We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

My overdraft has been cancelled - no notice given!!

babar_2
babar_2 Posts: 3 Newbie
in Budgeting & bank accounts
I have a current account with Bank of Scotland and have had it for 10 years. I also had an authorised £2000 overdraft which they have cancelled today and given no notice to me! When I phoned up they said it had expired today(even though they'd told me my account review was Jan 2009) but agreed to give me a month to clear it. Help!!! I feel so panicky - I have a month to find £2000. My credit rating is pretty weak, Im going to apply for a loan, but should I also open up a different bank account? Im gutted that I might lose an account I've held for 10years but Im so angry at Bank of Scotland right now. Would it be worth complaining?

Comments

  • WhySoHard_2
    WhySoHard_2 Posts: 300 Forumite
    babar wrote: »
    I have a current account with Bank of Scotland and have had it for 10 years. I also had an authorised £2000 overdraft which they have cancelled today and given no notice to me! When I phoned up they said it had expired today(even though they'd told me my account review was Jan 2009) but agreed to give me a month to clear it. Help!!! I feel so panicky - I have a month to find £2000. My credit rating is pretty weak, Im going to apply for a loan, but should I also open up a different bank account? Im gutted that I might lose an account I've held for 10years but Im so angry at Bank of Scotland right now. Would it be worth complaining?

    So you're £2000 overdrawn against a £2000 limit?

    It seems HBOS are quite keen on cancelling overdrafts at the moment judging from other posts here?
  • cifpower
    cifpower Posts: 6,502 Forumite
    Overdrafts are repayable on demand and although it would be nice if they gave you notice they don't have to.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Go into branch, phone up or whatever, and ask for a repayment plan.

    It'll be over 12 months or whatever but it gives you better options than the whole £2k at once.

    They are likely to say yes if you say 'I can't afford it all so if you want your money you're going to have to help me out a bit here!!' ;)
  • johnllew
    johnllew Posts: 1,928 Forumite
    Have you misbehaved? Gone over your limit?
  • ShelfStacker_3
    ShelfStacker_3 Posts: 2,180 Forumite
    Probably that you were close to your limit, I'm guessing fairly consistently bumping up against it at the end of each month before you were paid? Banks hate that, with good reason - they're for funds you expect to arrive soon, they're not a long term loan that you never pay off. Your best course of action is to call them up and set up a payment plan or personal loan. They would probably rather you get a loan and pay it back in instalments than not pay it back at all.
  • babar_2
    babar_2 Posts: 3 Newbie
    No I dont misbehave on it but yeah im quite close to the bottom of the two grand at times.

    Will go into bank tomorrow and set up a repayment plan - thanks everybody.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    babar wrote: »
    No I dont misbehave on it but yeah im quite close to the bottom of the two grand at times.

    Will go into bank tomorrow and set up a repayment plan - thanks everybody.

    Good luck, keep us informed.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Part of the Furniture Combo Breaker
    The harsh reality is the banks are having difficulty getting credit and in this semi-capitalist world unfortunatly they have to pass it on.

    Since you have a bad credit rating it might be too difficult to get a credit card to stooze it on to so I guess the only option will be to get a £2000 loan ASAP.

    Id imagine HBOS will offer you this loan at around 20% APR which is probably no different to your current overdraft.

    On the brightside at least you will be paying it off and hopefully you can better position yourself in the future.

    Best of luck :o
  • Alias_Omega
    Alias_Omega Posts: 7,915 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    You owe then £2000, and they want it back.

    If you dont pay it off, worst case i think they can give you a blemish on your credit rating, close your bank account & maybe give you a CCJ eventually.

    Obviously you could always put the account into dispute etc when they do so, by requesting the CCA, that they probably dont have.
  • chambta
    chambta Posts: 2,770 Forumite
    Part of the Furniture Combo Breaker
    Why would there be a CCA for an overdraft?
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.9K Banking & Borrowing
  • 254.6K Reduce Debt & Boost Income
  • 455.7K Spending & Discounts
  • 247.7K Work, Benefits & Business
  • 604.7K Mortgages, Homes & Bills
  • 178.7K Life & Family
  • 262.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture