Threaten your bank with court action! - Step 4

Threaten court action!

If your enquiry was rejected, deemed invalid or you didn’t receive a response, write to inform the bank that you’ll be taking court action if it doesn’t settle your dispute.

This is a more stern version of the previous letter and you need to include a strict 7 day reply time scale.

As an option, if you want a speedy settlement, one tactic is to offer the bank the option of settling for a lower amount if it pays out immediately. You could offer to waiver the interest but this depends on your circumstances. The banks are likely to want a deal, so if you want a smaller amount sooner, then this is a good option.

If you do decide to broker a deal, keep in mind that the bank may not accept it and that the process could still go further. With that in mind you MUST include the phraseology ‘without prejudice’, it’s crucial. It basically means that the deal you offer is not binding and can’t be used against if the process goes to court at a later date.

What offer should you accept?

This always dependent on what you can afford. Accepting a lower offer is not losing. If you can save a few weeks hassle and afford to reduce the payment by 20%, then go for it. Others of you may want to wait, every case that has gone to court so far has gone against the banks but again, its your choice.