Overdraft Termination Notice

leapfrog_2

I have just had a letter informing me that, since I haven't paid in any money "for some time" (how vague is that?) the bank may withdraw my overdraft facility. The last payment was in fact 31st July - so it takes about 6 weeks till they set this procedure rolling. I have written and rung & told tham I am currently selling my house, but with no definite date by which I can make a payment to the account or pay back the full £2600 owed. They suggested I make a token payment by credit card of £10 to re-activate the account. What on earth is the point of using a cash advance on a NatWest credit card to repay a NatWest overdraft, only to go even further overdrawn when the credit card bill is paid from my NatWest account? The point, I suppose, is more money in interest payments for the NatWest group.

I own my own property without a mortgage and have no other debts. I've banked at the same bank (NatWest) for 23 years and usually dip in and out of credit.

I live in France and run my own business from here - this is a temporary cash-flow situation, but NatWest are not playing reasonably, in my opinion.

Can anyone advise on where I stand as an overseas resident. I don't mind losing my NatWest account, but don't want debt-collectors at my door.
Many thanks
Leapfrog

jonesMUFCforever

Banks generally want to see a credit at least once every 5 weeks.
They get jumpy after that as it is obvious that salaries etc that were mandated are now going elswhere.

leapfrog_2

And do they get even more jumpy when you live abroad? Do they actually have any jurisdiction overseas? If I were never to repay, would they be able to send debt-collectors? Is that why UK bank accounts, loans etc. are only available to UK residents?

regularsaver1

Most banks add in their terms and conditions that a regular creditr must be received to maintain the overdraft

makes no different to them if you live abroad

mrs_deadline

Yes, this treatment sounds familiar - it's the combination of being overdrawn and not having regular payments going in.

The point of putting £10 in is to reset the clock I suppose. Seems a small price to pay if it gets them off your case for five more weeks.

anniecave

leapfrog wrote:

And do they get even more jumpy when you live abroad? Do they actually have any jurisdiction overseas? If I were never to repay, would they be able to send debt-collectors? Is that why UK bank accounts, loans etc. are only available to UK residents?

A debt collector or the company themselves can still persue you even if you live abroad. They can also add on charges if they have to trace you because you haven't told them where you are, within or outside of the UK.

The banking stuff being in the UK will be mainly because they will assume you are living in the UK for a start and don't want to start getting into tax issues which may or may not be complicated if you don't.