Am I doing the right thing???

Karma67

Firstly Hi to everyone,
I have been visiting this forum for about 2-3 weeks now and your advice given to others has been invaluable.

Now to the problem I am facing, it may not seem alot of money to some people on here, but I am trying to get hold of things before they get too much out of control (which seems the best thing to do according to advisors on here).

For the past 3 months or so I have seemed to got myself into trouble with bank charges on my current account.
I am now in a catch22 situation of where... money leaves my account for charges on DD, SO, cheques etc that have taken me over my authorised overdraft limit.... due to the bank charges they have charged me with.

(I hope that made sense)

For example last month I had 6 transactions that at some point made me over the agreed limit and they have charged me £161.24 bank charges which they are taking out on 25/8, and as I was over limit this month because of last months bank charges they are charging £124.00 due out 25/9.

Due to the date they take the charges it makes us even more overdrawn for the last week of the month before salary goes into the bank, therefore I need to buy groceries for that last week,for example, so I write a cheque (usually I spend about £35-£45/week on food for family 4 depends on nappies that week etc), which then takes me over and charged £20 for charges!.....

BTW as of this morning I am only £27 over my £300 overdraft limit.

Well I decided to call the bank to see if I could change the date of charges being taken from account,(usual call centre phone number)... told no.

Asked if I could make appointment with loca branch to talk about charges,... told no, they would only refer me to call centre!

Call centre said they couldn't increase overdraft to cover the charges for that month (I didn't particularly want to increase it anyway)

I was given the bank's debt help number to call which I did later this morning.

After a few details given to debt centre they have given me this option which I need to call back before 7pm today with answer.

OPTION.....1) Go into bank and hand in cheque book and debit card,
2) They will increase my overdraft to cover bank charges for this and next month plus 'extra' £100 to cover me for food until I get new ATM card,
3) Account remains the same as for my DD's and SO's,
4)They will reduce the overdraft by £65/mth for 12 moths bringing overdraft to £0.

I have been told to go to bank tomorrow/today hand card etc over they will then call the debt centre to say I have done that then will issue me with £100 and then decide if I can have this option...??

My main concern is that they will negate on the 'verbal' option after I give back the card(am I paranoid?!), and leave me with debt and close myaccount.

Plus I'm cross that this is mainly due to bank charges and timing of collection of them causing all the problems!!

Also I have 0 chance of getting any loans, credit cards to cover debt, plus I think it would be silly of me to try to cover debt with another debt
Any opinions/advice would be gratefully received.

Thanking you in advance

Tayus

i dont understand why the bank wont just increase your overdraft limit? i'm with the Natwest and they have given me an overdraft limit of £1500. I am only 19 as well!

Karma67

Well, for some reason they won't, but in the same sense they have increased it now, but just taken my bank card and cheque book back so I can't get into anymore debt, ........and it was I who contacted them about this problem first,as I didn't want this problem to escalate further and end up with an overdraft £1K plus. I presumed that would be a 'brownie' point on my behalf, but it seems not.

I still don't understand why they will not move the charges just 1 week later in the month so it is covered by salary going in, thus breaking the catch 22 circumstances,...in my opinion, I thought this could have been solved in 2-3 mths without returning cards etc

...but I still think the £300 of bank charges in 2 mths is excessive, but they are non negotiable about the amount.

robnye

have you tried contacting those companies that you pay by direct debit, and fibbing,' i have changed jobs, and my pay day has changed......... can you change the day you take the money'

the standing orders..... you control, you should be able to change the payment dates, if not, can you stop them, delay payment until just after pay day, then pay

Karma67

Thanx for the advice robnye, unfortunately it seems too late for that now, as the damage is already done, but I will make sure all of them are after payday from now on.

By contacting my bank I've started the ball rolling and have agreed to do as I have been advised.

But I'm trying to look on the bright side....... in 12 months time I will have £0 overdraft and effectively a clean slate again, and if I keep my nose clean, money wise, hopefully about 6 mths time after that I will get another cheque book/debit card again!.....and will be more clued up on Bank Charges definately!!

Heddwen_2

Not with Lloyds TSB by any chance - they do the same to me it doesnt help does it? I swapped banks now!

Karma67

hi Heddwen,
It's Abbey National...went yesterday, handed them over, now I have to wait 3-5 days for a phonecall to see if I can have what they offered but I have been 'reassured' that it will....So I sit here now calling companies that I used to used cheques to pay them trying to organise other payment options!!

How are things with you nowdays....I read about your situation here.....Glad that things seem more in control for you now

Freddie_Snowbits

Seem to remember similar with NW few years back. 'If I stuff my account with pennies from uni, thous will pay my direct debits same day?' 'They replied yes, as long as it was before half three!!'

Great, I got hard cash from other bank and placed into NW at 15:22 hrs, so they can pay my mortgage that day.

Luckily, NW decided that me money not good enough for them, so charged me £127 for the privilege of having money in account and not paying my Gas, Elect and rates as well.

Naturally, I stopped all direct debits (I still only pay the telephone on DD) and paid my mortgage in cash.

When the time was right, I changed bank. Sorry Heddwen, LTSB!!!! Oh, and the ombudsmen gave me my money back, when I really did not need it!!!
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