Advice needed re; Overdraft

nsandiexpert

My boyfriend has an overdraft with Halifax Bank of £500 (current balance is -£517 due to charges)

His wages have been going to his HSBC account for the past 2 and a half years and he has made few and little payments towards his Halifax overdraft since then. (none since May i believe)

He has just had a call from someone in their debt department stating that if he doesn't clear the balance by Oct 31st then he will have a black mark against his name and it will be listed against our property for 6 years (we have a joint mortgage)

I spoke to the guy and explained that our house is currently up for sale and once we sell we have made over 40k on it - to try and soften him up but he started saying that its like a credit card and this is what will happen if he doesnt pay.

Can they do this?

We have a great history with HSBC and this will put us both in the sh*t! (I never did like Halifax)

grumbler

The mark cannot be 'against property'. It will be on his credit file(s). As you have a joint mortgage, this will also affect you. See the Credit Rating and Check and improve your Credit Score articles.

Yes, they can do this.

P.S. Pay some money into the account ASAP. Otherwise at least £28 will be added each month on top of the interest while the account balance is outside agreed overdraft.

nsandiexpert

They aren't adding anymore charges as they have 'taken away' the overdraft. Its now just debt.

Is there nothing he can do? They said he had to clear the balance in full. They werent interested in small payments.

jonesMUFCforever

They cannot get blood from a stone. If your boyfriend does not have the money there's not a lot they can do.
HOWEVER not making any payments into the account since May and putting his head in the sand is not a good option.
If it goes to aCCJ it will certainly impact on his credit files from now on.

nsandiexpert

If their attitude wasn't so bad, it would make me more likely to 'find the money' but their staff have been awful.

OK thanks for your help

jonesMUFCforever

Attitude won't mean a thing when you are trying for credit with a CCJ on your back!

regularsaver1

Thes the thing with overdrafts - they can be removed at any time if regular credits are not received - at the end of the day no payments have been received since May, so he needs to make an arrangements about brining the balance down.
I'm surprised he had an overdraft if his main bank was HSBC. Remember HSBC would be doing the same.

Be careful - now that he no longer has an authorised overdraft their interest rate may shoot right up for this. so the £517 could soon be higher.