Livid. The bank and the teenager's overdraft

boracic_2

Thank you to all who got involved in this.


I originally posted because I was looking for help - I was not looking for a kick in the teeth and, TBH, that's pretty much what some of the replies felt like, which is why I did not rush to reply - but I'm sure you are all decent folk just trying to get the message across.

dustypixie

You've started an interesting thread, people seem to have really strong opinions! I'm currently in my last year at university and I can see both sides here. I know a lot of students who have eaten into their overdrafts, because they could really. One of my friends who is a bit older than me used to have big debt problems from when she turned 18 and companies seemed to line up to lend money. Now she's older she has managed to sort out most of her money problems and realised how irresponsible she was. I remember when I turned 18, clothing catalogues were the worst; all these advertisements, get it now, pay later, £500 to spend right now. I hated it! What was the point of paying later? I still had to pay! And no, I didn't have £500 to spend on clothes! Lucky I thought better of it but so many others don't. My point here is its easy to see how tempting it is.

Society doesn't value money in same way it used to, student loans are one example of this. Parents worry and consider saving up as an option instead of a loan and young people who take up the loans start their career in the mindset of debt (what has come to be a normal way of living). In reality students are always better off getting a loan because even if they don't need it, it would be possible to put it in a savings account and earn a higher interest with it than the interest that would have to be paid back. This is because the student loan should follow base rates.

Personally I have taken out my interest free overdraft and put it in a savings account. When I finish university and the bank want their money back I can pay them and keep the interest I have earnt on it to myself. It's a shame interest rates are so low currently for savers such as myself. It seems we are the ones paying for companies who lined up to offer loans to people who could not pay them back. I'm hopeful, thanks to people like Martin Lewis things are starting to change for the better.

Please remember there are lots of people in the same situation as you and your daughter, so posts like yours are really important. As I have said, things aren't like they used to be and education is key. Best of luck!

CLAPTON

dustypixie wrote: »

In reality students are always better off getting a loan because even if they don't need it, it would be possible to put it in a savings account and earn a higher interest with it than the interest that would have to be paid back. This is because the student loan should follow base rates.

Personally I have taken out my interest free overdraft and put it in a savings account. When I finish university and the bank want their money back I can pay them and keep the interest I have earnt on it to myself. It's a shame interest rates are so low currently for savers such as myself. It seems we are the ones paying for companies who lined up to offer loans to people who could not pay them back. I'm hopeful, thanks to people like Martin Lewis things are starting to change for the better.

one assumes some irony here

flora48

You are not responsible for your daughter's debts. She is 18, an adult and legally responsible.
I speak from experience.
The bank will not engage in any dialogue with you as it breaches data protection, we wrote to the bank to ask that our daughter was not to be given any further credit due to being unemployed, ill and claiming benefits but not even an acknowledgement from the bank, yet the credit continued.
Do not pay off any overdraft, she will just get an increase on it and the problem is compounded.The debt can just be accrued again and again.
I hope that your daughter learns from this experience, but let her suffer the consequences of her actions, ie: she has no more money to spend.

I agree that the banks have been irresponsible in their lending but as they are all now adults at 18 they have to learn that being adult brings responsibility. Part of the problem is that our youngsters see debt as inevitable,the student loans system means that the government is saying that a debt of several thousand is quite the norm and acceptable. Rant over!!

dustypixie

CLAPTON wrote: »

one assumes some irony here

I was just trying to help. People on these forums used to be nice instead of just looking for the next argument to join. If you have some problem with what I've said please say what instead of making snide comments.