HELP!! Overdraft suddenly been reduced

Trajal

gizmo111 wrote: »

I would open a new account elsewhere with no overdraft and trnasfer everything to it - then pay the £80 per month just as you would with any other debt. They couldeasily change their mind and withdraw the facility on any given payday, leaving you in a bit of a pickle.

This. Do it, don't discuss it, just do it, incredibly important!

Also an AP WILL negatively affect your credit file. However, don't raise it just yet, because they record calls so you can ring them up later down the line, complain aboutyour file having been damaged and explain that you were told the wrong thing.

Upon investigation they will be able to see that's the case and will then have to remove your AP from your record, so that's actually a bit of a victory.

KT2802

Trajal wrote: »

This. Do it, don't discuss it, just do it, incredibly important!

Also an AP WILL negatively affect your credit file. However, don't raise it just yet, because they record calls so you can ring them up later down the line, complain aboutyour file having been damaged and explain that you were told the wrong thing.

Upon investigation they will be able to see that's the case and will then have to remove your AP from your record, so that's actually a bit of a victory.

If I do move everything over to another account though could they not recall the whole overdraft?

Just been doing some research around AP and there are varying views around whether it is as bad as having a late payment/default/CCJ etc.

Thanks for advice. What a mess

gizmo111

Gizmo - I think I might do this although I am concerned that this may then prompt them to reduce the entire thing very quickly. I have been told that they will send me a letter outlining the agreement so I would hope that this is some sort of contract where by they can't suddenly change their mind without giving notice, but I may be wrong.

it'll still be a contract for an overdraft, which they can call in anytime in full.
If they cancel it when you have a new bank account - so what you just pay what you can afford same as any other debt, and they cant get their handson your income to offset.

happy_bunny_2

APs stay on your file for 6 years after the account is settled. Not as bad as a default but really not good. So if they leave it on for 2 years then you close your account it will be there for 8 years.

Defaults drop off after 6 unless a CCJ is obtained.

Some folks have APs on their file for 10 years plus.

eyeopener2

Don't worry about things before they happen, it's pointless.

Yes an AP marker on your file isn't great but to say it's as bad as a ccj is just daft. It isn't, it never will be. Yes it will hang around your file for a while but that is something you may have to live with.

However, you haven't got an AP marker yet, and you may not get one so stop worrying.

Deal with it if it happens and then complain, complain,complain!

KT2802

Thanks all. I spoke with Step Change this afternoon and am now thinking about the best way to move forward with all of my debt. My next plan is to go and open another bank account elsewhere.

Thrugelmir

KT2802 wrote: »

Just been doing some research around AP and there are varying views around whether it is as bad as having a late payment/default/CCJ etc.

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Avoid a CCJ. Your credit profile isn't great so an AP isn't going to do much damage at the current time. Use this as your light bulb moment. Maybe bad at the moment. However it is repairable. All down to you though. Time does heal.

gizmo111

This may help you to decide on bank account without overdraft

https://forums.moneysavingexpert.com/discussion/4575513

Thrugelmir

gizmo111 wrote: »

I would open a new account elsewhere with no overdraft and trnasfer everything to it - then pay the £80 per month just as you would with any other debt. They couldeasily change their mind and withdraw the facility on any given payday, leaving you in a bit of a pickle.

Lenders will increasingly credit check transferring their accounts for this very reason. The noose is being tightened on multiple banks accounts. As for the majority of people one current account is enough. With a high % of activity now conducted online.

gizmo111

Thrugelmir wrote: »

Lenders will increasingly credit check transferring their accounts for this very reason. The noose is being tightened on multiple banks accounts. As for the majority of people one current account is enough. With a high % of activity now conducted online.

Hardly at the application stage though - virtually everyone is offering incentives to switch and match overdraft limits.