Bank pulls overdraft then reports to experian & co incorrectly!!

HAVEFAITH

Hi people, I have a story. A close family friend had a 10k overdraft. That was pulled by the bank without notice subsequently incurring bounced dd charges & over od charges etc. Now they find out that the credit reference agencies have also been informed - but incorrectly stating that they went 20k ocer a 10k facility. That of course has a big affect on receiving credit in the future etc. My friend is livid and would like to write to the bank & perhaps the ombudsman etc.

The bank wants the overdraft repaid & will not return the charges. The total arrogance in this matter is making my friend v angry. I feel they should attack it in writing and seek re-dress.

What do you think out there and can anyone please suggest a letter format/template in which to write to the bank with pls??

Blacksheep1979

So they pulled the facility without warning for no reason?

cyberbob

I very much doubt it was pulled with no reason

HAVEFAITH

cyberbob wrote: »

I very much doubt it was pulled with no reason

Yes it was pulled WITHOUT notice!

HAVEFAITH

Blacksheep1979 wrote: »

So they pulled the facility without warning for no reason?

They were due to discuss matters/renewal then their fin advisor told them that they had been reported to the credit ref agencies, which has completely screwed them as you can imagine. I am thinking they should know in writing in the first instance and then set up a meeting. So some help needed with the wording pls

KeithP

OP, how about you drafting a letter and then inviting comments?

xocbc

If the record at the credit agency is incorrect, it can be amended, however he/she should check the terms and conditions of the overdraft, often they can be payable ON DEMAND i.e. instantly, which is something that needs to be considered when running one up.

Hintza

xocbc wrote: »

, often they can be payable ON DEMAND i.e. instantly, which is something that needs to be considered when running one up.

This was my understanding too.

Blacksheep1979

so your 'friend' hasn't repeatedly gone over their limit, had cheques/dd's bounce?

Annisele

"Without notice" isn't the same as "without reason". There are circumstances where it would be fair and reasonable for a bank to withdraw an overdraft without notice, but on the little information we have it's hard to say whether they would apply to your friend.

The bank is within its rights to want its £10k back - overdrafts are repayable on demand - but if this causes financial difficulty it should treat your friend "sympathetically and fairly". Can your friend afford to pay the £10k back? If he/she can afford to, then they should - and also ask the bank to correct the false information sent to the credit agencies. If the bank won't do that, make a formal complaint. If your friend is dissatisfied with the bank's response to their formal complaint, only then can they refer the matter to the ombudsman - they have to exhaust the bank's complaints procedure first.

HAVEFAITH

Blacksheep1979 wrote: »

so your 'friend' hasn't repeatedly gone over their limit, had cheques/dd's bounce?

No always within their limit & always played fair only even incurring interest on a monthly basis of course. I have copy statements and all in order. My friend has had an account with them for over 20 years too. Yes I understand o/d facilities are repayable on demand but the treatment has not been fair & proper. So all I would like to do on their behalf is help out by writing the the bank in the first instance not wanting to go all guns blazing, Hence the request for some sort of format etc