Loan to cover overdaft

fishingpaul69

Hi,

Just wondering if anyone could help, my dad has a £800 overdraft with Yorkshire bank and was struggling with money so went to branch to see them, he is 72 years old and went on his own (silly man) they offered him a £1000 loan to get rid of his overdraft which he accepted, when he got home he realised after talking with me it was a bad move....as he was not aware of what he was doing (his memory is going). Is there anything he can do to cancel that loan or get it cancelled??? He went back to the bank yesterday and said there is nothing he can do but in a way he was sold something he didnt need and could not afford to pay back, also when he went back they offered him a credit card...are they completely dumb...HE HAS NO CASH arrrggghh....any advise would be excellent

thank you all in advance

poppasmurf_bewdley

I would have thought any reputable bank would just cancel the loan.

If they won't, he'll have to return the full amount of the money to them immediately (or not cash the cheque) and pay any charges due, which should be minimal.

If the bank gets stubborn, refer them to the banking ombudsman:
http://www.financial-ombudsman.org.uk/

Apples2

It should be possible to cancel the loan but there is still an issue with he overdraft.
I'm not sure what other option the bank could have proposed. £1,000 is the minimum loan amount.

He could have cleared his overdraft and made a £200 overpayment on the loan in the first month.

The bank could (and might have already) withdrawn his overdraft facility.

bsms1147

fishingpaul69 wrote: »

Hi,

Just wondering if anyone could help, my dad has a £800 overdraft with Yorkshire bank and was struggling with money so went to branch to see them, he is 72 years old and went on his own (silly man) they offered him a £1000 loan to get rid of his overdraft which he accepted, when he got home he realised after talking with me it was a bad move....as he was not aware of what he was doing (his memory is going). Is there anything he can do to cancel that loan or get it cancelled??? He went back to the bank yesterday and said there is nothing he can do but in a way he was sold something he didnt need and could not afford to pay back, also when he went back they offered him a credit card...are they completely dumb...HE HAS NO CASH arrrggghh....any advise would be excellent

thank you all in advance

Depends on how much the loan is costing compared to how much the overdraft is costing. Many banks might charge around £75 a month for an overdraft like that, or £900 a year. In that case unless the loan's APR is above 90% (which it won't be) the loan sounds almost sensible. If however the overdraft costs little to nothing, then of course that's totally different.

jonesMUFCforever

Until we know how much they charge in interest and fees for the overdraft we cannot advise whether the loan option is good or not.


I would have thought in treating their customers fairly that they would have worked out that the loan would be cheaper for OP's father but we need the figures to confirm.


One other thing that OP may want to consider NOW for the future is perhaps obtaining a Power of Attorney/3rd party access so that he can continue to act on his behalf if his health deteriorates.

CLAPTON

fishingpaul69 wrote: »

Hi,

Just wondering if anyone could help, my dad has a £800 overdraft with Yorkshire bank and was struggling with money so went to branch to see them, he is 72 years old and went on his own (silly man) they offered him a £1000 loan to get rid of his overdraft which he accepted, when he got home he realised after talking with me it was a bad move....as he was not aware of what he was doing (his memory is going). Is there anything he can do to cancel that loan or get it cancelled??? He went back to the bank yesterday and said there is nothing he can do but in a way he was sold something he didnt need and could not afford to pay back, also when he went back they offered him a credit card...are they completely dumb...HE HAS NO CASH arrrggghh....any advise would be excellent

thank you all in advance

without the facts it difficult to say much

however there are loads of posts on these boards complaining that banks won't convert an OD to a loan

YorkshireBoy

jonesMUFCforever wrote: »

One other thing that OP may want to consider NOW for the future is perhaps obtaining a Power of Attorney/3rd party access so that he can continue to act on his behalf if his health deteriorates.

Yorkshire Bank have an 'Agent To Operate' facility on their accounts. I have it for my father, although it only allows me to deal with his business in branch.