Co-Operative Priviledge Premier Account Overdraft

loobylou2

Hi

I wonder if someone could help or offer me some advice because I'm worrying. I have a Priviledge Premier Account with the Co-Op which I pay £13 a month for and which has an overdraft limit of £300 on it. Could anybody tell me if because I pay for the account the bank have to notify me in writing if they decide to withdraw my overdraft or is it something that they could decide to do at any time without notifying me in advance. I'm just a little bit worried that they could withdraw it and leave me with nothing even though I'm not over the limit and have money ( Child Tax Credit) going into my account every week which reduces the amount I owe them in the first instance.

Many Thanks
LoobyLou2

jambosans

Regardless of the account you have, overdrafts are repayable on demand.

Most banks will provide notice (e.g. two months), however some terms & conditions permit withdrawal without notification.

I'd put in place a repayment plan for the overdraft.* If you're concerned the overdraft may be removed, then you could setup a basic account with a bank elsewhere, and move all your bills and credits to the new account.

*By repayment plan, I mean a self-initiated plan, not involving Co-Op, e.g. pay in £50 per month until the overdraft is cleared.

loobylou2

Thank you for that. I just wondered if they could withdraw it without telling me or whether or not they would have to tell me first before they did it. I have got a plan for reducing it anyway but would hate to go to the cashpoint and find that it had suddenly disappeared and I hadn't been warned about it beforehand because it could cause a problem. Am looking at using some savings to clear it anyway but feel a bit reluctant to dip into my emergency fund to do so. Also I know that from the beginning of next year I'm going to be a bit better off as a loan I have been paying off for the last 5 years will finally be settled which will make quite a big difference to my income.

premierfella

Their terms, unsurprisingly, leave open the option of withdrawing formal overdraft limits immediately (sending a letter presumed to have been received within 48 hours of sending).

However, it is fair to assume that this would be a very unusual event and unlikely even if you are living in the overdraft on this account given the monthly fee.

I say this because the Privilege Premier Account £300 overdraft is automatic, so withdrawing it immediately without notice I would assume would mean the Co-op either downgrading the account or (far more likely if withdrawing the overdraft immediately) closing the account.

If you maintain a regular payment into the account as per their terms (which describe a regular payment as wage, salary, pension) then I see no reason for concern. Obviously there is the possibility that the Co-op do not view the Child Tax Credit as a "regular payment" - but in those circumstances I would expect them to write to you and give notice of account downgrade or closure rather than do either of these things immediately.

loobylou2

Thanks for this. I'm a bit of a worrier and was just panicking I think/hope. The account is my main current account and I have my salary as well as child tax credit and child benefit paid into it. I'm not overdrawn on a permanent basis but do have a tendency to go into the red nearer my payday. This month has been particularly bad as I ended up spending around £300 on school uniforms for my 3 children. It gets very expensive when you only have a choice of 2 uniform suppliers for the school they are attending. I'll be doing overtime as soon as some becomes available where I work as well in order to try and reduce the deficit!!!!.