irresponsible overdraft limit

AnnieB49_2

I have just discovered that my son's bank has, over a period of months, allowed him to have an overdraft limit of £950!! as he earns approx £1100 monthly he has been regularly going over this limit and 2 of his DDs have been getting returned. Having checked his statements I see that he's been getting charged between £30 and £90 every single month for being over the O/D limit not to mention the fees from the recipients of the "bounced" DDs and this has lead to hi being caught in a vicious cycle of hardship every month. I totally understand that my (20 year old) Son must bear some of the responsibility for his irresponsible spending but I am really frustrated by the bank's, in my opinion, irresponsible decision to allow him to rack up an O/D of £950 and make money off him every month. Can someone, who is not emotionally involved, advise if I have a case to ask for any of these charges back??

glentoran99

No you don't, Your son is an adult and he took on the credit, he needs to take on the responsibility for his own decisions

[Deleted User]

No. He didn't need to spend the money.

dunstonh

I have just discovered that my son's bank has, over a period of months, allowed him to have an overdraft limit of £950!!

£950 is not lot. So, its not an irresponsible amount. Especially when his monthly income covers it.

and this has lead to hi being caught in a vicious cycle of hardship every month.

Does he live with you or have his own property?

I totally understand that my (20 year old) Son must bear some of the responsibility for his irresponsible spending but I am really frustrated by the bank's, in my opinion, irresponsible decision to allow him to rack up an O/D of £950 and make money off him every month.

Some responsibility? You mean total responsibility. Although you could perhaps take some responsibility too for not teaching him better management. No bank staff were with him when he spent the money. So, they haven't influenced his spending.

Can someone, who is not emotionally involved, advise if I have a case to ask for any of these charges back??

Nothing you have said indicates any wrongdoing by the bank. The figure is not high or out of proportion for his income. However, if the bank have never refunded before and you can put a good case to them, they may well offer a goodwill gesture. Depending on the level of hardship, they will often refund if they agree it is hardship.

If he has still been living a consumer lifestyle and lives with parents then they wont refund anything. If it is clear that the charges are eating too much of his money and he is not spending it on consumer items then they will take a view. Financial Hardship requests are a goodwill gesture by the bank. You want the bank on your side. So, don't go firing off at them blaming them. You want to paint a picture of hardship that the person at the bank feels sorry for him and then offers a refund of some of his charges.

Stevie_Palimo

I agree here with the above posts and it seems harsh yes but not unreasonable as he has had the money in the first place and managed to spend it, As per dunstonh advice above about speaking calmly to the bank and seeing if as a gesture of goodwill they may refund some charges to him.

The next step here will be if he lives at home to do as follows :-

Monthly income at £1100 against say monthly outgoings of say £500-£600.00 and has around £500 or so left that he uses for enjoying himself ie:- pubs, clubs meals and clothes.

He should allow a minimum of £100- per month and pay this into the account then have the overdraft lowered each time a payment is made, Ideally you would want higher amounts but this depends upon what money he has coming in against what he must pay out.

Nasqueron

I earn around £1250 after tax a month, I have 2 credit cards both with limits of £4000 or so and a BT card with about £3500 free, I don't run them up because I know what I can afford to spend - no-one is forcing your son to live beyond his means.

He should clear the OD (reduce spending on trivial stuff e.g. take coffee to work instead of buying, make his own lunch, sell stuff), then get it reduced down and refuse any increases in the future if he can't handle it

-taff

Did they allow it or did he ask for it?
If he is in hardship, he could write to them or speak to them and ask them to consider some means of alleviating it. If he's not in hardship, there's not much chance he'll get anything back.
Might be a idea to send ihm to the debt free wannabe board or somewhere where he can learn what a budget is.