Bank advice please!

Northernbird_2

We're over our overdraft at our bank, and I've switched our accounts to basic ones (otherwise all our salaries would have disappeared!), but I need to go in to speak to them about repaying the money.

I have a loan with them which is paid by standing order from the account. Do you think that they would let me switch the standing order to my new account?

Also, over the last three months we've incurred £465 worth of charges due to DDs going out and being charged for going over the overdraft. I know it's a controversial subject, and I realise they're charges for breaking the Terms and Conditions of the account, but it's making our situation worse, is there any chance they would refund them??

Any advice on how to approach them on these things would be appreciated. I'm thinking we propose to pay a set amount each month to pay back the overdraft, and ask for charges to be frozen (fingers crossed!!!).

Any advice very welcome!

System

Northernbird wrote:

We're over our overdraft at our bank, and I've switched our accounts to basic ones (otherwise all our salaries would have disappeared!), but I need to go in to speak to them about repaying the money.

I have a loan with them which is paid by standing order from the account. Do you think that they would let me switch the standing order to my new account?

Hi Northernbird

Not sure how much you're still using the overdraft on your current a/c. Your new basic bank a/c's - are they with the same bank? If so, the bank could still take money from those a/c's.

Can't see why they should care where the Loan Repayment comes from, just as long as it is actually paid.

Also, over the last three months we've incurred £465 worth of charges due to DDs going out and being charged for going over the overdraft. I know it's a controversial subject, and I realise they're charges for breaking the Terms and Conditions of the account, but it's making our situation worse, is there any chance they would refund them??

Tricky one this, you want the bank on your side, so you have to do everything to keep them sweet at the moment. From what I've read on https://www.bankchargeshell.co.uk it would appear that you could reclaim these charges, and I don't believe there's any time limit.

If I was in your situation, I'd discuss the a/c face-to-face with the bank to keep them on side as much as possible, and then pursue them later for the £465 when my situation had improved. (Obviously everyone will have a different viewpoint on this.)

Any advice on how to approach them on these things would be appreciated. I'm thinking we propose to pay a set amount each month to pay back the overdraft, and ask for charges to be frozen (fingers crossed!!!).

As I say above, not sure how much you're stilll using the overdraft, or if you've transferred all bills (except the loan repayment) to your new basic bank a/c's. If you're still using it, I'd have thought your priority is to get within and stay within your authorised overdraft limit first, and then gradually reduce that further until the overdraft limit is at nil.

If you show the bank a realistic budget as to how you intend to repay the overdraft then you'll no doubt improve the chances of them accepting your proposal.

Hope some of the above helps.

Dave

Northernbird_2

Thanks for the advice. The basic accounts are with a bank we owe no money to whatsoever. I was very careful on that!

I am intending to speak to someone face to face, as I think it's really important that they see me as a person. I have been speaking to them a number of times for a couple of months as I could see the problem coming and I kept trying to explain this to them, but I think until it gets to the crisis point, they don't really believe you when it comes to current accounts.

I've nearly switched everything over to new accounts, there are a couple of small ones that still need to be done but I'm nearly there with it. All that will be left will be the loan standing order.

I will leave the £465 for the time being, I don't want to anatagonise them.

Once again, thank you. xx

System

Northernbird wrote:

Thanks for the advice. The basic accounts are with a bank we owe no money to whatsoever. I was very careful on that!

I am intending to speak to someone face to face, as I think it's really important that they see me as a person. I have been speaking to them a number of times for a couple of months as I could see the problem coming and I kept trying to explain this to them, but I think until it gets to the crisis point, they don't really believe you when it comes to current accounts.

I've nearly switched everything over to new accounts, there are a couple of small ones that still need to be done but I'm nearly there with it. All that will be left will be the loan standing order.

I will leave the £465 for the time being, I don't want to anatagonise them.

Once again, thank you. xx

Hi

I'm pleased to hear that about the basic bank a/c's - you seem to have got it all fairly sussed.

If your old overdraft and your loan are both unsecured debts then you should be ok. Arrange an affordable overdraft repayment structure and try to get back within your authorised overdraft limit ASAP. The worst the bank can do on an unsecured overdraft (as with a credit card debt) is take you to court.

If the most you can currently afford to repay is £1 per month, then pay that.

If the bank say that they're not satisfied with your offer of repayment, pay it regularly anyway to show that you are not running away from your debt.

BTW, have you contacted CCCS about your debts? Do you have any priority debts (rent/mortgage/gas/electric/council tax etc)?

Best wishes
Dave

Northernbird_2

My and OH financial situation is pretty complicated (and something I'm very ashamed of). I have a DMP, but I took on further debt (which I know was not a clever thing to do). Our earnings have dropped over the last 6 months and we're at crisis point again. I've had my lightbulb moment and I'm determined to get our finances back under control, and then work on paying as much off as possible as quickly as possible.

This does make it slightly more complicated when it comes to speaking to my bank etc.

Thank you for your help. Fingers crossed!!

System

Northernbird wrote:

My and OH financial situation is pretty complicated (and something I'm very ashamed of). I have a DMP, but I took on further debt (which I know was not a clever thing to do). Our earnings have dropped over the last 6 months and we're at crisis point again. I've had my lightbulb moment and I'm determined to get our finances back under control, and then work on paying as much off as possible as quickly as possible.

This does make it slightly more complicated when it comes to speaking to my bank etc.

Thank you for your help. Fingers crossed!!

Well we all live and learn! At least you don't have to feel ashamed on here.

Have no first-hand experience of DMP's, so may be talking a load of tosh, but can't the "new" debts be incorporated into the DMP? Though I suppose that would mean re-negotiating with every creditor already in your DMP?

From a cash point of view, you've protected your earnings by paying them into the basic bank a/c. So as long as you're living within your budget, and using the surplus to repay your debts (DMP and new ones), I don't see what else you can presently do.

Anyway, take care and let us know how things go with the bank.

Dave

Northernbird_2

Little update on this, as I've just had a phone call from my bank. I went in on Friday and their systems were down so they couldn't do anything, but I spoke to a woman and asked about the loan and explained about the overdraft. She said she couldn't change the standing order, and told me to put the loan money into my current account for the standing order to go from my current account into the loan account. Fine, I asked if it would be a problem that I'm overdrawn and she said no, it will go through and then come back next week to sort out repayment of the overdraft. Looking good, or so I thought. Put the money in today, yeh!, another loan payment made, but they've just called me and said the loan payment hasn't been made due to insufficient funds, and the loan money I put in has just sucked up some of the overdraft. Apparently the woman gave me incorrect information. She's asking me if I have £360 spare somewhere else, or if I can borrow someone's credit card!! That, together with another £125 of charges on Monday, and I feel like I'm sinking.

I just wanted a little rant about it, as it feels like I'm taking one step forward and two steps back at the moment. I'll figure it out somehow. Bank first thing in the morning me thinks.

Good thing - so far I've not spent a penny today (apart from the £360 repayment that is). :eek:

System

Northernbird wrote:

She said she couldn't change the standing order, and told me to put the loan money into my current account for the standing order to go from my current account into the loan account. Fine, I asked if it would be a problem that I'm overdrawn and she said no, it will go through and then come back next week to sort out repayment of the overdraft. Looking good, or so I thought. Put the money in today, yeh!, another loan payment made, but they've just called me and said the loan payment hasn't been made due to insufficient funds, and the loan money I put in has just sucked up some of the overdraft. Apparently the woman gave me incorrect information. She's asking me if I have £360 spare somewhere else, or if I can borrow someone's credit card!! That, together with another £125 of charges on Monday, and I feel like I'm sinking.

Hi Northernbird , sorry to read the above

From what you say, if the bank has given incorrect advice that has resulted in you being penalised by them, then surely you've got something to argue about there?

I can't give any practical advice on how to tackle what they've done, but I'd see what the CCCS have to say.

It's stating the obvious, but you've got to move your remaining s/o's to your new basic bank a/c now.

Sorry I can't give more advice - best of luck for sorting it out.

Dave

Northernbird_2

I hope everyone is ok out there.

Just as a further update on this, I went to see my bank last week to see what I should do. The first woman I saw was really nice, and it looked like she was suggesting they could increase my overdraft to then bring it down again over time and my loan would still be paid.

She said she didn't have the authorisation to do that, so brought someone over to have a look. She wasn't very sympathetic, and her only suggestion was a managed loan, where they would put my credit card, loan and overdraft into one, and then look at what I can afford to pay back. The interest rate would be variable and probably a lot higher than what my credit card and my loan is at now (my loan is at 4.8%). I realise this is my fault for getting to this point with my overdraft, but her suggestion would mean I would have defaulted on my loan, and I would end up paying thousands of pounds more in interest on my loan. All I need to pay back on my overdraft is £1,000, but their only suggestion will cost a lot more and I'm up to date on my loan and cc (well I'm now one payment behind on my loan because of what happened last month with the overdraft). I can afford to pay back regular cc and my loan payments, and I just want to pay back as much possible and as quickly as possible on my overdraft over the next few months without messing up my loan.

I don't suppose anyone has any suggestions? My only 2 thoughts are to go into a different branch to see if someone can be more helpful, or pay my loan payments directly into the loan account, and just throw as much as possible at the overdraft over the next few months and hope it works?

As an aside, I've not spent a penny as yet today!