Account switching, whats happened to my overdraft?!

Wobjack

Hi All,

I was wondering if someone might be able to give me a bit of advice on something....

I recently switched bank accounts from Barclays to First Direct. Everything seems to have gone fine, my direct debits and standing orders have transferred but my Barclays overdraft hasn't....

With Barclays, I was £450 overdrawn, yet this has not appeared in my FD account which says I am £49 in credit. Its been over a week since they did the transfer and I'm wondering what's going on.

The reason I'm asking advice is that I'm wandering if Barclays have made an error and not transferred the overdraft? Is there a chance that they have just 'forgotten' about it? Have FD messed up?

I kind of don't want to ring either of them to ask just in case they HAVE forgotten or made an error? Is there a chance I may get away with this or are Barclays being sneaky by not transferring it and are going to slap me with charges later?

Any help or advice would be greatly appreciated!

YorkshireBoy

Overdrafts aren't transferred. You need to make separate arrangements to settle the Barclays overdraft debt...and quickly!

From the FD help files...

Can I switch my current account if I am overdrawn? Yes, and your new bank or building society may be able to provide facilities to help you pay off any overdraft, subject to their normal lending criteria. If this isn't the case you must make separate arrangements to repay your old bank or building society what you owe.

2 questions:

1. Have FD given you a similar sized overdraft facility?
2. What do Barclays say is your balance now? Either check online (if you still have access), via an ATM (if the old card still works), or ask them.

I am a little puzzled by your reluctance to get it sorted quickly, since if the Barclays account can't be closed you won't get your switch incentive will you?

dr_adidas01

They don't transfer overdrafts across, since you were £450 overdrawn you now owe barclays £450!! Am sure they will soon be chasing this debt you owe then, and if you don't pay it they will soon be putting a default on your credit files.

What made you think they would transfer a barclays overdraft across to First Direct account?

Wobjack

Ok guys, thanks for the help.

The letter from Barclays said they'd transfer all balances across, which I assumed meant negative balances too, and they didn't actually specify anything about overdrafts.

My FD account has an overdraft facility of £500 but to be honest, I'll get a 0% balance transfer card to pay the old debt off.

grumbler

Transfer it manually by paying £450 from FD to your old Barclays account.

Archi_Bald

Wobjack wrote: »

I kind of don't want to ring either of them to ask just in case they HAVE forgotten or made an error? Is there a chance I may get away with this or are Barclays being sneaky by not transferring it and are going to slap me with charges later?

Don't stick your head in the sand or try outsmarting a bank - you owe Barclays £450, plus any overdraft charges that will be clocking up as we speak. They won't forget about you and your debt just because you stop using their current account. Ring them now to sort it out

No point ringing FD about the Barclays debt as it has nothing to do with them. Although you will have a small automatic overdraft at FD which might help you settle your debt at Barclays.

YorkshireBoy

Wobjack wrote: »

My FD account has an overdraft facility of £500 but to be honest, I'll get a 0% balance transfer card to pay the old debt off.

With £100 for switching and a £250 interest free overdraft...why?

Money-Saving-King

YorkshireBoy wrote: »

With £100 for switching and a £250 interest free overdraft...why?

The op would till owe another £100 & I can imagine the £100 bonus takes a while to arrive.

YorkshireBoy

Money-Saving-King wrote: »

The op would till owe another £100 & I can imagine the £100 bonus takes a while to arrive.

Barclays charge a fee per day for the overdraft, so FD's debit interest only on £100 (or £200 should the incentive take a short while to be credited...but it's usually within 8 days or so?) would be very small in comparison. Miniscule in fact?

OP will pay a 4% fee on his "balance transfer card" (for the requisite 'money transfer').

And almost everyone can find £100 can't they?...even if they can only find it for a short while from salary until the bills are paid.

Mr_Goodkat

OP you won't have got away with it!


Barclays will not allow an account to be closed with a negative balance and no account closure means no switch incentive from FD.


Your Barclays account will also be accruing the daily fees as long as it in place.


You need to pick up the phone speak to Barclays and ask them to calculate the total outstanding overdraft including any daily charges to be added as of today.


You should then pay the total with your FD debit card as you have £49 in credit with FD plus have a £500 overdraft, £250 of which is interest free so you will only pay daily interest on the overdrawn balance over £250.


You then need to work on ensuring you stay no more than -£250 with FD going forward to stop having to pay interest in the future.


For such a small OD balance and the amount you will pay on the interest bearing part with FD it is not really worth a super balance transfer credit card (if you can get one) and paying a 4% charge for the privilege.