Natwest 'pestering' students to pay off overdraft druing course

samsong_1234

Got a letter telling me to call up today, which i did and found i had to be paying money into the account every 42 days ???

i said but i am a student, and i was told as long as they have record of money going in every 42 days they would keep the overdraft otherwise they would have to refer it to credit collection.

I have over a year and a half left on my course, this is crazy. Is this all because natwest are part of RBS now and they are clawing back any money they can?

jskcv1

samsong_1234 wrote: »

Got a letter telling me to call up today, which i did and found i had to be paying money into the account every 42 days ???

i said but i am a student, and i was told as long as they have record of money going in every 42 days they would keep the overdraft otherwise they would have to refer it to credit collection.

I have over a year and a half left on my course, this is crazy. Is this all because natwest are part of RBS now and they are clawing back any money they can?

Doesn't sound right, Is this an Interest Free Overdraft? I assume it is being a student one. Did they stipulate how much money needs to go in, if they didnt, next time you need to take £20 quid out the cashpoint, withdraw £30, and pay in £10....

I had an interest free overdraft all through Uni,and 3 years after graduation and never had a problem with Lloydstsb....

If you speak to them again, just tell them you aren't happy with this arrangement and threaten to close the account and move elsewhere.

dieselhead

My Brother had this account as a student and they said the same thing to him, he just made sure there was a little money paid into the account every so often such as a birthday cheque, or did as suggested above, it never caused him any problems and this was long before the banks issues!

Tommy99

Move to HSBC, there student account is better in my opinion. They even called me the other day, cos they were concered that my card had been stolen. No other bank i have been with has ever done that. Good Luck

lulaloo

Surely all bank accounts require you to pay something in if you have taken out an overdraft with them? Of course you have to make payments into it, even if it's just £10 a month. You can take it straight back out again, but you have to have some kind of activity.
And they aren't 'pestering you to pay back your overdraft early' They won't take whatever you pay in off your overdraft balance

Lokolo

1. Overdrafts are repayable on demand, so you're lucky they even gave you a letter. If I were them I would have taken it away and told you to go elsewhere.
2. You're expecting banks to give you free money even when you don't use the account?

GrammarGirl

Lokolo wrote: »

1. Overdrafts are repayable on demand, so you're lucky they even gave you a letter. If I were them I would have taken it away and told you to go elsewhere.
2. You're expecting banks to give you free money even when you don't use the account?

But it's a student account, and some students get no income other than their student loans. How often does that go in - September, January and April? So there will be periods of more than 42 days without anything going into the account.

I'm sure lots of students use their accounts in this way.

Fire_Fox

GrammarGirl wrote: »

But it's a student account, and some students get no income other than their student loans. How often does that go in - September, January and April? So there will be periods of more than 42 days without anything going into the account.

I'm sure lots of students use their accounts in this way.

Read your terms and conditions: banks give interest-free overdrafts to students on the understanding that they use the account as their main current account. Most students work part-time and would have either wages or money from parents going into the account on a regular basis so this isn't a problem. Banks are not charities, they are fully aware that graduates often bank with the same organisation for many years applying for a credit card, loan or mortgage and paying out lots of lovely interest. They are also fully aware that some students play the system, getting the largest interest-free overdraft possible and leaving the account dormant thereafter.

willo65

If you have maxed out o/d and now using a different bank then i'm not surprised you got a letter like this. This may not be the case but would be main reason they would do that.

GrammarGirl

Fire_Fox wrote: »

Read your terms and conditions: banks give interest-free overdrafts to students on the understanding that they use the account as their main current account. Most students work part-time and would have either wages or money from parents going into the account on a regular basis so this isn't a problem. Banks are not charities, they are fully aware that graduates often bank with the same organisation for many years applying for a credit card, loan or mortgage and paying out lots of lovely interest. They are also fully aware that some students play the system, getting the largest interest-free overdraft possible and leaving the account dormant thereafter.

That's the key word though - most. I completely understand that your student account should be your main account. But although most students do work/get money from parents/have some form of cash paid in regularly, there will be some who have nothing other than their student loans. Some may also work cash in hand.

I don't see banks as charities and I'm not recommending 'playing the system', I'm just trying to give the OP something more constructive than 'the bank can take your OD away at any time' - we all know ODs aren't to be treated as loans or free money or whatever else.

melancholly

it'll be in the T&Cs that you have to use the account 'regularly' (to some specification) - i've not heard of it being every 42 days (i thought as long as grants were paid in it was fine, but that may have changed).

it doesn't sound 'unreasonable', just perhaps should have been made clearer earlier. i'd recommend going into the university branch to check with someone there - they are usually more experienced in dealing with students. if you are using the account regularly, just not as often as every 42 days, you may be ok. if you aren't using it as your main account, then you have broken the T&Cs so you may just have to change your banking habits (which shouldn't be practically too difficult).