Bank reclaiming overdraft

sweenerlocal

My girlfriend recieved a letter a week ago dated 16th july from lloyds tsb saying that on the 13th of august they will reclaim back her overdraft, which she uses and can't pay it back in full right away.
does any one no if the bank can do this?
and is their anything we can do avoid any charges?

she went to see the bank manager this morning and was told either to get an IVA or file bankruptcy! not any help at all and has made her in tears

she works as a pre-school teacher and isn't on a low income tho she hasn't got a good credit rating as she just moved house and missed a payment in march, so a loan would be out.
any ideas?

Thanks

ps i cant help much as i have problems with lloyds too!

agsnu

sweenerlocal wrote: »

My girlfriend recieved a letter a week ago dated 16th july from lloyds tsb saying that on the 13th of august they will reclaim back her overdraft, which she uses and can't pay it back in full right away.
does any one no if the bank can do this?

Indeed they can - overdraft facilities are repayable upon demand.

and is their anything we can do avoid any charges?

They may very well be trying to force you onto a loan - this will generate them a regular income that they can rely on better. How big is the overdraft? If it's not massive, an option might be to take out a MBNA credit card and do a "super balance transfer" - meaning you can put the balance of the overdraft onto the card where it will sit at 0% for a few months. However, this may not be possible as you're running up against a deadline, and it might take some time to get the card set up (even if she is eligible).

The other option you might have is going into a competing bank and seeing if they will offer her an account with an overdraft if she switches there.

she went to see the bank manager this morning and was told either to get an IVA or file bankruptcy! not any help at all and has made her in tears

I'd suggest making a formal complaint. Making customers cry should not be tolerated.

RayWolfe

agsnu wrote: »

Making customers cry should not be tolerated.

I agree, but it was possible that the situation that she had got into made her cry.
If I didn't read T&Cs, and understand them, I too might cry if I had the experience of getting myself into a situation that I did not expect and could not control.