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

BLT_2

HAVEFAITH wrote: »

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

Given that current overdraft rates sit at around 20% one would suggest that the best option for your friend would be to approach the bank and see if the overdraft can be converted into a loan at a more reasonable rate, Sainsbury do a rate of 8.9%, which would effectively reduce the interest your friend is paying.

If conversely your friend has other large debts that preclude him or her being able to take advantage of low loan rates (eg other loans, credit cards etc), then one can understand the banks stance, it is merely operating in self defence, albeit somewhat harshly.

I would suggest that she or he needs to go in for a sit down. Drafting a letter attacking the banks stance is hardly likely to ensure cooperation on their part and should be seen as a last resort. Lets face it, she or he needs assistance far more than the bank does.

DaisyFlower

HAVEFAITH wrote: »

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

Has your friend complied with the terms, whilst they may not have gone over the limit are they actually bringing the overdraft down any each month or simply keeping it at the 10k level. Thats one big overdraft and the bank may believe they are living beyond their means and that it is not being repayed satisfactorily.