Banks cancelling overdrafts

Lokolo

Kavanne wrote: »

Justamum, pop on over to the DFW to see how they do it

I found the thread for you: http://forums.moneysavingexpert.com/showthread.html?t=1593987

Just to bump this bit as it can help anyone that really is struggling, pop along, theres loads of helpful (more than me... ) people there who can help cut down on spending.

Turkey_Machine

Lokolo wrote: »

Bah my Maths exam isn't til next week

Have you tried getting a job at uni? Thats what I have and get paid £7.31 an hour for one, and £7.88 for another. Its pretty good.

I was lucky when it came for me trying to find a placement job, I only went to one interview and got that job, they paid me partial expenses but I can imagine a lot of people don't so it can get quite costly.

Do you keep a budget planner? What I tend to do is get an A4, half it, then half it again so I get 4 bits of paper, and write down what the expenses and income I am expecting, then work out where I could cut down (by time I've filled up one paper its all a mess so I then transfer everything onto next bit of paper), it helps me then I know how much I can spend in other areas. Like before Easter I didn't go out for 3 weeks because I had no money, but this week I've been out twice

Oh how I wish I was as lucky as you.

Every job I've had at uni has been temporary (1 or 2 days, or 1 or 2 weeks at a time) - nothing even remotely full-time. I must have had about 20-30 interviews for things in the past 3 years, and they've not offered me anything AT ALL! I'm lucky as it is to get the work I do over the holidays as my mum works for Healthcare Homes in Lowestoft and I help her catch up with stuff - takes me about a week in total if there's a lot of it (there was around Easter cos it's end of year accounts). I long for the social life of my friends, but I can't afford to go out clubbing / drinking even once a week, so the only sociality I get is chatting to friends on MSN and racing the suckers online! :eek:

I'm not the most frugal of people, I spend far more than I should and I know I should cut down. I have a lot going on in my life at the moment, but money at the moment isn't one of those worries. Or at least it won't be if the bank doesn't screw me over with the overdraft *again*.

As an aside, I thought Building Societies were in the best interests of the customers. Why is it Nationwide can be so helpful to some, and so royally spank others?

sluggy1967

Grrrrrrrrrr - that's me done, I can't look at this thread any more. Some people's sanctimonious lectures are making my blood boil. I love my husband and son to bits, but how I wish I was a student again like Lokolo, how easier it all was then, everything was so black & white, & I could live off beans on toast for a whole term if I needed to, cos I didnt have to think about anyone but myself....

Justamum - you are so right, we consider ourselves lucky my husband is in a wheelchair 'cos it means that at least that's 1 less person to buy shoes for (my husband's current pair will never wear out now he can't walk), we only buy clothes for our son cos being 6 he cant live in the same clothes because selfishly he keeps on growing! I hate the fact that everyone can tell I wear the same clothes no matter what the season is, they just get rotated (T shirt in the summer, stick a jumper over it in the winter until it literally falls apart & then get another as cheap as poss)

MLisking

Do you know what the worst thing is? All some people are interested in is telling others how 'they shouldn't have got into debt in the first place'.

Whatever mistakes people have made in the past, thats the past. Rather than lecturing, maybe some just shouldn't get involved, because debt is debt, and its horrible. People are here to tell their story - and whatever anyone thinks, informing someone who has a £3000 o/d they have 30 days to clear it is downright disgusting, unfair, ridiculous behaviour.

And banks? They're pigs. No question.

Right I'll get off my soapbox now hehe

Turkey_Machine

Tone_stew06 wrote: »

So glad someone has raised this, My brother is in dire straights as he is self employed and work has dried up. Eventually this week he got his charges from his bank refunded under the hardship scheme, (he still thought it was on hold)

However he has another account that he used when he was an employee, since he has not used this account for 2 years, Barclays have said he has to pay £80 a month to clear the overdraft, its currently about £1200 overdrawn, otherwise they will close the account, he explained the situation and that his priority was his mortgage, (currently behind) Barclays did not acccept his £10 a month. They now have said if he refuses to pay £80 they will take him to court and revoke the overdraft and he will be responsible for further charges. They are also calling him most days hastling him!!

Can Anyone help with some advice. I have sorted and helped him as much as i can with refunding of charges for bank charges, CC and mortgage fees. But am stuck for advice on this. Many thanks, apologies for the LONG message??

Don't apologise for the long message! In this case, more is better, I think.

If he has a solicitor, get him to get in touch with them and ask for some free advice on what to do. If not, Citizens Advice Bureau should be able to help him out.

£80 a month Barclays are demanding gives him 15 months to pay off the overdraft, which in the banks eye may seem reasonable. But he's offering to pay £10 a month, which would put the long-term repayment at 10 years, which is a long time for both client and bank.

EDIT: Should really read my own gods-damned advice before spouting to consider a loan.

olly300

Lokolo wrote: »

When things were good, could you not have cut backed and saved? You could be using those savings right now to help you in tough times.

Unfortunately people's lives don't work like that.

Added to the fact many people until they come to this site naively believe that if the bank offers them a large overdraft it's because the bank know they can pay it back with ease. They haven't been brought up not to trust the bank.

It's only through experience do they learn the hard way that banks are there to screw them.

ahai1

I am sorry I don't know how to reply to more than one post so I am going to reply to a few at once without quotes as I don't know how to do it.

MLisking I have listened to hard luck stories all my life and frankly in a large number of cases people bring it on themselves by either not managing their money properly or not seeking financial advise in the first place. Some people let the whole thing get out of control and I don't see why the bnks should be held responible for those people if they have not managed their money properly.

If people are in dire straights then they should talk to the bank or see a advise agency rather then dipping into the overdraft.

Olly300 just because the customer believes something it does not make it right. If people were using their overdrafts in the way it was meant to be then none of this would have happened.

Lokolo you are right people should have saved in the good times.

As ShelfStacker should the money can be demanded by the bank anytime.

olly300

ahai1 wrote: »

If people are in dire straights then they should talk to the bank or see a advise agency rather then dipping into the overdraft.

Olly300 just because the customer believes something it does not make it right. If people were using their overdrafts in the way it was meant to be then none of this would have happened.

To put it bluntly many people in the UK are financially naive.

I was shocked to find some of my highly intelligent and educated friends' couldn't understand the basic fact that financial institutions are businesses and therefore their "advice" should be taken with a strong pinch of salt.

Also due to people's pride (not my friends I add) they don't go and ask/look for advice until they are in a complete mess.

Plus you need to add on to the fact that if you don't have money living is simply a grind.

I have been shunned by people for pointing out things like - "your overdraft can be cancelled at any time" and "don't have your credit card or savings with the bank you have an overdraft with" before that person has got in a worse mess.

BTW I was luckily enough to brought up by parents who told me this from a young age due to their own experiences, and have older siblings who also experienced this but not in the painful way as other posters.

And not everyone experienced the good times as portrayed in the media. In fact I am in a better financial situation now then I was two years ago simply because my income has increased over that time.

olly300

lutmut wrote: »

Hi there,
I literally just had my overdraft cancelled today by the Co-op Bank, without prior notice. My overdraft was £300.00 and I had reached £255.00. I went to draw out some money this morning (payday)!!
The machine kept my card and after some questioning I was told that they had changed my account from a Priviledge Premier to a basic account!! Nothing received in writing and no phone calls.So this has left me very short for the month as I now have no overdraft whatsoever.......

Not a happy bunny.........

The FSA regulates "The Unfair Terms in Consumer Contracts Regulations 1999" for the financial industry.

As you have had no notice I suggest you ring Co-op up tomorrow, state you want to make a "Formal Complaint", point this out to them stating you will put in a complaint to them about their practices as to you it seems they have clearly breached this act and tell them your issue.

Make a note of who you are speaking to and the time you have made the phone call.

If you get nervous on the phone make a note of the points you want to say before you call them.

If they don't respond to your complaint then contact the FSA on 0300 500 5000.

ahai1

I am also better off than a few years ago as well.

If we were to make allowances for people who were not capable of understanding the basics then the country would go down the toilets worser than it is now.

Personally whilst I do feel sorry for the people involved for the greater good the banks have to take away their overdraft to avoid there been a worser suiation then there currently is.

If I was working in a bank I would have no moral qualms about cancelling people's overdrafts if I felt they had been abused.

Some people feel they have been hard done by but the reality is that the banks have been too generous with them and it is now time to take back the money.

As I have said Lokolo is right about savings.