arrears and Default information sheets and the Financial Difficulties insert. Your arrears could be in relation to lending such as a personal loan, car loan, or credit card.
What If I Can’t Afford To Pay?
The first thing to do, when you realise you are not in a position to pay what you owe, is let your creditor know. Opening up lines of communication with Yorkshire Bank is the first step towards reaching a payment agreement. Don’t ignore their letters or calls.
Banks And ‘Setting-Off’
Do you have other accounts with Yorkshire Bank? If you have money in other accounts with them, for example current accounts or savings, the bank may be able to use it to ‘set-off’ your debt.
The bank can do this without giving you notice and can take the money you owe, leaving you unable to pay other bills, but they shouldn’t do this if you’re attempting to repay what you owe.
Yorkshire Bank should not leave you without enough to cover day-to-day living costs and priority debts, and must take care if your main source of income is state benefits. If Yorkshire Bank take money from you, placing you in financial difficulty, you could ask for a refund.
I’m Embarrassed To Talk To Yorkshire Bank About My Debt
Don’t be! Debt is a common part of modern life and you are definitely not alone. Anyone can fall on hard times or suffer a change of circumstances, meaning they are no longer able to keep up with payments.
Yorkshire Bank must treat all their customers fairly – you should be listened to and given an opportunity to explain your financial situation.
You might be able to agree a payment plan with Yorkshire Bank, whereby you agree to make regular affordable repayments towards your debt, instead of settling the debt immediately with a lump sum.
You must make sure your offer for repayment is realistic and sustainable – you could land yourself in further financial difficulty if you make an arrangement you can’t fulfil.
Making A Budget
If you are struggling to meet your monthly payment obligations, a budget can be an invaluable tool in helping you see what you’re spending. A budget is a simple calculation of all the money you have coming in, compared to what you’re paying out.
You can use a budget to show what you can afford to repay towards your debt when making a proposal for a payment arrangement. You can also use a budget as a plan for managing your finances – sticking to a budget gives you back control of your money and helps prevent you from overspending.
If you continually fail to make payments, Yorkshire Bank may eventually decide to register a default on your account. This usually happens when a lender has tried to come to a payment arrangement with you, but this has proved unsuccessful. The length of time before a default is declared varies from lender to lender, but may be after as few as two missed payments.
A default means Yorkshire Bank have ended any previous arrangement and have decided you are unlikely to repay. When this happens, you will be sent a default notice.
How Will It Affect My Credit Rating?
A default will be noted on your credit report and will remain there for six years, even if you go on to settle the debt. Defaults have a negative impact on your credit score and can be viewed by potential lenders when you make applications for credit. Having a default on your credit record may affect your ability to get credit or give you less favourable borrowing rates.
Can I Improve My Credit Score?
Yes. Your credit score is not set in stone – it is possible to change it. As your defaults get older, they become less significant, particularly if you can show that you’ve changed your habits.
How Can I Improve My Credit Rating?
There are several simple steps you can take to improve your credit score. They include things like registering to vote, ensuring your personal details are up-to-date and making sure you pay your bills on time.
You can make it easier to avoid missing payments by setting up direct debits. You can also build your credit score back up by borrowing responsibly, as long as you repay in full and on time each month.
What Will Happen If I Still Don’t Pay My Yorkshire Bank Debt?
Your account may eventually be subject to further action if you do not take steps to repay. This could mean being passed to a debt collection agency who will chase you for payment on Yorkshire Bank’s behalf, or court action. In both instances, your debt will increase as debt collector, court or enforcement fees are added.
Seeking Expert Advice
If you’re having trouble with debt, you could benefit from speaking to one of Scottishtrustdeed.co.uk’s professional debt specialists. A knowledgeable debt advisor will be on hand to assess your personal circumstances and advise you on the various debt management solutions available, including:
- Scottish Trust Deed
- Debt Arrangement Scheme
- Debt Management Plan
- Debt Consolidation Loan
- Minimal Asset Process
- Individual Voluntary Arrangement (IVA)
If you are seeking advice on your debt problem, you should make Yorkshire Bank aware so they can give you time to sort things out. They should give you a temporary reprieve from communications chasing payment and put a hold on further action.
Making A Complaint
If you feel that you’ve been treated poorly by Yorkshire Bank, you can make a complaint in writing to:
Customer Assist Team, 1st Floor, Guildhall, 57 Queen Street, Glasgow, G1 3ER.
If you have done this, but remain unsatisfied after receiving Yorkshire Bank’s response, you can escalate the matter to the Financial Ombudsman Service.
Financial Ombudsman Service, Exchange Tower, Harbour Exchange Square, London, E14 9SR
Can Yorkshire Bank take me to court?
If you owe money to Yorkshire Bank and you do not pay, you can be sued. If Yorkshire Bank sues you and wins, the court will enter a judgment (also called an order) against you that says you must pay back the debt. But if all your money and property are protected, then creditors cannot take them from you. Get free advice here.
Legally write off up to 85% of debt to Yorkshire Bank
Unaffordable debt to Yorkshire Bank can be legally written off by using the LEGISLATED Scottish Trust Deed or IVA program (If you reside in England). This can also protect your assets, such as your house or car from repossession. See if you qualify by using our free debt calculator here.
How can I stop debt letters from Yorkshire Bank?
Write to Yorkshire Bank to Request them to Stop Contacting You (If That's What You Want) Under the FCA guidelines, if you request that a debt collector stop contacting you completely, it must do so (with a few exceptions). Your request must be in writing. You can use our 'prove the debt letter' to do this. Download it for free here.
Can Yorkshire Bank come into my house?
Without a court order, absolutely not. Neither Yorkshire Bank or any other debt collection agency nor a debt collector is considered a court-appointed bailiff. Yorkshire Bank may visit the address of a debtor but cannot enter the dwelling without the consent of the resident.