Overdraft facility still active

Loopgames

Hi I have an overdraft facility for graduates that should have expired a while ago but it is still active.

It's basically giving me £2000 at 0% interest. I've had a look at the terms of the agreement and they've written plainly that any changes made to the overdraft facility that they would write to me before those changes take place. They've never written to me to apply the changes.

What should I do. I can put that money into a high interest account or tell them?

Hmmm..I would be more interested to read what others on here say and what they would do in such a situation.

onlypaddy

they need to tell you to changes in your Terms & Conditions.

If the time limit has expired then it will start charging interest - as this isn't a change in your T&C's then they will not have written to you. Do you owe anything to the overdraft?

Loopgames

They never apply interest on the overdraft when it's overdrawn.

So they've continued the £2000 0% facility.

It was supposed to end 2 years ago.

Loopgames

This is basically how it's supposed to work

year 1 after graduating the £2000 overdraft facility is supposed to shrink to £1000
year 2 after graduating the £1000 overdraft facility goes to £500
Year 3 after graduating the £500 is removed and I end up with no overdraft facility

At each stage they are supposed to write to me to let me know and give me warning of the staggered route to reduce the overdraft facility - this is what I was referring to in their terms.

They have never written to me once so effectively I've still got the facility for the £2k amount.

I used to put it into my savings account to earn interest ready to transfer should they ask for it..now it's back in the current account so I am not using it at the moment.

So the account says I have something like £3k available when I have £1k in the current account that is mine.

onlypaddy

hmmm, strange one

i would just keep schtum then. I think if they were to withdraw it then they would have to give you a notice period. If you are certain it is not attracting interest, and as long as you have discipline, you could certainly put the £2000 into savings until they come calling or start charging interest. Perhaps do it with a smaller amount to check that your suspicions are correct.

And put it in an instant access account in case they do come calling. Dont be tempted by fixed term lock in deals with high interest because you may need quick access

pmduk

I wouldn't hesitate to use it, whilst making sure the money was readily available for repayment. As long as you are not misrepresenting anything to them, surely they are responsible for ensuring that they administer their business efficiently?