Abbey Revocation of Overdraft - Advice!

paulmcerlean

scott_lithgows wrote: »

Lend her the cash as long as she agrees to shift banks.

this situation is not unique to Santander - all high street lenders will act this way if accounts are not funded properly in an overdraft scenario.

scott_lithgows

paulmcerlean wrote: »

this situation is not unique to Santander - all high street lenders will act this way if accounts are not funded properly in an overdraft scenario.

Dont get mad,get even !

katyboo123

HouseHuntr wrote: »

If you already know they won't talk to you without consent them mention it. People are not here to guess what you mean. Many people will assume they can discuss anothers account, hence mentioning it.
There was no sarcasm, it's straight talking!

If she was very vigilant in handling her finances you wouldn't be on a public forum on her behalf would you.

Dear me, sadder and sadder...

I just wanted to know the best way to approach Abbey, thankfully for me and my Sister, I managed to work it out with Abbey direct, without her credit profile being tainted (as confirmed by Abbey - to be checked though!).

But thanks for the advice, support, warmth and understanding.

katyboo123

premierfella wrote: »

Possibly this should be HAD superb credit rating, depending on whether Santander are treating this as a debt management plan or not (the reason I raise this possibility is the fact that you mention that Santander have suspended all interest and charges).

I did check with Abbey and the girl said it would not have an effect on her credit rating. We all get our credit files monthly, so I guess the best thing will be to keep a close eye on this?

Thanks so much for your help xx

katyboo123

paulmcerlean wrote: »

this situation is not unique to Santander - all high street lenders will act this way if accounts are not funded properly in an overdraft scenario.

I know and when I mentioned this to colleagues for advice they said that they've had similar experiences and set up repayment plans. So I assume that the credit profile isn't ruined completely as we're not allowed to have bad debt really? xx

paulmcerlean

katyboo123 wrote: »

I know and when I mentioned this to colleagues for advice they said that they've had similar experiences and set up repayment plans. So I assume that the credit profile isn't ruined completely as we're not allowed to have bad debt really? xx

Ruined is perhaps too strong a term - it totally depends on santander as to how they choose to play it:

A) start showing missed payments on the current account file on the CRA reports until it is brought back into shape

show on the file that the account is under an arrangment to pay off, which is still bad as it will restrict further lending from elsewhere as it is an indication that someone is struggling.

Did they offer to turn the overdraft into a personal loan? If your sister has a good rating, this would have been a pain free way to clear the overdraft whilst being able to pay off in smaller amounts.

Hope this helps a little.

P.

HouseHuntr

katyboo123 wrote: »

Dear me, sadder and sadder...

I just wanted to know the best way to approach Abbey, thankfully for me and my Sister, I managed to work it out with Abbey direct, without her credit profile being tainted (as confirmed by Abbey - to be checked though!).

But thanks for the advice, support, warmth and understanding.

So sad that my heart bleeds for you and your sister (if there really is one)!

Spooneroonie

katyboo123 wrote: »

I sorted it, they are reducing it by £30 per month whilst suspending all interest deductions and charges - plus she is allowed to keep using the remainder of the overdraft and her debit card - as she has superb credit rating and is very vigilant when it comes to handling her finances (aside from living in an overdraft, which as a Credit Analyst I will tell you, more people with superb credit ratings do than don't).

Something else that you / she might want to consider is the interest rate she is being charged for the O/D. Just checking what you write above, it sounds as though she now has interest rate of 0%, but on the basis that she gradually reduces her O/D to nothing. If she wants to continue to have an overdraft, and you think she has the credit rating to get her one, then some banks provide some level of interest-free overdrafts, depending on the bank and account in question. Anyhow, just a thought...

katyboo123

paulmcerlean wrote: »

Ruined is perhaps too strong a term - it totally depends on santander as to how they choose to play it:

A) start showing missed payments on the current account file on the CRA reports until it is brought back into shape

show on the file that the account is under an arrangment to pay off, which is still bad as it will restrict further lending from elsewhere as it is an indication that someone is struggling.

Did they offer to turn the overdraft into a personal loan? If your sister has a good rating, this would have been a pain free way to clear the overdraft whilst being able to pay off in smaller amounts.

Hope this helps a little.

P.

They didnt offer to turn in to a loan. They said exactly to me the following:

1. Her permanent overdraft will within 7 days be completely revoked
2. Her temporary overdraft of £300 will be applied within the same period
3. Beginning 27th April, ongoing for 10 months, this temporary overdraft will reduce for £30
4. Failure to maintain regular credits and a balance within the temporary limit will result in immediate revocation of the temporary overdraft (this isn't a problem as she hasn't ever gone over the limit and has her maternity pay going in along with tax credits, etc)

I suggested she get a loan, in fact I offered to give her one interest free (in lieu of my nephews Christening gift lol), but she is determined not to get in to any more debt or borrow from family (she's my little sister and trying to be independant!), she is trying to pay off the debt she has - absolute worry-wart she has an overdraft for £300 and a Car Finance Agreement which costs her £39pm (oh and a mobile contract bill).... I mean I can totally see why she loses sleep!!!!!!!

Guess it's all relative!

Thanks again hun xx

katyboo123

Spooneroonie wrote: »

Something else that you / she might want to consider is the interest rate she is being charged for the O/D. Just checking what you write above, it sounds as though she now has interest rate of 0%, but on the basis that she gradually reduces her O/D to nothing. If she wants to continue to have an overdraft, and you think she has the credit rating to get her one, then some banks provide some level of interest-free overdrafts, depending on the bank and account in question. Anyhow, just a thought...

Good point, I am sure she will shop around once she's paid this off xx