How do I pay off overdraft after switching?

richdeniro

So I switched to HSBC from Barclays in July.

My account was just over £500 overdrawn at the time of the Switch and Barclays closed my account, I got the letter confirming the switch and a statement showing I was overdrawn still. My HSBC account was opened with a £0 balance.

I called Barclays last week to ask how to pay my debt to them, they said just do a bank transfer to your old account.

I did that and it just got re-directed back into my new HSBC account.

mgdavid

Call Barclays again, tell them what has occurred, and ask the question again.

pinkdalek

You will need to speak with Barclays see if you can set an arrangement to pay off the outstanding overdraft you have with them, as any payments you make to the old account will automatically re-direct to your new bank for the next 3 years.

I am sure they will have had this happen before, afterall they are a rubbish bank and many people switch away from them...:rotfl:

jonesMUFCforever

Was this a full or partial switch?
If it is a full switch then the new bank now is overdrawn and the old bank is closed?

richdeniro

jonesMUFCforever wrote: »

Was this a full or partial switch?
If it is a full switch then the new bank now is overdrawn and the old bank is closed?

Full switch as far as I was aware - I went into HSBC and told them I wanted to switch to them, thought they would handle the rest?

The new bank is not overdrawn, it started off with a £0 balance.

slink85

Barclay's should provide an alternative sort code and account number for one of their holding accounts, for you to make a payment, using you closed account details as a reference, so the payment can be allocated correctly.

Sounds like you just got someone on the phone who was confused, they will have a process in place to deal with this, its not like your the first person who has switched without the new bank taking on the overdraft.

I'd be concerned about the time scale though, recently I switched from Lloyds and they only give 30 days to bring the 'closed' account in to good standing after a switch.

Just a minor point, but the Barclay's account will still be active, they don't close them until the overdraft is repaid, and which point they will send a final ststement.

slink85

richdeniro wrote: »

Full switch as far as I was aware - I went into HSBC and told them I wanted to switch to them, thought they would handle the rest?

The new bank is not overdrawn, it started off with a £0 balance.

They have handled the rest, forget about the full / partial switch, its nonsense.

HSBC just haven't given you an overdraft, or one they have given you is too low to cover your existing overdraft.

They can only move the overdraft, if they have accepted you for one.

If you used the 'switching service' then your old account is pending closure, and will be closed once the overdraft is repaid.

jonesMUFCforever

They have handled the rest, forget about the full / partial switch, its nonsense.

Which part of this is nonsense??

richdeniro

slink85 wrote: »

They have handled the rest, forget about the full / partial switch, its nonsense.

HSBC just haven't given you an overdraft, or one they have given you is too low to cover your existing overdraft.

They can only move the overdraft, if they have accepted you for one.

If you used the 'switching service' then your old account is pending closure, and will be closed once the overdraft is repaid.

HSBC gave me a £2,000 overdraft limit which was agreed when I opened the account, the first time I logged into my account it had the 2k overdraft limit there but my account was just £0.

colsten

richdeniro wrote: »

HSBC gave me a £2,000 overdraft limit which was agreed when I opened the account, the first time I logged into my account it had the 2k overdraft limit there but my account was just £0.

Overdrafts never get transferred. You have to make you own arrangements to settle the overdraft on the old account. The advice on how to do that you got from Barclays is obviously daft. Raise a complaint with them. http://www.barclays.co.uk/ContactUs/Barclayshowtocomplain/P1242558122337.

Make sure they don't charge you for using the overdraft after you contacted them to ask how to settle it.

YorkshireBoy

colsten wrote: »

Overdrafts never get transferred. You have to make you own arrangements to settle the overdraft on the old account.

I seem to remember you're asked (during the switch section of an account application) if you want to use any overdraft facility granted to settle any overdraft on the old account? I assumed the new bank would then deal with this (as part of the CASS), otherwise why would they ask the question?


EDIT: From simplerworld...

The whole process will be handled by the bank or building society you are switching to. This means you can stay stress-free while they transfer your incoming and outgoing payments, transfer your balance*, close your old account and confirm your switch is complete.


* Overdraft transfer subject to your credit status


http://www.simplerworld.co.uk/Pages/How.aspx