Reclaiming on accounts with student overdrafts? Is it dangerous?

tb89

Hi all,

I'm about to send letters off to Natwest & Lloyds (the worst of all), to attempt to reclaim my bank charges. I hold a student account with both of them, and am overdrawn (though within my limit) at £1400 and £1500 respectively.

I'm apprehensive after reading that many accounts have been closed down after successfully reclaiming charges. Is it possible that if they do agree to pay the charges back, they could close my accounts and demand immediate repayment of the amount overdrawn?

Any feedback would be much appreciated!

Thanks

natweststaffmember

tb89 wrote: »

Hi all,

I'm about to send letters off to Natwest & Lloyds (the worst of all), to attempt to reclaim my bank charges. I hold a student account with both of them, and am overdrawn (though within my limit) at £1400 and £1500 respectively.

I'm apprehensive after reading that many accounts have been closed down after successfully reclaiming charges. Is it possible that if they do agree to pay the charges back, they could close my accounts and demand immediate repayment of the amount overdrawn?

Any feedback would be much appreciated!

Thanks

It's unlikely they will close your account. Have you had a lot of charges from both banks?

tb89

I've had both for quite a while (around 5 years) and probably around £1000-1500 of charges between the two banks, although I'm waiting for the actual list of charges from both banks.

Does account closing typically happen at a certain £ amount of charges?

natweststaffmember

tb89 wrote: »

I've had both for quite a while (around 5 years) and probably around £1000-1500 of charges between the two banks, although I'm waiting for the actual list of charges from both banks.

Does account closing typically happen at a certain £ amount of charges?

Banks cannot close your account under the FSA waiver on bank charges simply because you are reclaiming the charges. As you are within the overdraft limit there is no real reason for them to close your account.

tb89

Thanks for your help! Will push ahead and see how it goes.

Davewils

One question tho, (if they find out about each other's overdrafts (if that's possible)) No bank that i know of would give you a student account with an overdraft facility if you already have one with another bank.

How did you manage to get two? If you lied and told them you didnt have an overdraft then if they found out they could quiet easily close both your accounts.

natweststaffmember

Davewils wrote: »

One question tho, (if they find out about each other's overdrafts (if that's possible)) No bank that i know of would give you a student account with an overdraft facility if you already have one with another bank.

How did you manage to get two? If you lied and told them you didnt have an overdraft then if they found out they could quiet easily close both your accounts.

You don't necessarily tell the other bank that you have a student account. It is very common, to be honest