Student Account changed to Graduate Account - overdraft cancelled?

bvspence

Any help would be appreciated as my head is reeling a little from all the information I've just received.

To give you a bit of background, I have recently graduated in June 2013 from my University course. I had a student account with Lloyds TSB and an overdraft of £1500. I had used all but 30p of my overdraft, and haven't actually touched the account since March 2013.

I moved back home and (stupidly) forgot to update my details with my local branch. Today I got a message from the new tenants of my flat saying that the bank had been sending me letters. When I got in touch with Lloyds, they told me that I now have a Graduate account with them, in which I am £1499.70 overdrawn, and I have NO overdraft. I am so confused as to why this is, as surely if the account changed I would still be eligible for the overdraft. I am currently unemployed and only making about £60 a week from childminding. They have kindly removed my overdraft charges (had racked up £200 over the last 2 months) and I am now going to pay back £30 for the next 6 months.

I am just so confused as to why they removed my overdraft. It is my own fault for not changing the address but I just don't understand why this has happened in the first place. I'm pretty shaken up about the whole thing, so if ANYONE has any advice it would be greatly appreciated. Have I just fallen into one of Lloyds's traps or am I entitled to keep my overdraft?

shortcrust

Overdrafts are really meant for short term borrowing and can be withdrawn at any time with the bank demanding immediate repayment. Regardless of the move to a graduate account I think most banks would withdraw the facility if the account was left dormant for a few months.

Important to remember that no one is entitled to credit. You've done well to get a repayment plan out of them and the fees cancelled.

BugsyBrowne

Lloyds in very very rare cases terminate your overdraft and will normally grant them every 12 months and will normally just review them every 12 months.

Leaving an account dormant with no money going in scraps what I've said above.

CLAPTON

It is usual for a student a/c to be converted into a graduate a/c and to keep the OD.

It's impossible to say exactly what happened in your situation but having no activity on the a/c was a bad idea and maybe not responding to their letters wasn't well received.

you in any event have no entitlement to an OD which can be withdrawn at any time.

hopefully you can get a job and be able to open a bank a/c elsewhere with an OD facility

pmduk

You were no longer a student and no income coming in. That would be a concern for the bank. Particularly if you were ignoring their communications. Overdrafts aren't permanent, possibly one of the letters you missed may have been notifying your of it's expiry.

Obviously they weren't to know you hadn't bothered to tell them you'd moved. The good thing is that you're not ignoring the problem.

It isn't a Lloyds trap, nor are you entitled to keep an overdraft, unless there is some guarantee of an overdraft attached to your account.

dawyldthing

i think its the not using it as your normal account that has caused them to take it away as they want to make sure you pay it within a year or 2 of you graduating

bvspence

Thanks for all the replies, obviously me just being an idiot and now facing the consequences, definitely learnt my lesson for next time.

CLAPTON

bvspence wrote: »

Thanks for all the replies, obviously me just being an idiot and now facing the consequences, definitely learnt my lesson for next time.

no, not an idiot, as you weren't to know how they work

anyway best of luck getting a job