Overdraft queries please help

littlelegs123

My mum is in debt, the details of how and why are irrelevant. She has an overdraft of £1k, that has now been retracted and she does not have the means of paying it back immediately. She is retired and only has her pension as income. My brother lost his job last year and she lent him money to pay his mortgage before he lost his home, so even her savings have been eaten up for the time being. Yorkshire Bank are charging her £25 a day for every day that she is over her newly agreed overdraft limit of zero. She has been in to see them numerous times to try and sort this out but they are not interested and just keep adding the £25 fee on daily. She has offered to pay it back in smaller payments but they have told her that there is nothing they can do to help her.

I don't understand how she is supposed to get out of this as every day she is just getting deeper and deeper in to debt.

I am probably going to get this transferred onto one of my 0% cards and she can pay me monthly, but I just wondered if anyone else has had this before and whether a bank has offered an alternative answer?

I know the bank have the right to withdraw this at any time and that she shouldnt have got herself into this mess, before anyone states the obvious!! : )

Hannah_10

That's a really shocking state of affairs, I think she could do with some proper advice as to her rights because this is a really terrible way for Yorkshire Bank to be carrying on. I hope it's illegal of them, but I don't actually know. I know who will though, get her to ring National Debtline on 0808 808 4000

http://www.nationaldebtline.co.uk/

mrcow

That is shocking.

A bank can obviously withdraw their offer of an overdraft, but generally, that will be in terms of e.g. freezing it and reducing it over a period of time say 6 months. What actually happened here? Did they give her any notice?

I disagree that the reasons for the debt are irrelevent - this is very unusual for a bank to act in this way - is there something we are not being told? Has your mother abused the overdraft facility or not paid scheduled repayments etc?

Personally, if I were you, I would call them myself (with my Mum present for authorisation purposes) on this number to get this escalated:

If you are still dissatisfied with the response from your Branch/Relationship Manager you may refer your complaint to our Customer Engagement Manager at the following address. The Customer Engagement Manager will arrange for your complaint to be investigated further.

Customer Engagement Manager
Yorkshire Bank
Head Office Complex
4th Floor, 51 West George Street
Glasgow
G1 2HL

Telephone : 0845 602 5410
email : [EMAIL="customer.engagement@eu.nabgroup.com"]customer.engagement@eu.nabgroup.com[/EMAIL]

Insist that they refund these £25s and any associated interest and reduce the overdraft facility by a reasonable amount per month.

http://www.ybonline.co.uk/contact-us/complaints-procedure-contact-us

Tixy

Do you know specifically why it was retracted?
Eg - had she been going over the limit?
or has she stopped paying in any money to the account regularly.
Or stopped paying a different debt she has with the same bank (doesn't sound like it).
These are usually the 3 main reasons for an instant recall of an overdraft.

Rather than go into the bank I would suggest she writes to them saying she only has a pension income and is unable to repay it in full at this moment. Then add a proposed repayment plan of £x per month and ask them to freeze charges & interest and to refund the £25 daily charges that have gone on so far.
By posting it you will ensure it is read by someone with the ability to make a proper decision. Send it recorded so you can prove they receivied it.

DarkConvict

Overdrafts can be taken away in full given 30 days notice, they don't need a reason, this is in the T&Cs of all overdrafts and something the user has agreed to. It is also the banks gives you an umbrella and takes it away when it rains scenario.
She would have had 30 days to have got out of the overdraft by one means or another.

The bank doesn't have to be helpful, although they should be. It is difficult to complain to the regulators as the bank is well within lawful terms and conditions. And the time it takes to complain is so long you will just have a stack load more charges. Have you looked into moving the overdraft to a special credit card at 0% (Super balance transfer) - http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs