Halifax Overdraft Expiry Issue

effortless

Hi guys,

Just needing some advice.


I currently have a student account with a £1,000 overdraft (maxed out), and have received this letter this week:

Overdraft Application


I am writing to tell you that your current overdraft limit ends on 18th 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.

I have had the overdraft for 2 years now. I also have an HSBC account which the student finance is getting paid into (yes I know I should have changed it ASAP, but I never got round to it )


I now have a problem because I don't have the cash to pay back the O/D, but have the option to go into the branch to apply for a new one (which I will need for another year), however they need a payment, which I will not receive until 20th April from Student Finance (and the evidence of this that I have shows it being paid into HSBC)

The details to give to the bank are scarce:

Branch **** Roll Number : *************
I would like to apply for an overdraft of up to £
Signature(s) ________________________________ ________________________________
Date __________________________ Daytime Telephone Number __________________________
Please note that under our Bank Account conditions we may require you to pay us any overdraft, interest and charges which you owe on your account, at any time.

I know I've been stupid but I don't know where to go with this. I'm worried they are going to want all that money by 18th, or close the account because the payments didn't go in. Any help would be greatly appreciated,


Thanks

melancholly

well firstly, the end of the interest free bit won't mean you give all the money back - but it will mean you get charged a lot of interest. so bad, but not as bad as you're expecting!

i think having multiple student accounts like this is sailing too close to the wind precisely because of these situations, but it's too late for that (but i hope other people read this thread and pay attention!).

go into a branch and speak to someone if you're confused, but at the moment you're in a panic but you don't know if you need to yet! the likelihood is that halifax will let you have the interest free overdraft for another year as long as some income goes in. can you transfer the money from HSBC, or get a loan from your parents until the grant cheque comes in? find out from the branch what kind of money you need to pay in to make it all ok.

effortless

Thanks for your response, the HSBC account I have is a Current Account, and its easy to switch over to Halifax, I can even do it online (but the paper proof I have shows HSBC bank accounts)

I also have a part time job, and the payments from that are going into HSBC also, I have payslips.

I just need the overdraft extended as I am still studying. I will ring them now and see what they say.


Edit: Just called them, their "Instant Decision" line isn't open today. Initially when I said I am still studying she said I just need to tell them I am still studying and they would key it on for another year but then I explained the situation and her voice changed and she said "you will still need to talk to them, that is probably why they have sent you the letter"


I guess its a waiting game now.

Lokolo

Pre warning also, Halifax are cuttings people's overdrafts a lot at the moment because it wants to cut down on its risk.

melancholly

ok - don't tell them you're putting your loan into another current account. don't li about it but don't go out of your way to give them a reason to close the account!

effortless

Thanks again for the responses.

If they say no to extending it for another year, and I end up telling them whats happened, and I can't pay the overdraft, what would happen then?

Just want to be prepared for the worst

Lokolo

No idea! More than likely ask for a repayment plan to be set up. So you pay X over Y months until its all paid off. I suspect they won't do this to you because you are a student and they would rather have you in debt at a later date (when you start paying interest!).

effortless

melancholly wrote: »

ok - don't tell them you're putting your loan into another current account. don't li about it but don't go out of your way to give them a reason to close the account!

If they say payments haven'y been going in what should I say then?

Fire_Fox

The terms and conditions of student bank accounts usually state that you must be using the account as your main current account. This you have not done and there are no excuses you can make. Either switch everything (student finance, wages, DDs) over to Halifax ASAP and pray, or apply for a student bank account from HSBC and pay off you overdraft at Halifax with their overdraft.

effortless

Fire_Fox wrote: »

The terms and conditions of student bank accounts usually state that you must be using the account as your main current account. This you have not done and there are no excuses you can make. Either switch everything (student finance, wages, DDs) over to Halifax ASAP and pray, or apply for a student bank account from HSBC and pay off you overdraft at Halifax with their overdraft.

Thanks for your response.

I understand what you have said. My next pay day for wages is the 14th, but I think it takes a month for the account change to go through where I work (great! )

As far as I can see I can not take out an overdraft (open student account) with HSBC, as I already have the student account, and as I'm in my second year at college (almost finished).

I'm annoyed that I never got round to sorting this out, everything would have been fine really didn't expect this letter.


Edit: Rang them this morning and they have said I will need to go in with the letter stating that the next payment will be on the 20th April, I'm worried about doing this.

Rosieeex

Go onto student finance and change your bank details to the halifax, go into a branch and tell the date the loan is going in. That should get them off your back for a bit.

Also just transfer your wages from the other account to halifax yourself.