Help, HALIFAX bank cancelled my overdraft!

Heanz

Hello Everyone, im new to this and i hope somebody can help me!

I have a student account of £2500 from halifax. This month i went in to find out obout my overdraft charges (to cut a long story short i keep being charged for spending money that says is avalible in my account but the money was not there because it had not been processed by the shops). These charges amout to £490 from last december and they sent me a latter saying i can controll my money by using online banking but they would not do anything about it. I am in my 3rd year of uni on a 4 year course. My overdraft was started the summer before i came to uni.
I accepted this but then received a letter saying:

Dear Miss
Renewing your overdraft
Your current overdraft limit of £2,500 will end on 15th November 2009 .
If you would like to renew your overdraft, you can apply on 08457 20 30 40 or at your local branch.
Before we can consider renewing your overdraft, you will need to have made and continue to make regular payments into your account, such as a Student Loan or parental contributions.
As you qualify under our Students Current Account, any arranged overdraft limit we agree with you up to £3,000 will be interest free (typical 0% EAR* variable)
Thank you for banking with the Halifax and we look forward to helping you.
Yours sincerely



then a following letter saying:

Dear Miss
Overdraft Application
Thank you for your recent application for an overdraft of £2,500.
Unfortunately, having considered your application, it will not be possible to offer you an overdraft at this time.
This decision has been based on a review of your finances . If you want to discuss this decision, please contact your local branch . If your circumstances change and you would still like an overdraft we will be happy to review it at any time. You can apply online at halifax online over the phone on 08457 203040 or at any branch. We can usually give you an instant decision.
I am sorry we cannot give you an overdraft this time, but I do hope we can help you in the future.
Yours sincerely



this account is the only account i use, including all my loan, wages (around £150pw and parental contributions. I do go over my overdraft (the reason why above) but never for more than £10 and always pay my ank charges. If they do demand it back how will they expect payments? I have alot of outgoings and struggle as it is with rent, phone bill, travel, uni stuff etc and have no other savings... has anyone else been in this situation? There is absulutly no way i can pay it back in a lump sum...

please help! :mad:

Mankysteve

Give em a ring and tell them that you want your student overdraft overwise you'll be moveing over to natwest or any other bank that offers free student overdrafts. If your earning, getting help from your parents and a student loan you shouldn't be bounceing off your overdraft limit realy . I susgest looking posting an SOA or at least looking at your budget http://forums.moneysavingexpert.com/showthread.html?t=107280, I survive on £125pw + Basic loan and pay my own fees with no parently support and I don't exactly rough it I mange to buy the supermarket best, decent ales etc.

MrsManda

Go into a branch and check they realise you're on a 4 year course and not being moved to a graduate account.

Lokolo

Although I suspect they are thinking you have graduated as above, but.....

I'm sorry to the one to tell you but I highly doubt you will get the overdraft back.

If you continually break the rules of the overdraft (by going over it), then they will stop the overdraft and demand repayment.

If you are unable to pay they may put you on a repayment plan or get debt collectors to pick up the debt.

I am sorry but I have no sympathy for you if you cannot work out that you cannot spend whats not in your account.

(to cut a long story short i keep being charged for spending money that says is avalible in my account but the money was not there because it had not been processed by the shops).

You should always keep an eye on your account to see what you have spent. It does not take much effort to write down what you have spent and has not come out of your account.

daviduk1976

Just thought i'd let you know....they MAY offer to give the overdraft back, BUT:

1. As they have asked for it back, they will remove the overdraft in agreed payments ie £200 back a month, they offered it to me (i had od of £3000)

2. It will go on your credit record as AP on each month....arrangement to pay, is it worth it on your credit score? I was lucky enough to pay the lot back....left me in poop for the month but managed.

3. I changed my bank.

David

Lokolo

daviduk1976 wrote: »

Just thought i'd let you know....they MAY offer to give the overdraft back, BUT:

1. As they have asked for it back, they will remove the overdraft in agreed payments ie £200 back a month, they offered it to me (i had od of £3000)

2. It will go on your credit record as AP on each month....arrangement to pay, is it worth it on your credit score? I was lucky enough to pay the lot back....left me in poop for the month but managed.

3. I changed my bank.

David

BTW this is what a repayment plan is

Akenyon03

Im currently on my 4th year at uni (3rd year of current course), i received a letter from natwest in the summer saying they were changing my account to a graduate account so i went it and they just extended it for another year with no problems, just had to show them a copy of my Student loan forms.
During term time i work 8 hours a week (£190 a month, ish), i dont get a grant and my student loan gets paid into my lloyds account which is instantly transfered to my parents because there is no way i can afford to go into that, it just about covers rent as it is.

I am always in my overdraft whilst at uni simply because of all the materials i have to purchase for my course, and the fact i live by myself (Shopping, electric etc). Every summer since i started uni i have payed my overdraft off in full.

My friend recieved a phone call from natwest the other day saying that she had to pay £600 into her natwest overdraft or they would start charging her interest and cancel her overdraft, her loan hasnt come through yet due to a complication on her course and she is really struggling for money.

All i can say is ring them or go into your branch and talk to them. Your a student with a student overdraft, what more do they need to know really?

annie-c

Best to go into a branch on or close to a university/college, even if your account is held on a high street branch as they are generally much more sympathetic to students. Good luck xx

robin_banks

All overdrafts are repayable on demand, it seems you've regularly breached your limit else Halifax would not have taken this extreme measure.

Tbh I doubt very much they've done this out of the blue and would expect that you were sent numerous letters that you chose not to action. Yuo can't have not known your account was in a mess. You can bank online and get alerts via a text message as to your balance so you have no excuse that you did not know. You really dont.

No sympathy here I'm afraid.

You may also struggle to open another account.

Oldernotwiser

That's a lot of money to get through when you earn £150 per week on top of your student finance and parental help! This may be the wake up call that you need!

Blackberrypie_3

I had exactly the same situation last week with exactly the same letters.

I recieved the one about renewing my (£2000) overdraft and cheerfully called them up thinking there wouldn't be any problems. When they told me they would not be renewing it due to recent charges I have to admit, I cried.

I am lucky enough (or not, depending on how you look at it!) to be working 2 jobs while also studying full time and I also get the full Student Loans entitlement as I am over 25 (where it is assessed on your own income, not your parents). Although it is incredibly stressful it may just mean that I am able to give the bank suitable repayments (which we haven't yet agreed. I also have a girlfriend who is really good with money and saving (she is in the same year of Uni but has no overdraft, loan repayments etc.)

The best advice I can give is to go and see the financial advice people at your Uni - I did and they really put my mind at rest. They gave me some really good advice, gave me some forms to help me work out what I could afford to give the bank in terms of repayments. You may also want to ask them about something called the Access to Learning fund which is a grant they can give you if you are in real trouble and have had "unexpected financial hardship" - they said a case like this where the bank calls back the overdraft would be a perfect example.

The most important thing is to not stress out too much. There are always ways of dealing with it and it means you have a double push to get yourself out of debt.