I wonder if anyone can help with this slightly bizarre situation. I closed my NatWest bank account in January 2006. I believed it was closed but in reality it seems is stayed open and 'dormant' as I have a loan account with them also and therefore a current account is required, The loan is repaid through another account.

On checking my credit report, I have discovered that the account defaulted on 23rd March 2007 with a bank charge applied on 23rd February. It has taken some quite amazing amounts of digging but I have discovered the cause of the bank charge - an old cheque dated 23rd September 2005 for £50 was cashed (this was for something I bought in Woolworths and then returned but never got the cheque back). I also have a very clear recollection of cancelling said cheque when I returned my cheque book on the 'just incase' basis. Of course now no evidence of this. Obvoiusly, since I thought the account was closed, there was no money in there and by this point the cheque was 2 years old - ish.

I have never received a single thing from NatWest on this - it was only discovered when I got a copy of my credit report and saw the default sitting there.

So I wonder if anyone has any thoughts on this - obviously my aim is to get the default removed. The £38 charge has accrued interest and is now £48 and I would prefer not to have to pay this although I could, in a negotiation situation, be persuaded.

Where do I stand on this - will I ever get it removed? Are they allowed to cash a cheque that is 2 years old? Presumably they should have written to me but am loathed to go down the long and painful process of requesting all docs etc. (I forget the technical term.)

All feedback welcome. Many thanks.