Bank screwed up

charlie2120

Hello everyone, could someone give me some advice as how i deal with this problem.sorry if i ramble,

I have a Loan with natwest, And an authorised overdraft of 800. I recently needed a new washing machine and as interest rates have dropped since i took out my original loan asked to refinace to make this purchase. I only wanted an extra 500, but was told they could only do it in in increments of 1000, so i agreed. the paperwork was done and signed, i was told the Loan was approved, (i have the paperwork that says so), and the money would be in my bank the next day. As i was in credit, and have never had a loan refused or a DD gone unpaid, i went straight away and bought the washing machine, and use the balance to pay an outstanding bill.

3 weeks later i get a raft of unpaid DD letters. I go to the bank to see whats going on.

It turns out, 3 days before i applied for the loan i had gone over my overdraft limit by 21pounds. The next day money had gone in which cleared the overdraft fully and took the account back into credit, but by then for some reason they had sent my account to collections. With that happening the loan should not have been approved so the money didnt go into my account as i was told it would, and like an idiot i never checked. With the bank charges and the money i spent on the washing machine and bill, my account was almost 1300 OD. If I had thought the money wasnt going to go in the bank i would have found some other way of financing the washing machine.

I have managed to get my account almost back into credit, most of my unpaid DD's have been paid, but that will only last until tomorrow when my rent comes out. In effect i have spent nearly a 1000 they told me i had and didnt.

They have offered me a consolidation loan, at a much higher repayment and higher interest rate, im loath to take it because this is really down to their muck up, and if i accept that they will remove my overdraft facility, and i know i shouldnt but i rely on that as money does not get paid in on regular dates.

What can I do? its because of their muck up im in this mess, my bills will start coming out again in a couple of weeks and what goes in wont cover them. I have a couple of peices of cherished jewelery iv even been contemplating selling.

Any Advice please?

mluton

Where did the bank screw up ?

ILW

You went out and spent a load of money that was not in your account, I cannot see that that is the banks fault. It would be up to you to check the funds were available.

Rafter

If you have the paperwork and are correct that you were told the money would be in your account then you certainly have grounds for complaint.

If what you say above is true and this is an isolated incident, putting your account into collections for a 1 day overdraft infraction is also unfair.

You need to complain, talk to a real person and get this sorted - unfortunately the computer has now taken a dislike to you and junior staff won't be able to to anything about it.

Good luck

R.

charlie2120

I know i was wrong for not checking the funds went into the account first. But the woman doing the refinancing specifically told me the loan had been approved and the money would be there the next day. What reason should I have had to doubt that what she told me was wrong.

If my account had been in collections then surely at best the loan would only have come up as something along the lines of further approval required. The annoying thing is she asked if i would prefer a refinance or increase my overdraft but then said a loan would be better as interest rates had dropped so much since i took the original loan out 2 years ago.

I signed the paperwork in the branch, and have my own copy, and it clearly says approved.

I checked my statements and my overdraft went 21-43 over the limit. but the next day enough money went in to clear the overdraft completely and put the account back into the black. Collections initially said my loan payment wasnt made in October, but my statement shows it came out on the correct date and my account was still in credit afterward, thats when they said it was due to going over my overdraft limit.

I have banked with natwest for years, and I admit i regularly go into my overdraft facility, but despite their attempts to regularly raise the limit i have refused each time and kept it at the level it is at now.

There is no way I would have gone out and spent the money if i had any idea the funds wouldnt be there. Apart from my loan i have no other debt and have not even had a DD bounce in the past, which is why the whole thing is worrying me silly now.

Who is best to complain too? or would i be better going to CAB and asking them for help with this. Im doing my best to try and sort this out but i really dont want a consolidation loan at high rates.