Student Overdraft - I'm Lost!

LiverpoolStudent

Upon opening an Halifax Student account in 2006 I was fully aware that;

An interest-free overdraft of up to £3,000 (typical 0% EAR variable) for up to five years – plus an extra year after you graduate

(They are still advertising this... http://www.halifax.co.uk/bankaccounts/studentcurrentaccount.asp )
Anyway, I graduate in July :beer:, but I have just this second received an emailed document stating;

Overdraft Application
I am writing to tell you that your current overdraft limit ends on 1st March 2009.
If you would like to apply for a new overdraft, you will need to pay your grant cheque, or other regular payment which we accept for these purposes , into your account. Please fill in the details below and send the form to your local branch.
As you qualify under our students ' scheme, any overdraft up to and including £3,000 will be interest free (0% EAR* variable) .
Once you no longer qualify for our students ' scheme, our standard rates will apply.
Yours sincerely

I cant phone until Monday now so can anyone give me any clues?

Bit baffled why I have to reapply? - is there a chance they can turn this down? I have never exceeded my overdraft.

Robert_Sterling_3

The normal three years for a degree course is nearly up.
The interest free loan is for up to five years.
This means not more than five years.
It does not mean not less than five years.
They could have waited until the end of the summer term I think.

Lokolo

HSBC do the same. If you haven't used it then who cares

jackomdj

Lokolo wrote: »

HSBC do the same. If you haven't used it then who cares

OP said he has not exceeded it rather than not used it.

Sorry OP I have no words of assistance.

Crabman

Hi LiverpoolStudent, welcome to MSE :beer:

It looks like you have to make a payment (probably student loans company) into the account to enable you to apply for the overdraft, is that right? It could simply be that they want to ensure people using the interest-free overdrafts are actually using the account as their main one.

You may be able to find a better account in these articles in case it doesn't work out:

http://www.moneysavingexpert.com/banking/Student-bank-account

http://www.moneysavingexpert.com/banking/graduate-bank-accounts

I'll move this thread to the Student MoneySaving board

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

Fire_Fox

Are you still paying into the account on a regular basis? Have you advised Halifax each year that you are still a student and have not left the course? Several banks will withdraw your interest free overdraft if you either do not make regular payments into the account (wages/ grant/ loan), or do not advise them of your continues student status (Co-op for one). Read the full terms and conditions thoroughly and you will find the answer.

rb10

The way Halifax work all overdrafts (not just student ones) is to run them for a term of up to a year at a time. Every year, the overdraft will have to be renewed, for another year.

So, you need to contact them to ask if you can have the overdraft renewed. Best way to do this is to put in your phone number at http://www.halifax.co.uk/bankaccounts/callback.asp (Monday - Friday 9am-5pm, Saturday 9am-12noon), they will then call you back, and be able to give you an instant decision.

They are allowed to turn it down under the T&Cs of the account ("overdrafts are reypayable on demand"), but if the account has been managed well then you have a good chance of keeping it.

If they do renew it, then it will still be interest free up until one year after you graduate.

Lokolo

jackomdj wrote: »

OP said he has not exceeded it rather than not used it.

Sorry OP I have no words of assistance.

Ops! So he did.

Ask for a repayment plan. Do you have a job? They tend to do it to people who are unemployed because you are riskier (less likely be able to pay it back)

rb10

Lokolo wrote: »

Ops! So he did.

Ask for a repayment plan. Do you have a job? They tend to do it to people who are unemployed because you are riskier (less likely be able to pay it back)

No, no, no, no, NO!!!!!

They haven't said yet that they won't renew the OP's overdraft, just that it needs to be renewed. All he has to do is contact them to ask for it to be renewed.

A repayment plan can come later if they decide not to renew it and the OP is unable to pay it all back in one lump, but not before then.

Contact them tomorrow, chances are they'll be able to renew it for you for another year.

Lokolo

I'm thinking of the worst tbh.....

ashapala

To OP, I recieve the same email from halifax every year regarding my student account overdraft. I had it in first year / second year and recently had it for this year.

I ignore them and my overdraft automatically renews with no interuption to my available balance.

To be on the safe side i have always made sure that if it did get removed i have enough money in the account to avoid a fee.

err on the side of caution, it would be interesting to see if it renews for you without you intervening.