Overdrafts

Chrissiew

If I were to put enough money into my account to clear my overdraft do the bank automatically stop the overdraft facility? Or would they ask me if I still wanted it or not?

innovate

You are probably a lot more likely to retain your overdraft facility if you clear it and stop using it than if you constantly live in the overdraft.

MoneySaverLog

It's usually a ongoing short term facility, which will always be repayable on demand. In theory they could stop it at anytime and also ask that you repay it immediately.

YorkshireBoy

Chrissiew wrote: »

If I were to put enough money into my account to clear my overdraft do the bank automatically stop the overdraft facility? Or would they ask me if I still wanted it or not?

It depends!

If there's a history of overdraft abuse (ie unauthorised use fees etc), or you've been living in it for some considerable time (never returning to credit), then yes it's possible they'd pull the facility.

Do either of the above scenarios apply?

Chrissiew

YorkshireBoy wrote: »

It depends!

If there's a history of overdraft abuse (ie unauthorised use fees etc), or you've been living in it for some considerable time (never returning to credit), then yes it's possible they'd pull the facility.

Do either of the above scenarios apply?

Unauthorised fees no never, never returning to credit and living off it yes for about 2 years now

YorkshireBoy

Chrissiew wrote: »

Unauthorised fees no never, never returning to credit and living off it yes for about 2 years now

Less chance of them pulling the facility if the account has being seeing*, and will continue to see, monthly salary credits going in.


* Even if they did not return you to credit.

jonesMUFCforever

I agree - if you play by the rules (and they get interest and charges) then they will not pull the facility as you are making them money.

Chrissiew

jonesMUFCforever wrote: »

I agree - if you play by the rules (and they get interest and charges) then they will not pull the facility as you are making them money.

Yea they charge me just over £30 a month for the overdraft and £15 for the ultimate reward account. The overdraft is £2100 and my husband should be getting around £2500 and I would just hate it to go in the bank and they take the overdraft leaving us with £400, the money has been ear marked to pay some rent arrears we got into.

YorkshireBoy

Chrissiew wrote: »

Yea they charge me just over £30 a month for the overdraft and £15 for the ultimate reward account. The overdraft is £2100 and my husband should be getting around £2500 and I would just hate it to go in the bank and they take the overdraft leaving us with £400, the money has been ear marked to pay some rent arrears we got into.

I'm not passing judgement here, but have you thought about whether, with your ongoing financial struggle, this is money well spent?

JuicyJesus

jonesMUFCforever wrote: »

I agree - if you play by the rules (and they get interest and charges) then they will not pull the facility as you are making them money.

This is not a definite. There does come a point where even with the interest income, the amount of money they're making doesn't justify the risk of a customer who lives in their overdraft.

The only real way to avoid it is to not live in your overdraft. They retain the right to call it in at any time.

Chrissiew

YorkshireBoy wrote: »

I'm not passing judgement here, but have you thought about whether, with your ongoing financial struggle, this is money well spent?

No it's not money well spent and I guess the best thing I could do would be to pay the overdraft off and close the account but at the moment I'm unable to do that.