Natwest 'pestering' students to pay off overdraft druing course

FreheitOverture

Natwest have been good to me. They renewed my Railcard when they shouldn't have done (you actually do have to regularly use the account to get this) and then increased my overdraft when I asked for them to as I could prove I was in part time employment.

If you don't use the account why should you be entitled to the money? They don't offer accounts just so people can withdraw the whole overdraft and then leave the account completely empty.

ultimatedingbat

I recently had a letter like this from Lloyds TSB. I have no part time job purely because I can't find one (and not for lack of trying) I phoned them up, told them the only money going in is on these dates as they know. They photocopied my letter from the finance people and put it on record when i got the account. I told them to leave me alone until those dates because the account is active in money going out, just only 3 times a year money in, and if i got another letter i'd be going to another bank.

Catseyez

I had two very similar letters from Natwest recently. When I phoned, the lady said that I hadn't been making any deposits or withdrawals....my overdraft is at it's limit and I'm a final year student who isn't earning at the moment, which I don't think is that unusual. So I was made to make a £10 payment there and then to stop my account from being closed and the overdraft being cancelled! I was furious...I don't need the bank hassling me like this whilst I'm stressing out with all the work I need to do. :mad:

Kavanne

Catseyez wrote: »

I had two very similar letters from Natwest recently. When I phoned, the lady said that I hadn't been making any deposits or withdrawals....my overdraft is at it's limit and I'm a final year student who isn't earning at the moment, which I don't think is that unusual. So I was made to make a £10 payment there and then to stop my account from being closed and the overdraft being cancelled! I was furious...I don't need the bank hassling me like this whilst I'm stressing out with all the work I need to do. :mad:

Isn't your student loan being paid in? That usually keeps them happy.

Fruitloops

Hmm, I have a Natwest student account too so I'm glad I read this. I'm well into my overdraft but it is my main account so I shouldn't have a problem should I?

Awec

My overdraft with the Halifax is maxed out, no problems here though.

Kavanne

Fruitloops wrote: »

Hmm, I have a Natwest student account too so I'm glad I read this. I'm well into my overdraft but it is my main account so I shouldn't have a problem should I?

They look for money coming in so if you have wages or student loan or parental contributions paid in you should be fine.

vanpiggy

Yikes! I never had any problems with my natwest student or graduate account like these, and my only source of income during my degree was my student loan, and student loans and bursaries during my PGCE.

I can see the benefits of trying to open another student account and pay off the one with the other, but I thought the terms and conditions of these accounts suggest that you should only have one student account at a time? That's just from memory though, you should check before you try.

whitfreak

This is happening more and more. In general its only been happening to dormant accounts, i.e. those with no income or withdrawals especially when the overdraft is maxed.

Overdrafts are repayable on demand even if you keep within the t&c's, they are basically at the banks whim. But they don't normally demand money back unless you're in breach or they think you are in breach of the terms otherwise it scares customers off.

While having two student accounts is technically against most of the banks T&C's, theres not normally a problem if you are transfering. There wasnt when I transfered from HSBC (after the whole no graduate interest free overdraft debacle) to natwest. as I had both for a couple of months.

To those who have their overdraft recalled, go into a branch and talk to an advisor and plead your case. If you loan is your only income and you are using your account things should be sorted in your favour quickly, if you've played the system you might have a harder time. But talking to a human directly with evidence in hand is normally more effective than talking over the phone.

katy1987

just thought i'd add my friend's experience in here-

she was with lloyds on a student account, and maxed out her overdraft during the first year. during the summer, she didn't use the account for a couple months (as she was skint). lloyds proceeded to apply a 33% (yes, THIRTY THREE PER CENT) interest charge and 'kindly' let her pay it back at £100 a month. we're now in our third year: she finally paid off the last of that overdraft about a month ago...

don't think i didn't try to get her to talk to the bank/complain/go to citizen's advice/apply to the access to learning fund/switch to another bank!!! frustratingly, she just would not listen. i even filled out an A.L.F. fund for her, all she had to do was get bank statements, and she wouldn't because "they probably wouldn't give her any money anyway". er.... no harm in trying!

(O/T: now i'm trying to persuade her to switch to a different mobile phone network to save HER money- but she won't as "[she's] been with t-mobile for years and they've been good to her")

*bangs head against a brick wall*