Overdraft

JonathanO_2

of £2420 with barclays, i went to the halifax today and have opened up a new account with them transferring all my direct debits and my wages into this account from the end of the month hopefullyy, Can barclays stop this happening or not? i will be paying £200 a month into my barclays account to clear my overdraft still but no wages or direct debit willl be coming out or going into the account

timbstoke

They can't stop you setting up your accounts with Halifax, or cancelling accounts with them. However, I'm not sure if they can refuse the automated "fill in this form and we do it all for you" thing that most banks offer these days. Probably worth making a note of all your DD's and standing order details so you can set them up manually if needs be.

JonathanO_2

timbstoke wrote: »

They can't stop you setting up your accounts with Halifax, or cancelling accounts with them. However, I'm not sure if they can resist the automated "fill in this form and we do it all for you" thing that most banks do these days. Probably worth making a note of all your DD's and standing order details so you can set them up manually if needs be.

Cheers mate, i have been to the halifax today to set an account up, i didn't tell them about my current overdraft but they didn't ask, they have my direct debits and are going to transfer them and my wages/income manually anyway.

They done a credit check on me and that came back fine so should i worry that barclays might do something to block it happening, i am abit worried ...

david39

You need to be very wary here.

As soon as Barclays see that you have no regular salary coming into your account they will immediately cancel your overdraft and demand full repayment of it.

It's only your regular income that is giving them security that they can get their money back from you (which they can do by stopping the overdraft on the day your salary comes into the account). If you have stopped your salary going in, they have lost that security and will act in their own defence.

Many people do not realise that overdrafts are subject to cancellation at any time and that no notice needs to be given. There are many threads about this, and on other forums, from people who have fallen foul of doing exactly what you have done. I imagine that Barclays will come down on you like a proverbial ton of bricks.

JonathanO_2

david39 wrote: »

You need to be very wary here.

As soon as Barclays see that you have no regular salary coming into your account they will immediately cancel your overdraft and demand full repayment of it.

It's only your regular income that is giving them security that they can get their money back from you (which they can do by stopping the overdraft on the day your salary comes into the account). If you have stopped your salary going in, they have lost that security and will act in their own defence.

Many people do not realise that overdrafts are subject to cancellation at any time and that no notice needs to be given. There are many threads about this, and on other forums, from people who have fallen foul of doing exactly what you have done. I imagine that Barclays will come down on you like a proverbial ton of bricks.

Ahhh !!!! that doesn't sound very good at all....Might get on the phone to halifax and cancel my new account.....Hope it ain't too late though??

Yargo1

OR can you arrange for your salary still to go to old account and then on pay day transfer it over to your new account?

ive opened a new a/c, and doing just that until i can pay the od off natwest.

JonathanO_2

Yargo1 wrote: »

OR can you arrange for your salary still to go to old account and then on pay day transfer it over to your new account?

ive opened a new a/c, and doing just that until i can pay the od off natwest.

Surely they will realise that i am transferring it straight to another bank though....

PS David39 do you think barclays will do this straight away and ask for the overdraft repaid or a couple of months time?

david39

Jonathon & Yargo :
I don't understand what you are gaining by doing this bank-swapping - you still owe your first bank the o/d and you are risking the problem that, when the old bank realises what is happening, they will pull the plug.

In the case of Jonathon, Barclays will just go for immediate repayment and he will have to try to get Halifax to fund it - which they almost certainly will not do as that would put them in the same position as Barclays are.

In the case of Yargo, when they see you are transferring all your money out on the same day that it is coming in, they will step in, between the time of the two transactions, and grab what is theirs.

You should have stayed with your first banks and, if you have a problem with the overdraft, go in and talk to them and resolve the problem amicably - they would probably have agreed to some mutually beneficial plan that was to the good of both parties. As it is, they will be looking at you with great suspicion and working out the best way to get as much money as possible back, as quickly as possible.

Both of you risk being left with a debt you can't repay immediately and that will then go against your credit record, making further, immediate credit almost impossible.

JonathanO_2

david39 wrote: »

Jonathon & Yargo :
I don't understand what you are gaining by doing this bank-swapping - you still owe your first bank the o/d and you are risking the problem that, when the old bank realises what is happening, they will pull the plug.

In the case of Jonathon, Barclays will just go for immediate repayment and he will have to try to get Halifax to fund it - which they almost certainly will not do as that would put them in the same position as Barclays are.

In the case of Yargo, when they see you are transferring all your money out on the same day that it is coming in, they will step in, between the time of the two transactions, and grab what is theirs.

You should have stayed with your first banks and, if you have a problem with the overdraft, go in and talk to them and resolve the problem amicably - they would probably have agreed to some mutually benefiial plan that was to the good of both parties. As it is, they will be looking at you with great suspicion and working out the best way to get their money back as quickly as possible.

Both of you risk being left with a debt you can't repay immediately and that will then go against your credit record, making further, immediate credit almost impossible.

Cheers, i will have to cancel my new halifax account, i will probably make an appointment with barclays, see if they can set me a new account up and make a direct debit into my other account which i can't touch....

mrsb83_2

Are you in danger of defaulting? Are you being chased for other debts by Barclays?

Just wondering if you really need another account.

JonathanO_2

mrsb83 wrote: »

Are you in danger of defaulting? Are you being chased for other debts by Barclays?

Just wondering if you really need another account.

Nope got no other debts, it's sad really but i just thought it might make me feel better about my debt if i have an account where i am not in the red....

Hopefully i can go to barclays and try and sort a plan out with them where i can get a new account and clear my current one paying direct debits?

God knows...

if i go into halifax now and say i have changed my mind, will they give me the £200 i have put in my account with them/....? and just stop the process of changing direct debits etc?