First Direct Want to Withdraw My Overdraft

wer

I have been banking with First Direct for over 10 years and for most of that period, I have had an overdraft facility of £1.5k, which I use ever month. I have less money coming in now than before, and recently received notification that FD want to cancel the overdraft. In fact, having spoken to them, what they really want to do is close my account. Basically, they intend to withdraw the overdraft this week, leaving me in a position where I have an unauthorised overdraft of over 1k, thus making every DD default.
Their alternative plan is to take my existing loan with them (taken many years ago at 6.9%) and add the 1.5k overdraft to make a new loan at a much higher APR. Clearly neither of those is a great option for me and the latter feels like a very shady practice indeed.
On top of this, I am about to look at remortgaging and I do not have a great credit history. Adding a new loan, or starting a new account could impact my credit score that could mean the difference between getting the mortgage or not.
For the moment, I'm putting aside my views about how First Direct are holding me to ransom, and instead I'm trying to firefight the current situation. Is there anyway I can force them to rethink their action? Is there a mandatory appeal procedure that would put this on hold. Can I refer it to the Financial Ombudsman as a means of suspending the action?
Is there anything at all I can do to stop or at the very least delay this?

noh

Is there anything at all I can do to stop or at the very least delay this?

Yes pay back the £1500 you owe on the overdraft.

hello2007

Can you arrange a payment plan with them to pay off the overdraft.

money_maker_2

Try speaking to their collections department and ask to make a payment plan with them. They can arrange to maybe give you a reducing overdraft, where you agree a figure they can reduce it by each month. Tell them what you are earning and calmly explain your situation that its unreasonable for them to take it away from you, when the have originally planned to. If you keep your cool and be pleasent on the phone, I'm sure someone will help you
Once you have set up your payment plan with them, you need to sit down and sort out your outgoings. List everything, how much, who its with etc. Post a statement of affairs on the debt free wanabee board and people will come back with very helpful ways to reduce your outgoings.

suicidebob

noh wrote: »

Yes pay back the £1500 you owe on the overdraft.

Pretty obvious he doesn't have £1500, no?

JuicyJesus

They are allowed to demand repayment of an overdraft at any time. If you are regularly up to the hilt on your overdraft and you start having less money paid into the account then alarm bells will start ringing whichever bank you're with.

Your best bet is to ask to set up a payment plan, as hello2007 says.

le_loup

You use your overdraft facility every month.
Your income has reduced.
You have a loan.
You have a mortgage.
Would you lend yourself more money?

The bank have offered you a lifeline; grab it!

Saints2011

Overdrafts are repayable on demand.

izools

Be careful about anything that could result in adverse information on your credit file if you're looking for a remortgage.

Being in an unauthorised overdraft will create adverse data on your credit file and the mortgage will fall though
Being on a repayment plan will create adverse data on your credit file and the mortgage will fall though

Overdrafts are repayable on demand, and aren't regulated by the Consumer Credit Act 1974, so FD are within their contractual and legal rights to do this to you I'm afraid.

Getting the funds to repay the overdraft from another source is prefarable to leaving yourself with any negative data on your credit file, considering your intention to remortgage.

It will take around two months for any new credit agreement to actually appear on your credit file so if you take up FD on the offer of a loan, and remortgage very soon thereafter, the mortgage underwriters shouldn't see the fact you've just taken out a loan. You could then see if it's possible to remortgage a sufficient amount to cover the loan, or lions share thereof, atop your current mortgage balance.

Good luck!

wer

noh wrote: »

Yes pay back the £1500 you owe on the overdraft.

It really does baffle me why so many people bother to post this sort of stuff on these forums. I've often looked on here an been reluctant to post because there are so many trolls on MSE forums who post these generic, unhelpful, glib responses to people who are reaching out for help and advice. Why waste your time and that of others? I mean, if it stops you from drowning kittens or something, then fair enough, but otherwise, turn off the computer and go and read a book or watch TV or something.

Luckily, these forums are also populated by those willing and able to offer good, practical advice, and those people, I give you my sincere thanks, especially izools.

noh

wer wrote: »

It really does baffle me why so many people bother to post this sort of stuff on these forums. I've often looked on here an been reluctant to post because there are so many trolls on MSE forums who post these generic, unhelpful, glib responses to people who are reaching out for help and advice. Why waste your time and that of others? I mean, if it stops you from drowning kittens or something, then fair enough, but otherwise, turn off the computer and go and read a book or watch TV or something.

Luckily, these forums are also populated by those willing and able to offer good, practical advice, and those people, I give you my sincere thanks, especially izools.

Who gave you the same advice as I. But used more words in doing so.

izools wrote: »

........................
Getting the funds to repay the overdraft from another source is prefarable to leaving yourself with any negative data on your credit file, considering your intention to remortgage.