Overdraft not being renewed

Vans_101

Got a letter from HBOS telling me my overdraft is due for renewal at the end of the month and that I had to contact them. Called them today and they told me that it will not be renewed and at the end of the month it will be reduced to £0. I'm currently overdrawn by £2000 so this is going to be a problem. I cannot pay it back as I am not working during term time and relying on my overdraft and student loan. I have a job starting as soon as my exams are over so will be paying it back over the summer. But can they do this? I know overdrafts are repayable on demand but seriously? How can you offer up to £3000 to students and then just ask for it back when they can't pay back. Fair enough if they reduced it but to take it away completely? I have met all the criteria in that I pay my full loan in each month and I haven't got over the limit. Still got 2 years left of uni so I really need the overdraft. I rely on it to bridge the gap when I am not working. I was working part time but my contract was not extended due to the "credit crunch" and I am not eligible for any government benifits. Any advice on what I should do? can I complain to anyone?

Lokolo

Ask to borrow some money? Ask them for a repayment plan if that desperate.

No point complaining. They aren't going to give away free overdrafts without wanting something back.

Vans_101

Lokolo wrote: »

Ask to borrow some money? Ask them for a repayment plan if that desperate.

No point complaining. They aren't going to give away free overdrafts without wanting something back.

They told me that my account will be passed on to the collections team when my overdraft expires. All my income goes into that account so when my overdraft expires I wont have any access to it. They give students interest free overdrafts in the hope we will bank with them when we graduate. Its not that I dont want to pay it back - I can't. My first wage won't be paid till the end of June so I cant really live on thin air for 3 months.

birduk

Don't worry, I had exactly the same thing when I was with Natwest. Yes, they are in their rights to do that, but doesn't mean that they should! Clearly they will now lose all your future custom. It may be that they haven't seen enough activity on your account?

I went to Barclays, asked to open a student account, then immediately applied for an overdraft. The whole thing took about three days from start to finish. They gave me something like £2k, but it was a long time ago. I then immediately paid off the Natwest overdraft.

So my advice is get another bank to give you a student account and overdraft- these are the prime years for getting student customers. After this point people find it very difficult to change banks.

Good luck!

tinotinotino

This happened to a friend of mine after we graduated last summer. He managed to sort it out by ringing up and stating how ridiculous it was. Give it a go, no harm in calling them and asking for some extra time and I'm sure if you threaten to leave them after they will back down. The idea of catching customers in for student accounts etc. is with the view that you (potentially) stay with them for life as it is a hassle to change. Best of luck.

MrsManda

Quick point, but I find popping in the branch and discussing it with someone face to face much more useful than trying to deal with these situations over the phone - less chance for them to just say no.

Vans_101

Thanks for the help. Gave them a call expecting the worse but it was all sorted out in a few mins. They have renewed it for another year. Bit of a relief!

Valley's_girl

Well done that must be a relief.
best wishes
ally