Bank Charge Reclaiming: What to do if you're overdrawn discussion thread

Velvetine_2

I am new to posting. I have a Student Additions account with Barclays. I have had this account with them as an undergraduate student, and now as a postgraduate student. I have a £3000 student overdraft, which is only about £200 off its limit. My only income is a scholarship which is due to run out in August this year. I was just about to send off my first letter to reclaim my bank charges of £145, when I saw the latest MoneySavingExpert email advising me that the bank may ask me to repay this overdraft. Should I still proceed?

hampydog

Hi All,

Just looking for some advice, Im sure many of you experienced the similar problems/concerns.

I'm 3,000 overdrawn with a barclays account, and have been since I left uni and moved to london, yet I want to claim my bank charges back.

I have sent the first template letter to them and I'm only at the stage where barclays have sent me my copy statements detailing all the charges.

How do I go about claiming them back in this situation. Should I wait until I have cleared my overdraft?

I havent yet set up another bank account and my worry is that as soon as I try to claim anything back barclays will close my account and ask me to clear my overdraft, as have herad this can sometimes be the case. I'm sure I would struggle to find another bank to transfer this overdraft to, particuarly considering my poor credit history.

Please help!

Many thanks

PaulW922

Hi there

There is no need to wait until your overdraft is clear. In fact at face value, one might say you should not wait becuase this way you may be able to reduce your debt and interest payments. However you have spotted the hitch here. Most overdrafts, unlike credit cards, are re-payable at the end of the term or on demand. Do you think an upstanding bank like Barclays would do something as malicious as that? You bet they would! So just bear in mind the worst case scenario before you start. Otherwise best of luck and keep your progress posted here.

Edinburghlass_2

Have a read of Martin's article linked above but also read his posts here, he doesn't want to put people off claiming but as Martin and Paul says above, be aware of what could happen.

Angilion

I've received my statements and gone throught them carefully to get a total. However, I am currently about £200 overdrawn. I have a £900 limit, so I'm not having charges (my most recent charge was over a year ago).

What's worrying me is the apparent trend towards an immediate cancellation of overdraft facility before any settlement.

I wouldn't care if they cancelled it after returning my money, but if they cancel it as soon as they get my request for payment letter (or letter before action, or court action, it wouldn't matter), I'll be in trouble. No doubt they would also refuse to pay any direct debits on my account afterwards too, since I would then be overdrawn without an agreed overdraft. So my mortgage would bounce, my gas payments would bounce...etc. In a week, I would be up the smelly little river without a paddle.

Does anyone have news on this?

johncolin78

You won't get your account closed is the likely outcome. The volume of people reclaiming plus the fact you aren't that much overdrawn will help.

Also the Ombudsman recently upheld a complaint about the closing while complaining practice. Ask someone on the Has your account been closed thread for the URL for the story from the website consumeractiongroup.com which I recommend you have a look at.

Just go for it!

(I am £2k overdrawn and on my limit asking for £600 back and have no income at present. I didn't think twice about getting my money back.)

Angilion

I'm not concerned about my account being closed. Not very concerned, anyway, as long as I open another account beforehand. My post had nothing to do with accounts being closed.

Edinburghlass_2

I don't think there is any trend towards banks calling in overdrafts at the start of any claim but I do think that once a claim is paid out they are going to be looking at how an account has been conducted and reconsider your overdraft then.

blackcountrychap

Hi all
All this about the bank calling debts in is worrying me.
We have huge debts and are dealing through the CCCS with our creditors.
Does anyone know if I start claiming back my charges will the Bank drop all agreed payments through the CCCS?
Many thanks

Edinburghlass_2

You need to read this thread....

http://forums.moneysavingexpert.com/showthread.html?t=306355

and contact CCCS if you have any concerns but be aware that if you are claiming back charges its likely the bank will want their debts paid back.