Expired Overdraft!

cgillamod

is my bank being heavyhanded with me.i have had my current account for the past ten years and three of them with my current overdraft facility.however recently i received a letter stating my overdraft will expire on 1st december three weeks notice.i appealed at the branch i opened my account but it was rejected with the reason that i had missed two payments on my personal loan.this was true but i did explain that i had previously arranged for the two payments to be added on to the end of the loan period and had set up a new direct debit fromwhich payments were now regularly coming.this was not satisfactory for them and i was told by someone in their collections department that i must pay a minimum of 48 pounds per month back and that i should move all direct debits into another account otherwise i will incur additional costs.to make matters worse i was initially told by an idiot on the phone that i couldnt actually sort this problem out over the phone until three days before the deadline because it doesnt how up on their system until that time!!!!! help....

opinions4u

You made yourself a bad risk by missing the loan payments.

Your terms and conditions will say something along the lines of "overdrafts are repayable on demand".

That demand has come.

wheelel

which bank would this be then? it smacks of Abbey National!

hippey

The problems with long term borrowing on overdrafts, they are 'repayable on demand'

No leg to stand on I'm afraid, you could ask for a little longer to pay, or a payment plan etc..... but a lot of banks will call in OD's when you start to miss other lending with them.

cgillamod

yes it was abbey and they wouldnt negotiate any payment plan with me.they would only accept the amount they specified and i cannot afford that each month so now i dont know what to do!

cifpower

What you should do is open another bank account and have your credits deposited there so Abbey doesn't eat them up to pay for the OD. You can then send £50pm or so to your old account to pay the debt down.

light_play

Hi,

I've just had a similar problem with Halifax, they removed my overdraft without telling me that they were going to do so. They say it was because of the way the account has been conducted. I have set out my experiences in another post above and I am persuing a complaint with them.

Luckily for me I had the option of borrowing money from a relative to bring the account into credit, but if I hadn't I would have cancelled all direct debits and payments into the account and left it in limbo while the complaint was considered. This would have been a pain to rearrange all direct debits with another account and it was inevitable that further charges would have been accrued along the way.

On paying the money into the bank I was told that had I not of had the money to pay in then Halifax would usually have reinstated the overdraft with an agreed repayment plan in order to slowly reduce the overdraft. This may be an option available to you if you can't borrow money off a relative or another source. Remember if you can borrow, to borrow enough to cover all direct debit payments and charges that may occur and still leave you account in credit.

Good luck,
I know it's a horrible feeling, especially just before Christmas, I hope you get it sorted and have a nice Christmas.

Steve