ISA with Natwest showing overdraft

steve1809

Hi,

I have an ISA with Natwest which is now showing a negative value of £-510.00. They are now requesting this full blance to be repaid immediately.......No sure why it is showing a negative value as I was not aware that you could have an overdraft on an ISA account. The account showed a credit which I withdrew as IU needed the cash at the time but now the account shows a £-510.00 balance.

Is this something that they can enforce as I beleive that you are unable to become overdrawn on an isa account?

At the time I withdrew the £510.00 the balance obviously showed a credit balance of £510.00.....

Any advice would be appreciated on this......I am thinking about writing to the bank asking them to explain themselves.

McKneff

Well if you are sure that there was a credit balance of £510 and you only took £510 out then somebody else has taken it out to.

Can you look at the online statement.

This £510 has obviously gone out twice, you need to see the dates.

Why not look online or just ring them.

IrishGypsy

Usually this would occur because an advisor has incorrectly applied a credit to an incorrect savings account, realised the error and then corrected the balance. But in the interm, the savings account holder has gone... "HELLO money!", withdrawn it and then the fraud team apply a temporary OD to have the funds removed and reapplied to the correct owner. Thus, creating a negative balance.

Can't say that's the reason why in this instance, but it's usually the most common reason for an OD on a savings account!

Just noticed this line from the OP:

The account showed a credit which I withdrew as IU needed the cash at the time but now the account shows a £-510.00 balance.

Sounds to me exactly like my scenario above and he withdrew the money knowing full well it wasn't his...

epm-84

steve1809 wrote: »

At the time I withdrew the £510.00 the balance obviously showed a credit balance of £510.00

Was it cleared funds? You hadn't recently paid in a cheque for £510 or anything that may not have cleared.

madgagoo

IrishGypsy wrote: »

Sounds to me exactly like my scenario above and he withdrew the money knowing full well it wasn't his...

Or it could be a cheque that was paid in and available on T+4 but then returned unpaid before T+6.

IrishGypsy

madgagoo wrote: »

Or it could be a cheque that was paid in and available on T+4 but then returned unpaid before T+6.

True, but most people would mention that they desposited a cheque and withdrew it (and not mention that it showed a credit as if they didn't know where it came from).

Hopefully you're right tho.

zxspeccy

It would be quicker to give the bank a ring as they should be able to give you an answer straight away by just looking at the entries on the account.

It could have been a misapplied credit to your ISA, and the bank has every right to debit you if it is. If this is spotted on the same day then they may not even tell you about it. If the credit was applied several days ago then they may write to you to give notice that they are going to take the money back.

I would say it is unlikely to be a cheque in the process of clearing, and ultimately being unpaid, as I don't think it is possible to pay cheques directly into an ISA. ISAs only accept cleared funds made electronically (eg. transfers).

You surely must know whether the £510 balance was yours or not, if it was then it is a Bank error and they will correct it, and you will have nothing to worry about. If it was not your money then pay the bank back as soon as possible, as spending money that you are aware does not belong to you is fraud.

le_loup

zxspeccy wrote: »

as I don't think it is possible to pay cheques directly into an ISA. ISAs only accept cleared funds made electronically (eg. transfers).

All that you say is true apart from this weired statement.

le_loup

steve1809 wrote: »

They are now requesting this full blance to be repaid
<>
I am thinking about writing to the bank asking them to explain themselves.

Now that is a weired juxtaposition.
I think you need do more than just think about it!

chambta

I can't see any other explanation other than that mentioned above - a cheque has bounced after the funds have been withdrawn.

opinions4u

A list of transactions should explain what has happened.

Get one. Take a look. Work it out.

Don't write to them. Call them.