Natwest 'pestering' students to pay off overdraft druing course

Kavanne

T Mobile don't care about customer loyalty. No one does anymore. If she phones them up to cancel she will find this out.

robin_banks

I suspect in the past banks have been pretty laid back about Students overdrafts, the current state of banks being short of cash has probably led them to chase some account holders to pay off the overdraft.

Overdrafts are repayable on demand, and the T&C's can be altered at any time.

eljmayes

Masomnia wrote: »

My RBS overdraft was surprisingly easy to set up and I haven't heard from them since. Not surpirsed they're in so much trouble

I graduated in 2005 and they only have just twigged that they may want to just give me a normal account- nine years after I started uni:)! RBS aren't the sharpest really- I've had a grand overdraft for the the past nine years but in truth have rarely used it.

System

I wonder what would happen if you wrote a cheque for the account and paid that in? You are technically paying money in even though its coming from the same account. You should give that a go and see what happens!

whitfreak

eljmayes wrote: »

I graduated in 2005 and they only have just twigged that they may want to just give me a normal account- nine years after I started uni:)! RBS aren't the sharpest really- I've had a grand overdraft for the the past nine years but in truth have rarely used it.

Well you only had a grand, that means it was never increased during your degree. And RBS give you 3 years to repay after graduating. So you right their not the sharpest, but their not 4 years behind the times only about 1....

xfoucault_2

Not to reiterate what most people have already said but having worked for Natwest Lending dealing with student/graduate accounts for 4 years up until last year whilst I was still a student at uni, I will offer my humble perspective.

(1) Whilst Natwest have the right to demand repayment of the entire amount of an overdraft at any time (see T&C's) this would rarely happen, unless your account is with Collections as you are seriously overdrawn over the agreed limit or you have failed to credit the account for a substantial amount of time.

(2) The only reason you would be contacted regarding your overdraft is if you are failing to make sure there is regular credits to the account, especially if you are overdrawn. The most basic condition of any overdraft is that you make credits to the overdrawn account.

(3) With regards to how often you should be making credits to the account - if you are a student your student loan payments would typically be credited to the account in September, January and April - this would be sufficent as long as Natwest can see that you are using your student account as your main account i.e. regular direct debits/standing orders and withdrawls.

(4) However, as is often the case some students choose to play the system and will have two student accounts with two o/d's, sometimes even more - hence their Natwest account will have little activity - zero credits and debits and so if they are overdrawn they will be contacted to credit their account.

(5) If you fail to do this after 3 months then your account would have a Z marker placed against it and would be transferred to collections. This is obviously detrimental to your credit history and hence you can be asked to repay the whole amount of the O/D back.

The most beneficial option in the long run is obviously just to keep the one student account and use that as your main account - especially as this builds a relationship with the bank and after you graduate you would be eligible for the preferential graduate banking facilities - and if you secure a graduate job with a good salary you may even be upgraded to private banking with your own graduate manager. So there are definite advantages to just using one student account and being satisfied with one O/D.

If however, you want to play the system and I don't judge anybody who chooses to do this as I know people at uni who do the same, it would be advisable to ensure that have regular credits and debits to all of your accounts so you do not fall into the same predicament as the OP.

Fire_Fox

goater78 wrote: »

I wonder what would happen if you wrote a cheque for the account and paid that in? You are technically paying money in even though its coming from the same account. You should give that a go and see what happens!

This is blatently not using the student account as your main account. :rolleyes:

If students insist on trying to play the system and run two student accounts at least have the sense to have your wages paid into one and your student finance into the other, or a regular direct debit going back and forth.

Then use one account for essential bills (rent, food, electricity, public transport) and the other for extras (cash withdrawals, mobile phone, books, clothing). This way you won't be able to fool yourself when things get tight - you'll know exactly what area you have overspent on.

byb3

Fire_Fox wrote: »

This is blatently not using the student account as your main account. :rolleyes:

If students insist on trying to play the system and run two student accounts at least have the sense to have your wages paid into one and your student finance into the other, or a regular direct debit going back and forth.

Then use one account for essential bills (rent, food, electricity, public transport) and the other for extras (cash withdrawals, mobile phone, books, clothing). This way you won't be able to fool yourself when things get tight - you'll know exactly what area you have overspent on.

Top advice. I've got two student overdrafts with HSBC and Natwest. Salary is paid into HSBC account and I transfer some cash into my Natwest Account every month where all my direct debits go out from. Had no problems so far.

Play the system, but play it well.