Overdraft increase declined

krazyk

Hello,

Because of an error I will not get paid for a few weeks, this will leave me short for this period and will mean going over my overdraft limit (of £250, first £100 interest free) by £500 (possible less depending on my VAT bill). I've told cahoot all the specific details (dates when I'll go over £250 and for how long plus dates when I will pay into my account again) but they have come back saying my "overall limit cannot be amended at this time and will remain the same". I have a CC with them and offered to have that decreased but still they won't help. I've requested the increase for these few weeks only.

Is there anything I can do? Or will I have to go overdrawn and get charged to the hilt. I thought telling my bank all this way in advance would mean they would at least help in someway but they are going to do nothing and thus charge me when I go over my limit.

I've been with cahoot for many years and this is the first time I've had an issue with them.

Krazy K.

withabix

What was the error?

Why can you employer not give you an advance?

LittleVoice

Mention of a VAT bill suggests this is someone who is self-employed - but the late payment could cut that bill perhaps rather than increase it - depending on how it was rendered. In any case if VAT was to have been paid, funds for it should have been put to one side awaiting paying it over.

Perhaps OP could take out a loan from Cahoot or elsewhere - might be cheaper than facing costs relating to OD.

krazyk

Yes I'm self employed and yes I hope the non-payment will cut my VAT bill but no I don't want a loan, horrible horrible things. Shouldn't the bank help out?

Krazy K

LittleVoice

An overdraft isn't a right and they might also be looking at how long you have banked with them and whether they have confidence in your estimates of receiving payments. As cahoot is an internet bank, it's more difficult to sort things out than when you have a branch you can go into and see a human being!

You can look at an overdraft as a type of loan - though it's more flexible. Perhaps you could make use of your CC to help keep you going. Do you have £500 available for a cash withdrawal? I know that is going to incur a cash advance charge and interest but it's probably cheaper than the charges you would be faced with.

belfastgirl23

I'd spend as much as possible on CC instead...

dunstonh

Personally, when it comes to business accounts I think the "conventional" banks are better and more flexible.

Telephone/internet banks dont have the staff that understand businesses. The direct banks have always wanted to cherry pick the low maintenance accounts and business accounts are not normally that.