Can I close account and pay off overdraft monthly?

kavanagh123

Hi,

I have an account with Nationwide and have an overdraft on this account.

I have lost my job and wish to close this account as they keep charging me for unpaid direct debit fees at £30 a go and interest is ridiculous.
I have opened up another account without an overdraft with Lloyds.

Does anyone know if I can close the account with Nationwide and pay off the overdraft monthly? I heard from someone that you can do this but not sure how to go about doing it?

Thanks

kleesrosegarden

Hello,

I did this but quite a few years ago now - back in 2001. I'd had a student account with RBS who were charging me a fortune each month - I closed the account and transferred the overdraft to a personal loan, and then paid that off whilst having a current account with Abbey. In retrospect it cost me a lot of money but I didn't have an option at the time - worth talking to your bank and the CAB to see what your options are, I think.

Good luck and sorry to hear about your job loss.

anniecave

have you cancelled the direct debits and set up alternative payment arrangements? Otherwise the charges will continue...

ihatedebt_2

I don't believe Nationwide will allow closure of the account, without clearing it - I have a reducing overdraft with them and my overdraft is reduced by a fixed amount on the first of the month.

With regards to unpaid direct debit fees, this is the issue you need to deal with as it is all very well closing the Nationwide account, but you may just transfer this problem elsewhere - and from my experience Nationwide charge some of the lowest fees for unpaid bills!

As the last poster has put cancel direct debits and arrange for alternative payment methods, this way you know that there is nothing thats going to be coming out of the bank to surprise you and cause you to go over your overdraft limit.

kavanagh123

all sorted now. they put me on a payment plan. thanks for advice guys