Refused overdraft due to pay day loans?

coldhandoff

Tell her to call up instead. The branch probably just saw the entries on the account and didn't bother going through an application.

meer53

coldhandoff wrote: »

Tell her to call up instead. The branch probably just saw the entries on the account and didn't bother going through an application.

The answer will still be no. Mums do stupid things for their kids it seems, including taking out PDL's ! Not something i would ever do i have to say.

The bank won't know whether she'll do it again will they ? If the son doesn't pay, she's the one who owes the money at the end of the day.

Ben8282

pandaplops wrote: »

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.

I was just wondering why she was never offered an overdraft facility?

I was also wondering why she took out the payday loans rather than thinking about asking for an an overdraft, taking a credit card cash advance or something rather than an expensive payday loan.

debtfreetee

It shows how ill informed people are about finance, well she will suffer the consequences for ignorant decisions, poor thing

stclair

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.

Im surprise they told you the reason for the decline. Its normally policy not to disclose why the applicaton was declined.

Was an application actually proccessed?

dalesrider

Ben8282 wrote: »

I was just wondering why she was never offered an overdraft facility?

I was also wondering why she took out the payday loans rather than thinking about asking for an an overdraft, taking a credit card cash advance or something rather than an expensive payday loan.

Well if you read the thread, you would have realised that OP did not take the loans, out her son did. But used her account to pay into.

I guess applying for O/D would have taken too long to resolve the shortfall of cash, if that option was ever looked at.

These days a bank won't offer you a o/d just for the fun of it. Unlike before.

meer53

stclair wrote: »

Im surprise they told you the reason for the decline. Its normally policy not to disclose why the applicaton was declined.

Was an application actually proccessed?

If i decline any lending, we now have to give a reason. Never used to but our procedures now say that we have to explain why we have made the decision. If it's due to seeing PDL's on an account, we have to tell the customer. Obviously we still can't advise about info on a credit file, but anything else we can tell the customer.

Not sure about whether all bank are now doing this ? The change happened about 3 or 4 months ago.

pandaplops

dalesrider wrote: »

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.

She did explain the situation but of course as somebody said it's just her word they have. She just wanted to know if this was normal procedure after her many many years of custom at the bank. We know pay day loans are bad news, but not this bad news.

A lesson learned for all concerned.

chambta

If the system pre-assessed her for the limit to be applied to her account then they could have done so. There's no blanket policy to restrict lending where payday loans are apparent BUT their recent use when someone applies for a loan/mortgage is almost certain to cause an immediate decline.

Overdrafts are slightly different in that there is not always an external credit check carried out.

stclair

I think in this instance the op or who ever should have applied via lending so that they was credit scored as has chambta has said there is no policy in place to instant decline the pay day loan crew.