Any advice?

TWINKLE

I would really appreciate any advice that comes my way. Due to a vicious circle of current account fees being applied to my overdrawn account, I have put forward several suggestions to my bank of 22 years of ways I could get out of/reduce this amount. They have basically said that the direct debits will soon start to be refused. I feel caught in a situation now that I have no control over and on Saturday my salary is due to be paid in - this will be eaten up and put me in an even further awkward position. As I explained to my bank - my husband is phasing back in to work following long-term sickness and will be full-time again in February 2010. How are we supposed to get back on our feet?

Tixy

Hi Twinkle - this may be a little late for this saturday but do you have any other current account you could ask your employers to pay your wages in to?

If you haven;t then at least for future payments I'd suggest you set up a new basic bank account with another bank that you do not owe any money to. Arrange to have future wages paid into this account and set up any DDs for your priority costs (rent utilities ctax etc).

Have you started a bank charges reclaim yet?

If you can't get this weeks wages paid into a different account then you may need to look into a 'notice of right or appropriation' (i think thats is name). This is where you write a letter to the bank telling them that you are paying in X amount wages and that this is to be used to pay a b and c direct debits (such as rent, mortgage, council tax, etc). It means they can't take the money to repay their own charges of the overdraft.

If you get a new account set up soon then I'd suggest you write with a repayment plan to repay a set amount each month, then you can set up a standing order for that amount from your new account to the overdrawn one (template letters are available when you get to this stage).

TWINKLE

Thanks for this advice Tixy. The bank doesn't seem to be very accommodating considering how long I have been wiht them. I haven't started a bank charges reclaim as yet, but would now think about it. How do I go about this? I will go first and get my salary paid into my husband's account for this week - if it's not too late.

Tixy

For the bank charges look at the step by step guides at the top of this page http://forums.moneysavingexpert.com/forumdisplay.html?f=102

I know what you mean about the bank - I have banked with HSBC for 15years and I'm sure my loyalty counts for nothing with them.

TWINKLE

Just checked - I am too later to get my salary transferred this month, so will have to write to them about using my salary to pay my direct debits and not their fees.

yellowduck_2

Hate to be negative but I learnt the hard way that banks are not your friends and do not care how long you have been with them, as soon as you start to have difficulties they will become your enemy. They are businesses when all is said and done despite the cosy image they like to potray via adverts. Get a basic bank account and forget about loyallty, save that for the people in your llife who really care about you. Good luck with everything

Tixy

http://forums.moneysavingexpert.com/showthread.html?p=21237241This might help with the letter you need to write

or this
http://forums.moneysavingexpert.com/showpost.html?p=18920559&postcount=1180

TWINKLE

Thanks Yellow Duck - that is so true. I do like to think that there are big corporations out there who are as loyal to their customers as we are to them. However, I think the penny has dropped and the only loyal people out there are the ones that matter to us. Here goes with a letter outlining the notice of appropriation. They will love this!:eek:

TWINKLE

Thanks for your help Tixy. I have contacted Halifax and they are sending me an application form for a basic bank account.

Just received a phone call from my bank there (different person) who was more accommodating and said that they would look at my account with a view to letting me open a separate basic bank account and then pay my overdraft off in instalments. They are phoning me back tomorrow after they check this out with someone else! I explained that a concern of mine was the fact that my salary goes in at the weekend and my mortgage and dds are due out next week - this would be eaten up by the overdraft. I'm finding it all a bit stressful to be honest and feel like I have done something wrong.

yellowduck_2

Twinkle you have not done anything wrong, I used to feel like that but life can be a bumpy ride and we need to cut ourselves some slack.......be as forgiving to yourself as you would be to a friend if they told you they had money worries.

TWINKLE

Thanks - I really appreciate this yellowduck. I think my bank has been controlling my income and making a lot of money out of me for years and this needs to stop!