Natwest Closed my Bank Account

Gibblet

Hey!

So, Natwest closed my Bank Account...just got notified by phone, they won't tell me why because they said they aren't legally required to do so and they're just seeking to end the commercial relationship.

I had an overdraft with them and this is the first time (because of moving) I've had to use it, one transaction took me over £4 to £4.70 and unbeknown to me I've been paying £4 per day for each day it was over. It seems they said they would close it after I confirmed I couldn't pay the £400 over draft and fees immediately. I know have 60 days to get my account in order and they want my fees and over draft paid off in full on my pay day.

Firstly, this of course causes great hassle to me that I no longer have a Bank Account (luckily I do have an alternative with a Building Society) but also, I simply can't afford to pay back that amount in one go.

Just a bit in shock at the moment, never had a bad dealing with a Bank before. What can I do?

John1993_2

You can ask them for more time to pay, and realistically there's not much that they will be able to do as long as your offer seems reasonable. I'd suggest that you work out what's affordable, and propose that, and then get on sorting out a new bank account (if youo want to have one in addition to youor BS account).

To be clear, you are saying that your overdraft limit was £4? That is a surprisingly small facility.

Gibblet

Just to clarify, the OD is £400, I went £4.70 over that and have been charged £4 per day for the past 26 days. Is it best to write a letter into the Bank?

Sinhanada

You can certainly write to them, but with them closing the account I seriously doubt that they would reopen it for you. With regards to their charges I know from personal experience that they write to you to inform you that you have gone overdrawn and they will be taking charges. They also have a feature where you get text alerts through to your mobile phone. This though will not help in your current situation.

My advice would be to open up a basic account with another bank which you can set your direct debits up on. Write to Natwest and explain your hardship and make an offer to pay. Make it realistic and look to have it cleared as quickly as possible

Gibblet

Natwest Offshore don't offer text alerts and they only send a letter at the end of the month stating the charges due to the next month so, until I got the phone call, I had no idea.

The advertise a £10 buffer and that's what I thought I had on my account - Apparently not.

I certainly don't want to keep my account open I just don't want charges building up daily while I try to pay it back as fast as I can.

Dirk_Gently_2

Is the £10 buffer before the overdraft?

i.e. if you don't have an overdraft then you can go upto £10 overdrawn without being charged, but it doesn't apply after the overdraft - you don't effectively have a £410 overdraft. Think of the £400 overdraft as a £10 free overdraft and then a £390 interest-bearing overdraft on top of that.

You could phone up the bank and explain the misunderstanding - but this far down the line I'm not sure how sympathetic they'll be.

Sinhanada

If the account is closed there should be no further charges added to it, but it is certainly worth asking for the clarification in the letter you send.

Gibblet

Dirk Gently - That makes so much more sense and should have been blindingly obvious to me.

I know the account won't be reopened and to be honest, with their level of service outside of this issue, I don't want it to be. If I have 60 days to make alternative arrangements for my account, surly they should allow me to pay the OD and fees within that time frame?

StuC75

When was your last pay day? you imply that went over the overdraft, and for the last 26days you have been charged - implying that you haven't put it back in order within that time - So were you not paid last month? Is that account always at -£400??

John1993_2

Gibblet wrote: »

Just to clarify, the OD is £400, I went £4.70 over that and have been charged £4 per day for the past 26 days. Is it best to write a letter into the Bank?

For your offer to pay back over time, yes, send it by recorded delivery, and keep a dated copy for yourself.

John1993_2

Gibblet wrote: »

If I have 60 days to make alternative arrangements for my account, surly they should allow me to pay the OD and fees within that time frame?

Yes, they very likely will. If you send them a sensible and reasonable payment plan, and make it clear that you simply don't have the ability to pay it all back in one lump now, then they have no reason to do much else than accept it.