Overdraft question

Brassicks

Quick question,as this happened to me,and i have found a couple of other people that this has happened to recently,although with different banks.

If bank offers you an overdraft,and in the paperwork it doesnt say how many months its for,have they got the right to cancel the overdraft[i know they do have the right on that]without informing yoou.

If by withdrawing the overdraft,without putting it in writing to you,is there any action that can be taken,if that has caused someone to get into money troubles.This is besides claiming charges back.

Brassicks

any answers any one

girltuesday_2

My bank (Lloyds TSB) state in the 'contract' for the overdraft that it can be withdrawn at any time, so you effectively agree to that when you take out the overdraft. Therefore I imagine you don't have much grounds for a complaint if they actually do it!

jackieb

I thought the banks could cancel an overdraft at any time.

Brassicks

I understand that they can cancell it,my query is should they give you notice that they are going to do it.

Crown

Hi, I was in the same boat when the Halifax withdrew my overdraft and demanded that I repay £5000 within 28 days.

Im afraid I do not have the correct answer but I am currently looking into taking action against them as they gave me no notice and meant that I got into arrears . My own fault for living on credit for so long but by god have they been unhelpful.

sorry I couldnt be any help but I too would be interested if anyone has any advice on this

Brassicks

Anyone know if the FSA gives any report on this

xgingerx

Hi, I had a overdraft with Nationwide for 2000, they send a letter 3 weeks before to say they had reviewed the account and reducing it to 1000. So I thought Shi& what am i going to do find 1000 to pay it off?
I called them and said it wasnt my account conduct but more likely to do with the amount being paid into my account each month was less than before (still 1500 though, before my wife paid hers in another 600) so said I would have to speak to collections, they said i could pay 100 a month reducing the overdraft each month, thought this was great until they said it would be to pay the whole 2000 and would show as an arrangement to pay on my credit file which isnt serious but not that good neither! And then I would have no overdraft facility !! Anyway I borrowed the 1000 off my dad and brought the account to its new limit, now this is mad, the following month I checked my overdraft which was reduced to 1000 and it was offereing to increase it back to 2000 !! No douby because i had paid an extra 1000 in to my account the month before, madness of what !!

A way round this for me therefore is to take money out of my account and pay it back in to maintain an overdraft. I do want to pay it off but just thought Id share this with you !!

Newgirl_2

My understanding is that the agreement for most overdrafts states that it can be withdrawn at any time. I am sure in the same agreement, it will say whether any notice is required, perhaps banks differ so you would need to check your own bank anyway...?

In my own experience, I know many people who use their overdraft like a loan or credit ie they are always to their limit, so it wouldn't matter how much notice the bank give. I've done it myself and I couldn't suddenly pay my overdraft back one month, 3 months etc.

On another thread, I saw mention of banks only allowing use of an overdraft for 15 days in the month (I can't remember if this is already the case in other countries or was suggested as a future plan for banks) but it would certainly stop a lot of people from making that first drop into debt problems. I for one will not have an overdraft again once I am debt free.

Newgirl

Brassicks

Well the overdraft was offered to me on the basis i took out a consolidation loan..The loan was over a 6 year period,however the bank stopped the overdraft after 6 months,no notice no warning.....hence i got into a mess......but now im on the road to recovery.Im just wondering if this is underhand tactics by the bank.