Banks & Unemployment!!!!!!!

redwineguzzler

Evening all,

Hope there's someone out there that know's a bit about overdrafts and not working!

My son who is 20, lost his job 3 weeks ago, he does not live at home, so he has had to go to the benefits ofice and sign on.

He will now have his rent paid and receives £52 per fortnight in Job seekers allowance.

The problem is, he is £380 overdrawn at the bank, he has phoned the 0845 number and asked if they could freeze the account whilst he is unemployed. 'SORRY CANT HELP' is basically what they have said!

Surely there must be someway of freezing the account and paying off a small sum each month, rather than the bank keep adding on more money each month, it's madness, he'll never catch up!

Thanks
XX

Lokolo

As with the other poster, its best to go into the bank.

What is his overdraft limit?

Has he worked out what he needs the JSA for? (i.e. does he need all of it?)

vaporate

When I was on JSA I used the JSA to reduce the OD debt, then push the limit down every month.

It's a shame that he hasn't got a graduate account as it would be interest free.

Why deosn't he get the JSA paid into a seperate account from his other account where he is overdrawn? He is legally entitled to do that.

From what I can remember, the bank can only do so much with people on benefits.

redwineguzzler

vaporate wrote: »

When I was on JSA I used the JSA to reduce the OD debt, then push the limit down every month.

It's a shame that he hasn't got a graduate account as it would be interest free.

Why deosn't he get the JSA paid into a seperate account from his other account where he is overdrawn? He is legally entitled to do that.

From what I can remember, the bank can only do so much with people on benefits.

He actually had the foresight to open another account with a different bank - thank goodness, I have told him he needs to go into the branch tomorrow and talk to somebody in there. It's not even that he has refused to pay it off, he's willing to offer something per month,just not a lot. He has to contibute towards the usual utilities and buy all his food etc, not easy on £26 per week.
Thanks
XX

tonypop

At least he gets his rent and council tax paid for him!!:T

willo65

He will probably find that all he needs to cover is interest and if it is 20% then will cost him about £6 per month to maintain o/d unless he is over his limit.

ramirezhenry55

I think the best way is to go to the bank physically to settle this. I am sure there is an amicable and legal way to settle this. Can he not stay with you guys so he can save a little since food and housing would be free in his parents house.

Mr.Mulla

My advice is the same, go to the bank in person and talk to the manager so he could settle this problem.

catflea

Agreed. Which bank is it btw?