Closing overdrawn accounts

robfosters

Is this possible?

I am currently out of work and wish to close my account to stop all charges and then come to an arrangement with the bank to pay it off over time. Does anyone know if this is possible? They say no, but I don't know whether to believe them or whether they are trying to fob me off. Bank is HSBC.

atypicalblonde

Hi as far as I am aware you cannot close and overdrawn account. Best bet is probably to contact them and explain the difficulties you are facing in repaying it, and see if they can come to an arrangement with you. Best of luck

Crown

Hi and welcome,

The Bank will not close the account as you owe them money. What you should do is open a new BASIC bank account with another lender unconnected with any of your debt.

Once set up move all payemnts/outgoings to the newaccount and then write to the bank and tell them that you are having financial difficulties and request that they stop the charges. you will need to make then a offer of "token" payment that you can realistically afford until you are back in employment.

Take a look at nationaldebtline.co.uk for advice on this and copies of sample letters. If you have more debt than just your overdraft I would suggest you contact the CCCS who will be able to offer you a lot more advice on your options.

So in a way the bank are right that you cannot close the account but that doesnt stop you requesting them stop charges. I pay £1 a month on previous overdraft with ll interest frozen until I can afford to repay more.

Good luck

RAS

Hi

Once you have done that, go to the Bank Charges Board and learn how to reclaim athe bank charges that they have added to the account.