Overdraft being withdrawn

Mysticdreamer

Hi I just joined the forum today and would be so grateful for some advice.
Has anyone received a letter from their bank withdrawing their OD?
I got one saying mine would expire on 01/01/09
its £3,900 and I am worried sick, rung the call centre and they said I have to go into my Branch and appeal via an underwriter
We are going on Sat but they said that if we dont win the appeal it will go to collections.

Any advice gratefully received.
Really worried

pebblespop

hsbc sent me a letter today saying they have reviewed my overdraft. luckily they have let me keep it.

overdrafts are repayable on demand but i did'nt think the banks usually do this. there view on overdrafts has probably changed now as the economic climate has changed so much.

my letter does say my overdraft will be reviewed again next year.

i don't think there is much you can do if the bank won't let you keep it - maybe find another bank who will give you the same overdraft or pay it off with a 0% credit card or pay it back to the bank like a loan.

~Beanie~

Mysticdreamer wrote: »

Hi I just joined the forum today and would be so grateful for some advice.
Has anyone received a letter from their bank withdrawing their OD?
I got one saying mine would expire on 01/01/09
its £3,900 and I am worried sick, rung the call centre and they said I have to go into my Branch and appeal via an underwriter
We are going on Sat but they said that if we dont win the appeal it will go to collections.
.
Really worried

I haven't had one myslef but there is someone over on the Budgeting and Current Accounts board who has received one from Barclays, who do you Bank with?

£3,900 is a vary large overdraft, do you have a high income going into the account each month? Lots of overdrafts expire but are usually renewed unless circumstances have changed drastically since it was taken out. I would try not to worry too much until you have been into the branch on Saturday.

Mysticdreamer

Beanie, I bank with Abbey,,,
Yes its a huge overdraft I know...they kept offering and I kept taking...
I will report back on Saturday what they say but banks arent my best friend and I hate facing the debt Im in.

Pebblespop, Do you think it will be easy to get a new bank account with someone else, in view of my debts?

Thanks for replying.:beer:

mbaz

Hiya

Think this is a sign of the times unfortunately. Just had mine cut with no warning. Even if you have a bad credit record you could always get a basic bank account. Get it opened asap and arrange for your salary and direct debits to be moved before Jan. Then at least your salary wont get eaten up by this.

Good luck!

Nix143

mbaz wrote: »

Hiya

Think this is a sign of the times unfortunately. Just had mine cut with no warning. Even if you have a bad credit record you could always get a basic bank account. Get it opened asap and arrange for your salary and direct debits to be moved before Jan. Then at least your salary wont get eaten up by this.

Good luck!

Excuse me if I ask a newbie question here, I'm new to DFW

If I arrange a second bank account and move all my direct debits to it and this leaves me overdrawn at my original bank how will the bank try to enforce this debt? I am assuming it would screw my credit rating up even more than it is already obviously - but what are do banks do when you do this?

Apologies for the thread hijack

mbaz

Hiya

Yes if you move everything and then can't pay back the overdraft you will default which could then go on your credit file. BUT if you can't afford to pay this all in one go you should open a new account and move everything otherwise your Jan salary (unless u earn more than £3900 a month) will be swallowed up by paying back the overdraft and you'll have no money for the month)

misspoppy

Hi Don't worry too much about this, this happened to me but the bank actually closed my account as well. They let me have my wages that month (my od was way over my salary) I took this money and opened another bank account and then made arrangements to repay the od which was at a level I offered and could afford. If it helps it was natwest I banked with. It felt like the end of the world at the time but it wasn't it gave me the chance to sort myself out and get out of the cycle of charges and being od all the time.

I hope this helps

pebblespop

Mysticdreamer wrote: »

Beanie, I bank with Abbey,,,
Yes its a huge overdraft I know...they kept offering and I kept taking...
I will report back on Saturday what they say but banks arent my best friend and I hate facing the debt Im in.

Pebblespop, Do you think it will be easy to get a new bank account with someone else, in view of my debts?

Thanks for replying.:beer:

you will be able to open a basic account somewhere to get your wages and direct debits paid to/from. i would be surprised if you can get the same overdraft with another bank unless you are a very high earner.

Intergalactic_Floozie

HSBC sent me a letter stating that they were withdrawing my facility. This is because I had an overdraft with them, then moved, and didn't pay it back. Up until a few months ago I was having my child benefit paid into the account, but then stopped it, so at review time they said as I was not paying any money in, they were removing the overdraft facility,

I rang them when the letter came and they asked (well, told) me to pay it back at £120 per month over twelve months but as you can see from signature below, I am trying my utmost to pay it off earlier.