Bank given me 2 weeks to pay off my overdraft - don't have the casj

CLAPTON

what are you total debts?

fozmcfc

TheSpade, going by your posts, you seem to be under the illusion that the banks money is your money.

How will you services those minimum amounts and the loan etc, with more money from another overdraft, i.e. not your money.

Consolidation loans are not the answer, ultimately you end up paying more over the long term and that's if you don't rack up the card and overdraft again and end up owing more.

You clearly think you are in an ok position, if you were, you wouldn't be £1500 in an overdraft in the first place. Have another overdraft, a loan and be paying high interest on a credit card balance.

Ok means, no debt, other than prehaps a mortgage, having a regular income and couple of months savings for a rainy day.

Unless you have thousands in savings and the ability to pay off everything you owe now, by selling something or using the savings, you are not in a good position at all.

My advice still stands, you need to look at the debt free wanabee board and try to sort yourself out. Something tells me you are going to disagree completely with my post and continue to live well beyond your means.

TheSpade

I've had the £2k overdraft with the other bank since I was a student about 5 years ago, it hasn't bothered Nationwide up until now, so why would it suddenly?

Instead of everyone going down the route of juding my financial situation, deciding whether I'm in a good position or not how about we stick to the topic please. We've discussed my options a little, is anyone able to answer my question about whether Nationwide choosing to lower my overdraft will affect my credit rating or not.

Is this overdraft reduction going to firstly show up on my credit file and will it lower my score?

YorkshireBoy

TheSpade wrote: »

I've had the £2k overdraft with the other bank since I was a student about 5 years ago, it hasn't bothered Nationwide up until now, so why would it suddenly?

Lenders take a monthly feed from the CRAs. Maybe something's spooked them, such as the opening of a new credit facility elsewhere?

Then again, maybe they're reviewing overdraft usage across their customer base, ie those who are just sat in their overdrafts are being seen as a risk. Why else would you be 'happy' paying circa 20% EAR? Most credit cards are circa 18% APR, and a lot of people will be paying not much more than 12% APR on loans...less on secured loans.

...is anyone able to answer my question about whether Nationwide choosing to lower my overdraft will affect my credit rating or not.

Why would it?...unless the new facility limit immediately put you into unauthorised overdraft territory - and then it would be affected (which is why I suggested earlier to deal with it ASAP).

Is this overdraft reduction going to firstly show up on my credit file and will it lower my score?

Yes to the first, and no to the second. In fact, so long as you're not exceeding the new facility when it's introduced your credit rating will actually improve due to the reduction in your total available credit.

jonnyd281

TheSpade wrote: »

I've had the £2k overdraft with the other bank since I was a student about 5 years ago, it hasn't bothered Nationwide up until now, so why would it suddenly?

Instead of everyone going down the route of juding my financial situation, deciding whether I'm in a good position or not how about we stick to the topic please. We've discussed my options a little, is anyone able to answer my question about whether Nationwide choosing to lower my overdraft will affect my credit rating or not.

Is this overdraft reduction going to firstly show up on my credit file and will it lower my score?

Overdrafts are repayable on demand, they are for short term borrowing only.

It might be worth going to the DFW and posting there, since if I understand you correctly you have a considerable overdraft at the end of each month, plus credit card debts and a loan.

Have you been paying off the other overdraft? It could be the other bank has defaulted you and this has caused Nationwide to review your overdraft.

coppertiger

What I want to know is when are the rules concerning confidentiality of personal information (particularly financial) that exists between a creditor and their customer, going to be brought into the compass of the Data Protection Act.
I feel concerned about some people's comments above which emphasise that agreements between them and their banks will be published onto their generally available credit reports.
Reducing Bank overdrafts for instance is widely practised as a method of buffering the money available to other potential customers. It also serves to ensure a fiscally sound money management program between lender and customer. It should NOT be published into general circulation, as doing so unfairly penalises people from access to other sources of credit. And in one case given here of the Nationwide charging interest of 18+% when cards are available at 0% rates, that to me seems totally unacceptable practise.
Perhaps someone from MSE could find a way to raise this issue on the floor of the house of parliament. Customers should not be unduly penalised in seeking credit, simply because a lender has decided to tighten their overdraft policy. This whole issue stinks. People are locked into debt mountains with little chance to escape.
The Financial Services Act, what little I understand about it, was partly to ensure a fair and level playing field for people to access and gain credit, within an industry that was open and transparent in it's day to day dealings with their customers. All too frequently, through poor regulation of what can or cannot (should not) be published to credit reports causes untold misery for millions every day. It is a form of entrapment - and in this country at least - I thought that was illegal.

TheSpade

Maybe something's spooked them, such as the opening of a new credit facility elsewhere?

Nope, haven't taken any new credit for sometime. My overdrafts, loan and credit card have all been around for a couple years at least. Not missed a payment on any of them, never have. Bills always paid on time.

My financial situation has actually improved, I was seeking work for about 6 weeks before this new job came along meaning I didn't have that much money going into my account (bills still paid though), so I'm actually in a better position than I was in recent times. Seems utterly bizzare they'd chose now to reduce it.

Why else would you be 'happy' paying circa 20% EAR? Most credit cards are circa 18% APR, and a lot of people will be paying not much more than 12% APR on loans...less on secured loans.

I'm certainly not happy at the itnerest rate I pay on my credit card I'll tell you that. My min monthly payment is about £75 and Nationwide take £45 or so of that in interest!! Yet they offer a 0% interest card to their new customers, scandalous!

Why would it?...unless the new facility limit immediately put you into unauthorised overdraft territory - and then it would be affected (which is why I suggested earlier to deal with it ASAP).

I don't know someone else mentioned earlier in the thread that when a similar thing happened to them it showed on their credit file, I didn't really know what that meant, whether it was a good or a bad thing and would affect me in the future. I hope it doesn't.

In fact, so long as you're not exceeding the new facility when it's introduced your credit rating will actually improve due to the reduction in your total available credit.

If Nationwide are willing to be reasonable and negotiate a lesser reduction or a gradual payment then I should be able to pay this off but if they don't budge on the end of the month deadline and want it all paid off then I will be in trouble as I don't have £1.5k in 2 weeks time. I can raise about a grand in total max.

Someone mentioned appealing against this. Will that buy me more time? Will appealing make any difference and would that have any bearing on mt credit rating?

Also would I have any luck in getting Nationwide to change my credit card interest rate from the sky high rate I'm on now to 0% seeing as they are offering it to other customers??

YorkshireBoy

You keep introducing little snippets which should have been in your OP.

For example, it's now apparent that you have a large credit card balance (at minimum payments of 1% plus interest it's around £3K?) with them as well as the £1.5K overdraft. Who's the loan with?...Nationwide also? If it is then that just compounds the issue. The lack of funds, especially if you were paid by BACS Direct Credit in your previous employment, will have triggered a review at month end/second month end.

Re the card, Nationwide is the only provider I'm aware of that only gives one 0% offer (when you first open the account). Did you get 0% when you opened yours? If you did then that's your lot I'm afraid.

Someone mentioned appealing against this. Will that buy me more time? Will appealing make any difference and would that have any bearing on mt credit rating?

That was me. I suggested it because that's what Nationwide want you to do, rather than procrastinating or burying your head in the sand. Did you read the contents of the link I provided earlier. Appealing won't affect your credit rating, unless they make a search of your credit file in order to consider your appeal.

Also would I have any luck in getting Nationwide to change my credit card interest rate from the sky high rate I'm on now to 0% seeing as they are offering it to other customers??

Absolutely no chance! Indeed, I know of no lender who will let you switch a current interest-bearing balance to 0%.

TheSpade

YorkshireBoy wrote: »

You keep introducing little snippets which should have been in your OP.

For example, it's now apparent that you have a large credit card balance (at minimum payments of 1% plus interest it's around £3K?) with them as well as the £1.5K overdraft. Who's the loan with?...Nationwide also? If it is then that just compounds the issue. The lack of funds, especially if you were paid by BACS Direct Credit in your previous employment, will have triggered a review at month end/second month end.

Re the card, Nationwide is the only provider I'm aware of that only gives one 0% offer (when you first open the account). Did you get 0% when you opened yours? If you did then that's your lot I'm afraid.That was me. I suggested it because that's what Nationwide want you to do, rather than procrastinating or burying your head in the sand. Did you read the contents of the link I provided earlier. Appealing won't affect your credit rating, unless they make a search of your credit file in order to consider your appeal.Absolutely no chance! Indeed, I know of no lender who will let you switch a current interest-bearing balance to 0%.

Credit card - £2.7k with Nationwide
Overdraft - £1.5k with Nationwide
Loan - £756 with RBS
Overdraft - £2k with RBS

You're going to love this even more. I haven't actually worked a 'proper' job for over 2 years, have spent my time travelling the world and making money from online gambling. Then I had the 6 weeks of job-seeking once I got back from South America before landing this job.

I never had a 0% offer with Nationwide, not even when I first got the credit card.

To get things clear, why would Nationwide want me to appeal? Surely they just want me to either pay the overdraft off or more preferably rape me with the interest charges if I can't in order to make the maximum money from me. I had a glance at the link earlier, didn't really tell me too much of use.

YorkshireBoy

TheSpade wrote: »

why would Nationwide want me to appeal? Surely they just want me to either pay the overdraft off or more preferably rape me with the interest charges if I can't in order to make the maximum money from me.

Perhaps they would be happier on fixed repayment terms, ie a loan or managed loan?

Anyway, what have you done today about your financial circumstances? Been to branch? Rung them? Talked to them? Appealed? Asked them what alternatives they can offer?

I had a glance at the link earlier, didn't really tell me too much of use.

Well I had more than a "glance" before posting it. In fact I read it all in a minute or two...and I'm not the one with financial problems!

You even have your opening line handed to you on a plate...they say (in the T&Cs) they'll give you 3 weeks notice - they gave you only two (you say).

To be honest it sounds like all you want to do is whinge and not do anything about it. Am I right?