Natwest

skippie

Having just graduated in July, I was under the impression my interest free overdraft would last for one year before gradually being whittled down during the following two years.

I was surprised then when Natwest sent me a letter telling me I was £1200 overdrawn (£1250 overdraft).

I went in to see what was going on, and I was told in no uncertain terms that I should have responded sooner (they claim to have sent a letter a month back), they also told me I would have to apply for a new overdraft (form includes questions such as what other assets do you have-isa,house,car etc and what other bank accounts do you have-give details)

Somewhat confused I asked why they were deviating from the supposed terms and conditions of my contract with them, and they claimed it was standard policy for all new graduates.


To be honest I'm worried about filling this form in because I have a student account with HSBC and a somewhat depleated cash isa, which i feel if disclosed could affect the chances of keeping/getting back my overdraft.

All the time I am being charged interest on my £1200:mad:

Am i special or is this standard practice?

wrexhamandy

The little !!!!!!s.

They did the same to me after my second year into my student account...sent a letter out saying I'm thousands overdrawn and when I rang up and questioned them they said they sent a letter out saying I needed to come in and 'redo' my overdraft for the coming year, which is apprantly standard practice every August time. I said I didn't receive any such letter and they put the overdraft back on straight away at the maximum amount for the coming year. Bit of a strange one as they didn't do this in my first year. Nor have they done it at the end of my third year, they've now just carried it on at £1600 (max for 3rd year) interest free into the graduate account.

In fact, you can have up to £2000 interest free overdraft for 1st year after graduation (then 1000 second yr, 500 third yr after). I rang up 0800 761 033 (number for graduate account) the other day and asked to be put up to £2000, which after they put me through to the lending department they did so fine - so give that a go. Failing that just lie on the form, I've always lied to Natwest saying I have no other accounts (I've got a HSBC student one too) and there's been no problem.

So semi-standard practice and I have no doubt you're special

melancholly

i didn't have to do anything, and they happily kept my overdraft at the same level for a year after graduation (a year later they started charging interest with no notice though).
it sounds a bit odd that you're not automatically getting the benfefits of a graduate account - i bet if you ring up and threaten to switch to another bank that would be more understanding, then they'd give you the over draft in a flash!

skippie

cheers guys, will pop in on monday (which invariably means quing for the best part of my lunch break..)

skippie

Huzzah, phoned up yesterday, The debt collection people said i had accrued £13+ interest and that i had no overdraft (well doh!)

I explained local branch had told me to fill out a hefty form, claiming it was standard practice for people my age. I then said a number of people including my recent g/f hadn't had to go through this. And that i had little intention of paying the interest.

The women paused, and said she would cancel the interest and reinstore my overdraft limit back upto £1250 .

Huzzah!

Thanks for the advice guys

melancholly

well done!!
glad to hear that they backed down!

The_doomed

natwest and rbs are well known for such tactics.

I went £3 overdrawn today but saw it and transfered the funds and called to let them know. excellent, no charges. but woman thinks i should have a meeting with them 'to help me'.

'why is that' i asked?

'eh, just so we can advise you on how to manage your account'

'i have a meeting arranged for friday already'

'oh, thanks for calling....'

-I only went overdrawn by £3, it doesnt exactly happen ever week!


So... Im going in on friday to get them to reduce the rediculous overdraught they have given me on a current account.

what else are they gona try and sell me?

Cerenia

The_doomed wrote:

natwest and rbs are well known for such tactics.

I went £3 overdrawn today but saw it and transfered the funds and called to let them know. excellent, no charges. but woman thinks i should have a meeting with them 'to help me'.

'why is that' i asked?

'eh, just so we can advise you on how to manage your account'

'i have a meeting arranged for friday already'

'oh, thanks for calling....'

-I only went overdrawn by £3, it doesnt exactly happen ever week!


So... Im going in on friday to get them to reduce the rediculous overdraught they have given me on a current account.

what else are they gona try and sell me?

Varies on your status, highly likely an ISA, loan or credit card, when I was working with Natwest I had to try and sell credit cards or ISa to ANYONE, someone coming in to pay in somthing like £3 i had to try and sell a credit card to, and I loathed it, I always felt, as a bank, you were meant to help people, not pressure them into things they don't need

melancholly

natwest tried to offer me a 'savings account' because i pay in my phd stipend money every 3 months so it's a lot to have in a current account. i was on the website as i was talking to them so the idea that the best account for me was the first reserve with an interest rate of 1.3% was quite insulting!
so i guess they were trying to help me save, but suggesting the savings account with the lowest possible interest rate was a joke!!

The_doomed

soon realised he wasnt going to sell me anything!

Got interest free overdraught up to 2k ('I can just walk along the road and get 2.1k in BoS' sorted that).

Tried the credit card pitch, but i told him the fee would cost more than what i pay now.

Then got on to 'anything else'... so i mentioned house buying. Guy admitted he wasnt clued up on mortgages but got the mortgage guy through, ws helpful, and tried to push me to look sooner. But left prompty when told I had just signed a 12 month lease on flat and mate im buying with is away for a year!

Much better service than expected tho.

DrFluffy

skippie wrote:

Huzzah, phoned up yesterday, The debt collection people said i had accrued £13+ interest and that i had no overdraft (well doh!)

I explained local branch had told me to fill out a hefty form, claiming it was standard practice for people my age. I then said a number of people including my recent g/f hadn't had to go through this. And that i had little intention of paying the interest.

The women paused, and said she would cancel the interest and reinstore my overdraft limit back upto £1250 .

Huzzah!

Thanks for the advice guys

That is good news! I was worried for you, as the small print on any student account and overdraft usually says that the bank have the right to withdraw the facility at any time, so I was worried that they might use that as their get out of jail free card... Glad that they saw sense!