switching from one student account to another - overdraft

tight_scotsman_2

I have posted this in this forum rather than the student forum as it relates to bank accounts in general - please move if you see fit.

Anyway, I currently have one student account from my first degree with the overdraft maxed out, it is about to expire as a student and therefore, interest free, account in the next few weeks. I have another student account that I set up when I started my current degree with a different bank that I use as my main account.


My question is this: what is the best way of dealing with my old overdraft? Would it be foolish to let it go past it's allowed overdraft until the bank seize my account and then attempt to reach a (cheaper) settlement with whichever debt collection agency they sell my debt to? Would this adversely effect my credit rating? Would the debt collection company be able to touch my account at the other bank a different bank? I assume you need a court order for this and that this would be after any opportunity to reach a lower settlement.

Any advice appreciated.

onlypaddy

tight_scotsman wrote: »

.......Would it be foolish to let it go past it's allowed overdraft until the bank seize my account and then attempt to reach a (cheaper) settlement with whichever debt collection agency they sell my debt to? Would this adversely effect my credit rating?

Would the debt collection company be able to touch my account at the other bank a different bank? I assume you need a court order for this and that this would be after any opportunity to reach a lower settlement.

Any advice appreciated.

First question - yes, this would be massively foolish. This would register a default on your credit file and if the debt is big enough the debt recovery agency could take you to court and register a CCJ against you also. This would stop you getting any form of credit - bank accounts, credit cards, mortgages, car insurance or mobile phone contracts in the future.

Second question, if the second bank is not part of the same organisation (e.g Lloyds Banking group is Lloyds TSB, Halifax, Bank of Scotland. Santander owns A&L. Royal Bank of Scotland owns NatWest etc) then they cant touch it.

redpete

tight_scotsman wrote: »

Would [going over my overdraft limit, defaulting on any payments and hoping to pay of a proportion of the debt] adversely effect my credit rating?

Of course it would! Credit ratings are an attempt to measure if you can be trusted with credit. You would have proved that you can't.

CLAPTON

good heavens
chavs on council estates
chavs at Uni

pickleiamin

CLAPTON wrote: »

good heavens
chavs on council estates
chavs at Uni

No need for that is there?

tight_scotsman_2

CLAPTON wrote: »

good heavens
chavs on council estates
chavs at Uni

Thanks for your productive input. Try using some basic punctuation and capitalisation next time to make your point or people might mistake you for a chav. Or was that some kind of poor attempt at a Haiku?

To the others that replied, thanks for the advice.

CLAPTON

tight_scotsman wrote: »

Thanks for your productive input. Try using some basic punctuation and capitalisation next time to make your point or people might mistake you for a chav. Or was that some kind of poor attempt at a Haiku?

To the others that replied, thanks for the advice.

No, it was an attempt to point out that you are asking for views on advisability of cheating and stealing.

Azrael_1701

Also, most student accounts state in the T&C that you cant hold a student account elsewhere as well, so this could come back to bite you if they find out.