Advice

Debs63

Can anyone help the bank have allowed my 18 year old son who only earns 400.00 per month and studies the rest of the time a 5000.00, O/D with extortionate rates do they not have a financial obligation to not allow this????

vlad

Are you sure its £5000 and not £500? Many student accounts do give a £1200 o/d but I've never heard of £5000 whatever the rate. Of course he realises that he doesn't have to spend any of it?

midnitegremlin

It is very very easy to close an overdraft.
My own banks are Natwest and First Direct. Nat West you must do online (possibly in branch) and you request a new ammount, which can be 0.

First Direct is a quick phone call, they reduce it by anything from £10, in multiples of 10.

If the banks SHOULD be doing this is another debate of course, as with massive credit card limits. But it can be so easily dealt with.

ViolaLass

It seems surprising that they would do this but as the others said, your son doesn't have to spend the money.

sourcrates

Debs63 wrote: »

Can anyone help the bank have allowed my 18 year old son who only earns 400.00 per month and studies the rest of the time a 5000.00, O/D with extortionate rates do they not have a financial obligation to not allow this????

The important question is, has he spent any of it ?

If no, then either ring or secure message the bank, and get them to reduce it down to a more manageable level.

If he has used it, don't let him use any more of it, and still do the above.

andyfromotley

That would be very unusual for a bank to give an 18 yo that size of od, particularly with that income.

I would enquire as to why this has come about, but it may be that your son has been less than truthful with them?

It also begs the question what on earth has he spent such a large amount on?

bouncydog1

Would be best to set everything out properly. Is your son now in debt, having spent the money? If the overdraft hasn't been used, your son can contact the bank and ask for it to be removed from the account. As he's 18 he is an adult so although you are rightly concerned, the bank won't deal with you. Hope you get to the bottom of it all.

midnitegremlin

ViolaLass wrote: »

It seems surprising that they would do this but as the others said, your son doesn't have to spend the money.

In the bad old days, circa 1997/1998 when I was starting Uni banks would pay students to open accounts, with big interest free (until graduation) overdrafts, which then had rates of interest put on in stages, ie only on £500 in the first year after graduation, £1500 the second then on everything after the third, or whatever.

That said, I've heard of others, one called "Smile" that stuck interest on a £6000 overdraft the moment a guy graduated. So it can vary.

Pixie5740

Student bank accounts tend to allow large overdrafts but the largest ones I know of are Halifax and HSBC who offer £3k.

At 18 your son is an adult and therefore master of his own financial destiny. Just because a bank or building society offers him a large overdraft or credit card limit doesn't mean that he had to spend it. In fact he doesn't even need to apply for or accept the offer of an overdraft facility.