Default Notice on an overdraft?

GemBee_2

Hi,

new to the forum so sorry if I have posted in the wrong area. Does anyone know if a bank can issue you a default notice against an overdraft?

fermi

Yes, they can.

GemBee_2

How can they? My understanding is that you will only be issued a default notice if your account is in arrears but if you still continue to pay into the account your not in arrears surely?

fermi

If you break the terms of the overdraft, then you can be in default.

e.g. exceeding the limit, not paying back the OD facility on demand etc...

If you keep within the terms of the OD, then you shouldn't be defaulted.

GemBee_2

I no longer use the account but it is under the agreed overdraft limit. I have been having a few struggles over the past couple of months so I am inteding on paying it all back in the next couple of months. It's just I haven't heard anything from them and I just suddenly panic about worse case senerio! Thank you for your help. x

fermi

Keep man eye on the account and any correspondence from that bank.

Banks can and will withdraw/reduce overdraft facilities without much notice, meaning that you have to pay it all back ASAP. Although you usually get 30 days or so notice.

If you are not using the account, but are into the OD, they could well do that. If you then didn't pay it back on time, then it could be a default.

clareb2010

I had a OD with Natwest and was not using the account. After 12 mths they called me and said that I needed to start paying it back. I pay in money every month and they are reducing the limit by £50 each month also. They can default you though as lloyds did this on our OD even though we are paying it back through CCCS.

GemBee_2

Mine is with Natwest so hopefully they will be as nice to me as they were with you Did you contact them in that year at all?