Pay off loan but not touch overdraft? Natwest - advice needed

Splather

Guys

I have a loan that I have had with Natwest for a long time. Recently I was involved in a traffic accident, and the resulting insurance payout is enough to clear the loan.

Unfortunately I also have an overdraft, too.

What I'm worried about is that if I pay the cheque for the accident into the account and ask for a settlement figure for the loan - will they want me to clear the overdraft first? Can they insist on it?

Unfortunately the cheque won't cover both. The overdraft is agreed, so perhaps they will see it as a separate agreement?

If anyone can help I'd be really grateful, cheers

Splath

Beast

Given the nature of an overdraft I would expect any funds you put into that account to first go towards clearing the overdraft to bring you back to £0

Fang_3

Open another bank account with a different bank if you're that worried.

Splather

That's actually a really good idea.

See, I paid a cheque in some time ago that was enough to clear the overdraft (but unfortunately needed it to cover car repairs, so it had to come straight out afterwards) and they never said a word, nor asked me to pay off the overdraft, so I was sort of hoping this would be the same.

Does it make a difference if I've got one of those accounts that you pay a monthly fee for, or am I just being ridiculously optimistic?

redpete

People have posted on here that they have had overdraft limits cut without notice. I don't think you can guarantee that this would not happen to you, and it might happen after you've paid the cheque in but before you've taken any of the money out, leaving you with less disposable money than you were assuning.

Splather

Hi guys

Righto - called them up and they said that apparently you can pay off the loan without doing anything to the O/D. Tried to convince me to take out another one, but basically said it was cool.

Cheers to everyone who gave advice.

Splath