Has your overdraft been cancelled?

savage319

just after some advise really as natwest who my parents have been banking with all there lifes have revoked there 18k over draft telling them to pay in full in 7 days but due to out standing monies owed from big company's which is in excess of 30k, they have told them, they no longer want them to bank with them, they then asked for the full 18k addressed to my dad, all though the business is all my mothers name, they did default a few times as 2 yrs ago my dad had a heart attack and mum struggled abit, also at this time the credit limits on all my dads accounts were reduced to next to nothing once paid, which seems reasonable from there point of view as he becomes a liability to them.

The bank wont let them remortgage even tho they only owe 12k on it which again is the natwest, which seems a bit harsh, they have now been waiting for the natwest to get back to them which will be December the 7th so about 2-3 months so far and are trying to tell them there will be an early repayment fee for settling early, and the 18k could end up being 40k, it seems to me that the natwest local branch in bristol will not or do not know what they are doing, or trying not to help any ideas of who to contact would be great. as this seems to be going round in circles.

Princess2007_2

I hope you will get this message, as you did send this a few weeks ago.

Please go to the website !!!!!!!!!!!!!!!!.org

You will find all of the information you need to help you.

Happy New Year

Padtone

I had a business overdraft with my bank and without warning I got a call saying that they were going to take it away from me and they made me take out a business loan to cover it. But they made me take out a personal guarantee on the loan or I couldn't have it! I had no choice but to do as they asked and guaranteed the loan personally. However my company went bust and now the bank are coming after me for the remaining part of the loan.
What I want to know is this. If they made me take the loan out to cover the overdraft without much choice or they would come after me for the overdraft, is it legal that they made me guarantee the loan?

BillJones

Padtone wrote: »

What I want to know is this. If they made me take the loan out to cover the overdraft without much choice or they would come after me for the overdraft, is it legal that they made me guarantee the loan?

Yes, they can insist on all sorts of terms on a new loan. If you were not happpy with them you were free to raise the money yourself from other sources.

Overdrafts are generally able to be recalled at short notice, so should not be used for long-term lending.

Blueskies2014

I am very upset and stressed. I was told by Step Change to advise all of my creditors I am in financial difficulty. I didn't realise that by advising my bank that they would immediately withdraw my overdraft facility, which has happened.

I have only just got a part-time job temp job through an agency and I won't get paid for another week. I had to get a bus today there, although I normally cycle, due to the driving wind and rain. I went to the cash machine to get some money and I couldn't. I had to refund a sandwich I just bought in Tesco to get the money for the bus fare.

I won't get paid for another week and I realise that my last payment of Jobseekers Allowance has been swallowed up by my bank now that my arranged overdraft facility has been removed. It's left me with no money whatsoever!

I had an arranged overdraft facility of £2500 with my bank, Santander. I had used £2400 of that originally but now by balance is approximately £2335- because the final Jobseekers Allowance payment I had of £65 has been swallowed up by my now unauthorised overdraft. My overdraft allowance is now zero, they have stopped me using my card, my cheque book and cancelled my direct debit to my phone company and my standing orders to pay my rent arrears and other creditors.

I do have another unused bank account, which I will use now, but I can't get back my JSA payment and I have no money at all to live on for another week till I get my first payment from the temp agency I'm working for. Does anyone have any advice.

I will now have to cycle to work every day. My financial problems came about after I got made redundant 2 years ago and I was already in debt. I have just done on and off temp work ever since, which has never been enough to pay the debt I owe. I had to move from my flat last year due to not being able to pay the rent. I have £18K of debt altogether over credit cards and 2 overdrafts.

If I just move my account elsewhere and am with Step Change, and close my Santander bank account, will I stop getting charges?

bambos

I had a Nationwide Flex account.
Overdraft reduced from £1050 to £650.
Nationwide agreed a payment plan of £40 PCM
I defaulted due to the interest charges which they never told me about.
I renegotiated my payment plan but because I did this they have removed my overdraft facility and I have to pay off everything with the new payment plan of £45 PCM.
I pay £12 PCM interest
I have now moved all my dd's, s.o's and wages to a new co-op account with no o/d facility and am making the regular monthly payments into my nationwide account.
I feel in control of my finances now and much more positive

emma809

MSE_Guy wrote: »

We're hearing worrying stories of banks closing people's overdrafts, while they're overdrawn, without warning and sometimes adding charges because they're then in the red.

We want to know how widespread this is, so please report your story if it's happened to you.


Please include:

• Current account provider
• Overdraft limit before change
• Overdraft balance at time
• New overdraft limit after change
• Whether this happened at an official overdraft review
• Any charges
• Whether you were notified

See our news story for more information and the news story discussion thread to debate the issue.

Looking for advice call from Halifax held current account for 20 years overdraft 3000 pounds no problems ever pay fees withdrawing it in 60 days closing account! Can anyone advise on if I will be allowed to repay over how long and will they add charges not great timing just had baby very worried!! Said sending letter

Aquamania

emma809 wrote: »

Looking for advice call from Halifax held current account for 20 years overdraft 3000 pounds no problems ever pay fees withdrawing it in 60 days closing account! Can anyone advise on if I will be allowed to repay over how long and will they add charges not great timing just had baby very worried!! Said sending letter

Overdrafts always can be called in at any time (perhaps on 28 days notice, but you've been given 60 days)

If they want to close the account, then I'm sure they want their money back.

First off, if this is all a surprise to you and you are as good a customer as you say, I would suggest you contact the bank to ask why they are closing down a good, long standing customer's account.

If the response is not that revealing, then have a look at your credit reference files.

If that all looks ok, then open an account elsewhere and request an overdraft with them - you can then use that to repay the existing overdraft at Halifax.

But you are aware that overdrafts are not really intended for long term borowing arn't you? If this is what you are using it for, then a loan would be probably better for you (assuming you can't get any introductory 0% money transfer deals from credit cards, etc)

Mr_Splat

Just to let people know who may be interested that what can only be attributed by the co-op's current financial mess that they cancelled my overdraft on my student account without notice. I only realised 3 weeks after it had supposedly been cancelled. I have had to pay a deposit on a house for university next year, I paid to go and visit a relative in France and I'm currently going through the motions of taking a car dealer to a small claims court, this left me thinking I would just have to dip into my overdraft until I get paid at the end of the month however I then found out to my detriment that my overdraft limit has been reduced from £1400 to nil, without myself being notified.

Current account provider: Cooperative Bank
Overdraft limit before change: £1400
Overdraft balance at time: 0, in credit
New overdraft limit after change: NIL
Whether this happened at an official overdraft review: No, I haven't given them reason to perform an overdraft review
Any charges: No
Whether you were notified: No

BillJones

If you have not been informed, what makes you believe that it's been cancelled?