Do banks have to give notice before removing overdraft?

Markoo_2

Can anybody confirm weather banks have to give notice ( im with lloyds bank if it makes a difference) before they stop your overdraft? or can they stop it at any moment without any notice?

PeacefulWaters

No notice required.

mwarby

As I understand it they are repayable on demand. I doubt they have to give notice, but I think they normally would.

If you are concerned about your overdraft being removed, I would consider opening a new unconnected bank account (different bank)and having your wages paid in there. You can then use new account to pay bills etc, and transfer some money each month to clear overdraft.

Markoo_2

Well basically i have a £2000 overdraft which ive had for a couple of years and lived pretty much fully overdrawn on a weekly basis for over 12 months, I have however recently just cleared the overdraft so i am no longer in debt, However I Have recently become unemployed and i am going to have to go into this to survive until i get another income. If they stop it now ill be in a right mess and i don't want to take all the money out as cash because ill have large monthly charges.

I guess i have no choice but to hope they don't stop it, F@&k lol

Archi_Bald

Check what your T&Cs say but living from an overdraft is very risky whether they give notice or not.

PeacefulWaters

Careful about increasing an overdraft balance on an account you're not funding with a salary credit.

That's a recipe for the bank calling in the overdraft.

Moving £1000 to a savings account and then straight back to the current account each month may fool the system. But don't count on it.

10pence

As already mentioned overdrafts are repayable on demand, that is generally, banks will give you a thirty day notice period to repay the overdraft before it's removal.

These removals are normally triggered by the account conduct; good example is the account goes overdrawn and no credits are forthcoming, due to this lack of showing the debt can be repaid the bank can trigger the repayment demand.

PaulW922

It is very unlikely you would be told to repay immediately - you would get notice except in exceptional circumstances. The exception may be if the overdraft had an expiry date on it, but I am not sure many do these days.

MABLE

My partner has just been advised by Lloyds that due to non use of overdraft they are reducing it by £100 to £400 and given him 1 months notice. However it goes on to say if he feels he will be using the account more they are willing to leave at the former limit.

isaisababy-

I would have thought they'd need a good reason for completely removing the overdraft with no notice - continuous going over your limit, no money at all coming in etc.

I was in a 3k overdraft for about 2 years constant, and I was worried they would take mine away from me as it is classed as a short term lending option, but because I used the account regularly and kept within the limits, I was fine.

Now cleared my overdraft off - got a loan from Zopa after reading about it on here.

delstar77

I had an overdraft of £1000 back in 2005 with Halifax bank, I went to get a loan from them and was told that an overdraft would be a better bet, on their advice I did this and got the overdraft increased to £5000. Around a year later they gave notice they were reducing it back to £1000 and put me in severe hardship, I tried appealing this but they refused to help. In effect this was mis-sold to me as if I had taken the loan which was pre-approved this wouldn't have been an issue. I complained however they sold it to several different companies under several different names and by the time I had managed to advise the situation it had moved elsewhere. Finally it ended up at Cabot and then Marlin. As my situation worsened over the years I agreed a set amount with Cabot which I kept up with, then out of the blue they transferred it to Marlin, under a different number and under Lloyds. Naturally I queried this and they did not respond neither did Cabot who returned my payments after they were paid. I have now ended up with a court date for Northampton advising I have not responded, they claim they sent me two emails of which I received neither. Does anyone have any further help for me as to what to do now.