Barclays student overdraft problem

curlydownes

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My daughter has a Barclays student account, the one advertised with a £2000 0% overdraft. She was given an initial £200 overdraft facility to start with and she has dipped into that now and then. As it is approaching the time her next loan payment is due (January), she wanted to extend her overdraft to £300. As directed by Barclays when she opened her account she went into her local branch to organise this. However, yesterday in the branch, the advisor said she had to contact the loans dept and gave her a phone number. After a long phone call and interrogation about her spending habits she was refused. So my daughter was not able to get her Christmas presents for friends and family this year!

This does not seem to be in the spirit of a £2000 0% overdraft student bank account.

When the account was opened back in September we showed the Barclays advisor that my daughter would be at worst overdrawn by £750 just after her rent had been paid and until the loan cash arrived. Barclays don't seem to have taken notice of this at all. My daughter is going to find a more helpful bank despite having banked with them since a child.

MY ADVICE IS TO AVOID THE BARCLAYS STUDENT ACCOUNT. BEWARE, THE £2000 OVERDRAFT IS A CON, JUST AN ADVERTISING STUNT.

Has anyone else experienced the same sort of problems?

luke2008

Its advertised as up to and depending on individual circumstances...all the banks do it! It doesn't mean she's automatically entitled to it.

I have the student acccount with barclays and have had no problems extending my overdraft several times with them. Although I do admit some make you 'fight for it a bit more.'

SuperHan

The same happened to me - I was first told I had too much in savings, then just an out right no. I was going abroad so was losing my part time income, but they told me I had to reapply when I was at the bottom of my £200 overdraft, which I couldn't as I was going to be out of the country. went to Natwest and they gave me £1600 without any questions. So I'd suggest going there!

Derivative

I was feeling sympathetic until I read this:

So my daughter was not able to get her Christmas presents for friends and family this year!

She wants an overdraft to buy presents?

An overdraft is for unexpected bills and whatnot that come in before you have chance to move money into your current account. It's not intended for long term borrowing.

investme

Have her go in again with a budget written out detailing her income and expenditure (even if its a lie)
I got refused as they made me do a 'rough one' in branch and they didn't think i needed it enough, so went back in with a thorough (read as, made up) budget and it was approved.

curlydownes

Dear All

Thanks for all of your advice it has been very useful.

Its a shame that my daughters cashflow is not straightforward. For example she has signed up for her 2nd year accommodation already, including a £250 deposit. It is things like this that force her into her overdraft, plus her rent payments are due before her student loan arrives.

I will do as suggested and will prepare a income and expense plan. If Barclays are not more sympathetic then I think we will be looking for another bank.

Cheers + Seasons Greetings

devonlu

how strange. I had a student account with them when I was doing my undergraduate degree, and at one point needed to extend the overdraft, now granted this was in 2003, but I just popped into the bank, spoke to them, and it was sorted out there and then with no hassle.

ec07733

Hi all,

Same thing happened to me with Barclays. I am a mature student and mother and have a small overdraft. Prior to changing my account to a student account, I had a pre approved offer of a £10,000 loan with Barclays. I worked part time and will remain working in the same job part time throughout my degree. I asked Barclays to increase my overdraft by £450. First they said i didn't have enough outgoing expenses to require the extended overdraft as I should have enough money from my income!! I required the money for a training course i was going to and it was early on in the month prior to being paid my wages. Then when I challenged this they went through an income/expenditure list, did a credit check, and said because of my credit check I couldn't extend! Just applying to credit expert so I can see my credit report.
Not sure what to do re changing accounts (not sure how easy this will be as I apparently don't have a great credit history) or re-challenging Barclays again??

SuperHan

Again, I've found that Barclays are overly strict with regards to overdrafts. It's probably worth trying Natwest, as they seem to be a lot more relaxed.

And don't worry about your daughter needing her overdraft - I need mine, I could not afford to live (and I have a part time job) without using my overdraft, so every three months it ends up maxed out and then gets paid off by my student loan. I'm in my last year and have lived like this for 3 years - and I would say I'm quite good with finances. I start full time work in September, and after 2 months of working I will have my overdraft paid off entirely, so it really isn't a problem. Provided it's interest free and she's not spending outside of her agreed overdraft, I wouldn't worry about your daughter. Every bank offers huge student overdrafts because a lot of students need them!

Chillitsphil

Agree with this. Barclays are a lot tighter with their overdrafts and a lot ruder even if you've had an account with them for over 20 years.

birduk

They stay in business because we all have different experiences.

When I was a student, I couldn't find Barclays any more helpful. I had £3000 with them for about 6 years, most of which was interest free. However, when I graduated they informed me of the graduate fee- ouch!

I had a horrible experience with Natwest. I was on my placement year and they decided I didn't need my £2000 overdraft anymore, so informed me they were taking it away from me... er.... that was a panicked time- also the reason I moved to Barclays.