Barclays refusing to extend student overdraft

gfrdl

My daughter currently has a £750 overdraft with Barclays and is eligible for more.
She is still in her second year doing medicine. So will be on a long course - 5 years.
She has been with Barclays since childhood - so has a very long finance history available. She does not have a credit card on purpose - but does have a cheap mobile contract. So does have a bit of credit history.
The first time she spoke to the bank she was told that she was not eligible because she had an ISA with them and she should use money from the ISA rather than increase her loan ! The ISA was moved elsewhere - but they could probably see that it had been there. The second time the person gave no reason other than the application was rejected. The third time she was advised at a different branch that the bank was not providing a loan for luxuries - when this is for forthcoming rent.
The bank of mum and dad is filling the gap temporarily until her next loan installment as she has to start paying next years rent in July.

Any comments or advice appreciated

[Deleted User]

If she doesn't like the service she's recieving, then switch banks - there are plently of banks offering student accounts.

Have a look at Martin's main page on student accounts as a starting point: http://www.moneysavingexpert.com/banking/Student-bank-account

Her current bank are not obliged to extend her overdraft further.

D9

callum9999

I know you are just trying to help, but if I had personal savings I wouldn't take a loan off my parents. Why can't she pay the forthcoming rent with money from the ISA? It's going to be a struggle for me to start paying my rent (in 2 weeks time - incredibly annoying considering I won't be living there for another 3/4 months!) but in my view you should try and look after your self where you can instead of running to mum and dad for help. She's a fully grown adult and should be able to cope herself (especially on a medicine course!).

GothicStirling

They don't have to extend the overdraft. This is why I switched my student account.

That was back in 2007 of course, pre-credit crunch.

southoftheriver

I'm just finishing at medical school and would recommend NatWest. I've been at uni 7 years and have had very few problems with regards to my overdraft. Barclays are being silly because your daughter will have good post uni prospects and losing her as a future customer will be their loss.

Surfbabe

my daughter has just finished 2nd yr at Uni and Barclays would not extend her overdraft from £250 to £300 despite her having banked with them since she was little. Really annoyed as bank of mum and dad has to help out otherwise they were going to bounce her rent

gfrdl

Good to hear from you

My daughter has indeed contributed significantly from her savings already. I agree that she needs to learn to look after herself. The problem is that the rent payments demanded will add up before her first loan in September/October.

It is so crazy for someone who is a long term Barclays customer with good track record and good future prospects to find such restrictions. Especially despite published overdraft limits - accepting they are all "up to" numbers.
I know the bank are not forced to loan to anyone - it is future business that they are loosing.

We are currently considering a swich to alternate bank.

Cheers folks

scottishblondie

I have banked with the Halifax as my main bank since I was 18. I've had savings accounts, credit cards, and even a mortgage thru them. However, even though their advertised maximum student OD is £3k, I was on £1250 for 4 years. It was mostly unused as I had a job. Then when I really needed the money due to funding problems, they refused to extend it as it would be "irresponsible lending"!!