Yorkshire Bank removed overdraft

froggystyle

Hi,
We had a £2500 overdraft with YB and yesterday they removed it, so now we have no money, a pile of direct debits waiting to go out and an unauthorised overdraft of £1000, which they have informed us that we will get charged £25 per day for. Bank said we need a loan but with a poor credit rating I cant see this being approved.
We have an account with A&L which was opened a couple of months ago but the O/D is only £250 and I dont think they will increase it, plus wont this add to the dent in our credit score?

I really dont know what to do...any advice?

sutton111

what was the reason why they removed it? i bank with yorkshire (opened recently) and i'm wanting an overdraft but i may wait now.

froggystyle

They didnt give a reason.
If you want an account with an overdraft then dont choose YB

olly300

All banks are removing overdrafts of people - search this forum. This is because they are in a mess and fear mass unemployment.

krisskross

I_Used_To_Lurk wrote: »

Wow, that is crazy. At least 50% of the people I know live almost permanently in overdraft. When their salary goes in it brings it back to £0 balance but it goes overdrawn again as they pay their monthly mortgage, bills etc

That is frightening.

I have always had an overdraft facility but never used it. When we had a mortgage we worked very hard to save 3 months bill money in a savings account. It was never touched until we withdrew it when the mortgage was finished.

No wonder so many people suffer with stress and depression if they are constantly on such a financial knife edge.

krisskross

I_Used_To_Lurk wrote: »

Surely you're aware of the level of debt the average Brit is in.

Of course I read about it but hadn't considered that people were permanently in debt for basic living expenses with nothing to fall back on.

We never had any spare luxury money but we had no debt either.

YorkshireBoy

I_Used_To_Lurk wrote: »

Surely you're aware of the level of debt the average Brit is in.

£100,000 per household was a figure I saw mentioned this week.

olly300

YorkshireBoy wrote: »

£100,000 per household was a figure I saw mentioned this week.

http://www.telegraph.co.uk/news/uknews/1570523/Average-Briton-is-now-andpound33,000-in-debt.html

Gives the figure at £33,000 per person and includes mortgages, credit cards and personal loans.

ShelfStacker_3

Of course I read about it but hadn't considered that people were permanently in debt for basic living expenses with nothing to fall back on.

It's part of the reason many banks are either tightening up their existing policies, being less "soft" on people constantly in/over their limits or trying to make overdrafts less attractive. People don't see them as being for their true purpose (i.e. short term borrowing so you can draw against funds you expect to have, such as an uncleared cheque) any more, they see them as long term loans, or an extra few quid on their salary, or worse both.

The thing is, I'm reckoning (as in, not actually heard anything concrete, official or semi-official saying, just to make it clear) that these instances of people having the rug pulled from under them is a way of pushing the sort of person who's always in their OD into a loan. Which I would personally consider the better solution, as at least with a loan (not a nasty Ocean Finance-boll*cks loan, I hasten to add, a loan from a credible institution) you're going to be out of debt at some point, whereas if you're revolving your overdraft constantly it's much less likely.

While I'm ranting, this is part of why I don't particularly like Alliance and Leicester, specifically their interest free overdraft offers. They're just encouraging people to live permanently overdrawn, and worse encouraging the people who already do to do it for longer.

BUT ANYWAY

OP: Leaving aside a lecture; speak to YB about repaying in installments, or a debt consolidation loan. In the meantime, open a new account elsewhere to get your salary paid into, but DON'T - I repeat - DON'T leave the YB account open but with nothing going in or out or without you making contact with them. Speak to them, it's the only way you're going to get out of this situation. You should also take a bit of corrective action so you don't get into this situation again; post up a statement of affairs on the debt free wannabe board, they might be able to help.

oldwiring

Does the figure include debts in card accounts that have not gone beyond the 56 day ( or what ever is allowed by the card issuer) free of interest period? If it does it is inflated.

What ShelfStacker says is good advice. Reading between the lines of some posts, there is a lot of hard core borrowing. The o/ds are not being used properly. There should be times ( seasons) when the accounts operate in credit. TBH I am surprsied that the banks have themselves been lax in letting such things go on.

System

I_Used_To_Lurk wrote: »

Surely you're aware of the level of debt the average Brit is in.

I'm also surprised that people are not concerned about using an overdraft every month.