Livid. The bank and the teenager's overdraft

ses6jwg

I didn't think that banks have you an overdraft unless you requested it?

We certainly don't (Santander). You have to request one at account opening or walk into a branch/ apply for one on online and ask for it.

Inactive

ALIBOBSY wrote: »

To lend that sort of money to an 18 yr old on that income is not just irresponsible its immoral. It a cynical tactic to get her in debt to them early to keep her on the books and in debt for the rest of her life. This is the same reason so much debt is thrown at students, it is the cynical position that they want them to run up alot of debt to get them used to having debt and keeping them tied to a bank long term.

What a crazy world we live in.

ali x

Utter cobblers, they didn't " lend " her anything, they made the facility available, that's all.

The Daughter acted irresponsibly by spending money that she did not have.

iceicebaby

She is 18, an adult, what she does with her bank account is her business.

Funkyfreddy

Sceptic001 wrote: »

...

EDIT: On reflection, can a bank shift money from one adult's account to prop up another? I would have thought not, but don't know for sure (assuming there is no guarantee agreement)

No but thats not what the OP said - I hazzard a guess the OP was suggesting the banks thinking is that at at some point the parents would make good any unauthorised borrowing or repayment of an overdraft should they call it in.

Not they have to of course (nor that is what the banks logic is either of course).



FF

Funkyfreddy

ses6jwg wrote: »

...

We certainly don't (Santander). You have to request one at account opening or walk into a branch/ apply for one on online and ask for it.

Mmm...not my experience.

I got a £450 overdraft and never asked for it - specifically said no.

FF

Funkyfreddy

boracic wrote: »

She is now about £1600 overdrawn.

Well she still has about £400 to spend on your Christmas presents then

FF

anna42hmr

is your daughter a student by any chance, just wondering as the overdraft seems high, so indicates could be a student account, as many banks give as standard circa 1k-2.5k overdraft facilities for students, and if thats the case then that explains the high limit to income ratio?

if that is the case, many 18-22 year olds have that kind of limit but doesnt mean they have to spend it. I would suggest that you and your daughter sit down and work out some sort of budget for her and an idea of what she is actually spending so she doesnt get in this situation again. i really recommend she starts using this site for a spending diary, at least she can then work out what she is spending the money on and what can be cut back http://www.spendingdiary.com/

i second with what others have said, there is no point in bailing her out as it is only likely to happen again if no consequences.

Malory

Funkyfreddy wrote: »

Mmm...not my experience.

I got a £450 overdraft and never asked for it - specifically said no.

FF

I just opened a bank account at LLoyds and was given a £650 overdraft without asking for it.

I was also given an £800 overdraft without asking for it when I opened an account with HSBC.

It doesn't mean that I have to use them.

My experience has been that when you open a current account the bank automatically checks your credit and offers you the maximum overdraft they can give you.

Alpine_Star

opinions4u wrote: »

She says "can I have an overdraft please" and they say "computer says you can have £2000".

So it was entirely out of the hands of anyone at the bank then?

Computers don't programme themselves.

It was the bank lent her the money and it doesn't get any more difficult to understand than that.

opinions4u

Alpine_Star wrote: »

So it was entirely out of the hands of anyone at the bank then?

I gave a straight answer to a straight question. No spin. No bull. I stated it as it (probably) is.

If you look at the final paragraph of my post you will even see me questioning the size of the overdraft allowed compared to income.

The OP hasn't done us the honour of clarifying whether it's a student account or not. That may explain the loan to income ratio.

But ultimately it changes nothing. The customer borrowed the money and should repay it as and when the agreement demands.

It was the bank lent her the money and it doesn't get any more difficult to understand than that.

And?