Natwest student overdraft-be careful

meowmeow83

In January Natwest closed my account with no prior warning. I was unaware until i received a letter informing me so, the machine had also swallowed my card a few days prior and my online service became unavailable. i was informed over the telephone that due to me graduating several years earlier i was no longer entitled to the graduate overdraft, where as i had only graduated 4 months prior and should actually have the interest free overdraft gradually reducedover a 2 year period.
i had a student account with them for years, last september i graduated, when first investigating why my account had been closed i was informed that they had the wrong graduation date for me, and that if i went into branch with proof of graduation etc it would be fine (which i did-several times).
each time i went into branch i was assured it was a mistake on their part and that there was no need to panic, my account would be re-activated the following day, no need to cancel direct debits etc. i had just been paid so they took all my months wage (about £1500) towards what was 'owed' on the account for the student overdraft that i had not yet paid off.
i can't describe the stress this caused, i had absolutely no money for a whole month, couldn't pay my rent, had missed payments on direct debits, had to borrow off family and friends and even lost my no claims on my car due to my insurance company sacking me off due to 3 consecutive failed direct debits (all that month!)
the staff in branch were very helpful but couldn't really do anything as they said my account was being investigated for fraudulant activity. They even made a lsit with me of all my out of pocket expenses that they felt they owed me, such as bank charges and time of work.
This was in January! all i've heard from them is a letter telling me i owe them the remainder of the overdraft, no explanation, no apology and definately no reimbursement to me.
needless to say i am banking elsewhere, luckily i had a bank acccount from whe i was a kid that was still open even though i don't use it, cus with my credit rating i bet i wouldn't have even been able to open an account elsewhere.
I really don't know if theres anything else i can do or if i should complain or if they're entitled to do this without explaining?

thanks x

System

Thanks for the warning, currently coming up to having had my grad overdraft a year so will watch out. Went to reduce it but they advised me to leave it as i would get charged less in interest than i would in charges if i needed to go into it.

meowmeow83

although, very strangely, i looked at my experian credit report tonight and according to that my account with Natwest is satisfactory and settled, which i can't really understand!?? x

rb10

There's something missing here. Natwest don't close your account when you graduate, they convert it into a Graduate Account. And then, some years later, into a normal account.

Is there something you're keeping from us? Had you been constantly over your overdraft limit? Or broken the T&Cs in some other way?

never-in-doubt

If, what the OP is saying is true, then this needs reporting to the FOS asap as they have clear grounds for complaint - also assuming natpest have updated the account as settled this would assume they have accepted the account as closed.

Maybe a good idea to get a new account, report Natpest to the FOS and claim what you're owed then dump them..... although I still think there must be more to this than meets the eye - they don't just close accounts without warning and usually you have to break several of the account terms for them to take such action. Has the OP possibly moved addresses and not informed the bank? Was the account registered at a parents address?

Something is amiss, however bottom line is you should complain to the FOS and on their complaint form where it asks if you've had a final response, you should tick "yes" otherwise they pass you back to the bank which would be a waste of time, clearly.

Good Luck!

meowmeow83

they did convert it to a graduate account but then closed it shortly after, when the lad working in branch told me i was being investigated for fraudulant activity (when he told me this he told me he wasn't really supposed to tell me but he felt really sorry for me and believed me to be genuine) he said that it was probably from moving around a lot as a student, i actually only moved once, at which point i changed my address, and then when i moved back to my mums, which is where i am now, again i changed my address back with them and kept my details up to date.
yes i was fully overdrawn most of the time but i don't think i'd be particularly different from any other student, and i always had my wages going in, even when i was a student and my wage was very small, but then immediately on graduating i had already secured a post and my wages went straight in until all this happened.
seems really silly that i use the account for 6 years whilst studying and permanently being skint, then as soon as i start earning and putting back in they do this to me.
if there is more than meets the eye then i'm not aware what it is x

meowmeow83

and when i say overdrawn i do mean within my overdraft limit x

never-in-doubt

Ok, so follow advice above and report to the FOS asap.