Refused overdraft due to pay day loans?

pandaplops

Hi, hopefully somebody can shed some light on this.

My mother has been with NatWest for many many years. No bank charges, no missed payments, nothing. She has been told her banking history with them is flawless basically.

She went in today to apply for an overdraft to be added to her account, but the same lady at NatWest then told her due to having pay day loans recently an overdraft isn't something they can give her.

Of course pay day loans are terrible but I didn't know they were this bad?

My mother is very worried, is this a normal thing for a bank to do? I've tried searching but I can't find anything.

Is the only solution to stop using the pay day loans?

Thank you.

BASFORDLAD

Yes indeed they can see it on your credit file now and see it as a streched financial committment. It was on the news a few months back

whatmichaelsays

Touching on a similar issue: http://www.guardian.co.uk/money/2012/jul/12/ge-money-refuses-mortages-payday-loans

CLAPTON

pandaplops wrote: »

Hi, hopefully somebody can shed some light on this.

My mother has been with NatWest for many many years. No bank charges, no missed payments, nothing. She has been told her banking history with them is flawless basically.

She went in today to apply for an overdraft to be added to her account, but the same lady at NatWest then told her due to having pay day loans recently an overdraft isn't something they can give her.

Of course pay day loans are terrible but I didn't know they were this bad?

My mother is very worried, is this a normal thing for a bank to do? I've tried searching but I can't find anything.

Is the only solution to stop using the pay day loans?

Thank you.

I would be much more concerned about my mother using paydayloans than I would be about her being refused a bank overdraft.

whyever is she getting these rediculous loans?

meer53

Using payday loans then asking for an overdraft rings huge alarm bells. It indicates your Mum is in financial difficulty.

pandaplops

Thanks for the replies.

In regards to why she's getting pay day loans and worrying about those, it isn't her who is getting them. My brother doesn't have a bank account so has took two pay day loans in the last month with my mother's permission. She didn't know it would do this though.

That'll be the last time then.

DCFC79

pandaplops wrote: »

Thanks for the replies.

In regards to why she's getting pay day loans and worrying about those, it isn't her who is getting them. My brother doesn't have a bank account so has took two pay day loans in the last month with my mother's permission. She didn't know it would do this though.

That'll be the last time then.

How olds your brother then ?
Why is he wanting pay day loans ?

Its financial suicide to have pay day loans and even worse when the loans are paid into someone elses account.

He oculd deny all knowledge of the loans and leave your mum to deal with it.

pandaplops

22. The pay day loans were an advance if you like on his wages, he asked me and others to borrow the money to him but it wasn't possible. It was a last resort on both occasions, but the original reason has been resolved and both pay day loans repaid. He's never used them before, doubt he ever will again.

And I doubt he would do that as he's still living with our parents!

MABLE

pandaplops wrote: »

Hi, hopefully somebody can shed some light on this.

My mother has been with NatWest for many many years. No bank charges, no missed payments, nothing. She has been told her banking history with them is flawless basically.

She went in today to apply for an overdraft to be added to her account, but the same lady at NatWest then told her due to having pay day loans recently an overdraft isn't something they can give her.

Of course pay day loans are terrible but I didn't know they were this bad?

My mother is very worried, is this a normal thing for a bank to do? I've tried searching but I can't find anything.

Is the only solution to stop using the pay day loans?

Thank you.

You mum should explain to them if they gave her an overdraft then should would not need any pay day loans.

dalesrider

MABLE wrote: »

You mum should explain to them if they gave her an overdraft then should would not need any pay day loans.

And one of the many reasons given for the mess this country got into was far too free and easy credit handed out by the banks...

I think even if the OP explains to the bank, it will not make a diffrence.
While I know it was for faimily. If he had defaulted the OP would have been paying off the loan for him.

meer53

MABLE wrote: »

You mum should explain to them if they gave her an overdraft then should would not need any pay day loans.

And you think the bank will believe her ? No chance. The loans weren't for her anyway !

They have no way of knowing who the PDL's were for, they were taken out in her name, they will go on what they can see.

I get this all the time at work, "but if you give me 10k, i can pay off all my credit cards and i'll be paying less !" Then off they go and spend it all again. Then they wonder why i won't agree a loan.