Overdraft problem

cottonhead

I applied for an overdraft online a few months back and one morning whilst in a rush I quickly logged on and asked for an increase. It was granted and rushed out the door......

I went to take some money out and it was declined so I had a webchat with the bank and thats when I realised I had accidently asked for a decrease and was now £700 over my overdraft limit!

Horrified at my mistake I explained to the bank it was an error but because technically I was now hundreds of pound over my agreed limit they asked me to repay the whole overdraft of £2000.

The trouble I have is they wont accept less than £100 a month and I cant afford it. I have explained this and I know creditors are not supposed to force you to pay more than you can afford. They just wont budge and are saying that because I have now broken 3 'agreements' my account will default and it will ruin my credit file for 6 years.......... so worried as we want to move house soon.

What is my next step ? I just want to protect my credit rating and I am gutted as it was a mistake and prior to that I was obviously deemed trustowrthy enough to be give the £2000 overdraft.

Tixy

With an overdraft it can be recalled at anytime. Whilst they will have to accept less than £100 if that is all you can afford and cannot force you to pay that much, they will unfortunately be entitled to register a default on your credit file.

In fact even if you could afford and agreed to pay £100 a month they could still register a default now that they have recalled the overdraft and you haven't been able to pay the full amount.

Toni_Broke

Hi Cottonhead

I seem to remember reading that you are on a dmp so unfortunately I would imagine your credit rating has already been affected.

Perhaps better that you havent been able to increase the overdraft in the long run. Hopefully the bank will accept your offer.

Good luck
Tonixx