Abbey Overdraft Problem

buzzby

Hi

I've just received a letter from Abbey saying as from oct 1st they are taking away my overdraft facility.
I am £1400 overdrawn and cannot afford to pay it all back by then, and they said they will start charging me interest if I dont.
Where do I stand on this and what would be the best action for me to take?

Many Thanks

Chris

$17mma

Call them ASAP and first of all appeal against the decision with telephone banking department, they will send this off to the underwriters electronically and give you a decision in a few days.

If this is unsuccessful then call Abbey again and request a Manage Down. A Manage Down is when your over draft expires and is taken away by the underwriters, their debt department will put a temporary Overdraft back onto your account for the amount that the underwriters took away and will also include any pending charges. You will then have to consider how much of this you will pay back monthly and your temporary overdraft will reduce by this amount each month on a set date that is convenient for you. You may have to relinqush facilitites such as debit card, cheque book etc and possibly direct debits unless you can ensure them that you will not abuse these facilities whilst the manage down is in place.

The Manage Down stretches between 12-18months, so technically it is an interest free loan on your bank account.:T

However should you go overdrawn or incurr any further charges or miss your monthly payment the Managedown will immediatley be taken away and the whole balance made payable immediately.

You will also have to ensure that your salary is paid into the account to show good faith.

A managedown is pretty good becuase it means that your account is not in the red because of the temporary overdraft and not incurring any monthly charges.

Good luck

bargains83

buzzby wrote:

Hi

I've just received a letter from Abbey saying as from oct 1st they are taking away my overdraft facility.
I am £1400 overdrawn and cannot afford to pay it all back by then, and they said they will start charging me interest if I dont.
Where do I stand on this and what would be the best action for me to take?

Many Thanks

Chris

Is there any particular reason why the overdraft is being taken away from you?, I.E are you in your overdraft most months and aren't really clearing it down?.

Or has nothing really changed in your account activity and has this been done out of the blue?.

The only reason I ask is because I noticed a previous post on here regarding someones overdraft being taken away and I am wondering If Abbey are starting to re-assess their customers risk factor.

$17mma

There can be numerous reasons why an overdraft is being taken away

• Incurring charges
• Not honouring Direct Debits/Standing orders
• Not crediting the account enough to service and sustain the overdraft in line with terms and conditions.
• Or living in your overdraft and depending on it to live (if this is happening you are seen as a risk should your income suddenly drop you will have a problem paying it or sustaining it.

Tayus

I am with Natwest and the last few years they have increased my ovedraft limit to 3400! I permanently live in my overdraft so am i at risk of having it taken away?

M_Thomson

Tayus wrote:

I am with Natwest and the last few years they have increased my ovedraft limit to 3400! I permanently live in my overdraft so am i at risk of having it taken away?

As long as you go above Zero once a month you shouldn't do.

oldwiring

M_Thomson wrote:

As long as you go above Zero once a month you shouldn't do.

I'd say slightly different. My penn'orth is this. 'Provided the bank does not perceive that a substantial part of the o/d is becoming hard-core (i.e. sort of permanent, or OTOH unused, it could well remain the same as now. However that is not so say that with current situation o/ds will not be reviewed.

If o/d is reviewed, one option a bank may take id to put all or part on to a loan with reguar reductions.

buzzby

I am in it all the time and near the limit, (Dont earn enough not to be!!) they didnt mind when they kept raising it though.

$17mma

buzzby wrote:

I am in it all the time and near the limit, (Dont earn enough not to be!!) they didnt mind when they kept raising it though.

They will raise it.. always the way.But your responsibility to say you dont want it if you cant afford it too.