Help in Closing a Current Account

AKSeeks

Hi All,

I'm currently with Natwest and a few months ago my graduate account with a £500 overdraft turned into a current account and as a result of this I have been charged £90 a month in overdraft charges and unfortunately the balance currently stands at -£800.45.

After speaking with an adviser at Nattiest she let me know that I could close the current account to stop the charges and pay the remainder of the money as a debt in instalments. However after trying to cancel my account today I was told I needed to ring the debt management team who said I would be unable to close the account and the charges would persist until the debt was paid off!

It seems crazy to me that if I were to pay £100 a month into the account only £10 would actually get paid off!

Any advice would be gratefully received.

Brightspark87

Hi I would never normally suggest this but any chance you would be accepted for a credit card? If you can do a money transfer you can pay off that overdraft straight away. Alternatively you could use the card for purchases and pay it all off asap? Hope this helps anyhow

National_Debtline

Hi there,


Unfortunately, it is quite common that a bank would refused to close the account with a balance owing. The best thing I can suggest at this stage is, firstly, to make sure you are no longer banking with NatWest. If you are they may allocate future money to this overdraft without your permission (which they can do).

Then, secondly, I would suggest that you write to them and raise your concerns regarding the overdraft and the fact that the account changed from a graduate account to a current account without your knowledge and the fees that this has incurred. Now, if this was specified in the terms and conditions of the account you can only ask the bank to use their discretion in removing some/all of the fees and allowing you to do a payment plan on the remaining balance (and freezing any future interest or charges). If they refuse I would suggest you send your payments anyway and pursue the issue of charges and interest. Some of this may be at the banks discretion but you can take it to the Ombudsman if you feel that is appropriate as well. Good luck,


Laura
@natdebtline