Overdraft after account due to close

Ed-1

Does anyone know what would happen if a current account together with overdraft limit is due to be closed (e.g. as a result of a switch or if the bank has advised that they are to close the account) and on the date it is due to close there is still an overdrawn balance so the account can't close but the overdraft limit remains in place and the overdrawn balance remains following this date - are there any repercussions in terms of credit report status codes etc. for not settling an overdraft swiftly in these circumstances?

le_loup

You can't close an account with an overdraft.

grumbler

MSE article: 7-day bank switching era begins: Full Q&A

Can I switch if I'm overdrawn?
Yes. What you'll need to do with your old overdraft will depend on whether your new bank or building society can provide facilities to help you pay off any overdraft, which will be subject to the new bank's normal lending criteria.
If your new bank can't help with your overdraft, you must make separate arrangements to repay your old bank or building society what you owe.
But there are no exact rules in place about switching when you're overdrawn, what happens will vary by provider.

Ed-1

le_loup wrote: »

You can't close an account with an overdraft.

This is hypothetically speaking and I said it can't close but that it would be due to be closed. You can obviously switch an account that is overdrawn and therefore it would be due to close on the switch date and a bank can decide to close an account and request repayment of the overdrawn balance at any time it wants, overdrawn or not.