Bank of Scotland Overdraft

Juls1

Hi received a letter today from my bank saying that they will be charging 1p per day for every £7 borrowed from November. As we currently have an overdraft of £1,999 due to moving house and needed improvement (didn't want the £2 a day scenario for £2,000), the question is can you move bank accounts and leave the overdraft without paying any money in or will they want it paid back in full? We hope to move house next year (again! haven't settled) and pay this off but don't want to be crippled with this increase from November until we move as we have no way of paying it back at the moment! Thanks for your advice x

eskbanker

Juls1 wrote: »

the question is can you move bank accounts and leave the overdraft without paying any money in or will they want it paid back in full?

If you use the Current Account Switching Service then this closes the old account and so you have to pay back any overdraft, usually by securing the same size of overdraft with your new bank.

On the other hand, you can open another account without actually switching leaving the overdrawn one without any regular incoming payments. However, this is likely to lead to the bank demanding immediate repayment of the overdraft so isn't recommended....

You may need to adjust your plans to defer moving until you've sorted your overdraft out one way or another.

Westie983

Juls1 wrote: »

Hi received a letter today from my bank saying that they will be charging 1p per day for every £7 borrowed from November. As we currently have an overdraft of £1,999 due to moving house and needed improvement (didn't want the £2 a day scenario for £2,000), the question is can you move bank accounts and leave the overdraft without paying any money in or will they want it paid back in full? We hope to move house next year (again! haven't settled) and pay this off but don't want to be crippled with this increase from November until we move as we have no way of paying it back at the moment! Thanks for your advice x

I would suggest a token payment into the account rather then nothing to stop the trigger asking for full payment back or default to collections.

This is happening to all LBG accounts and is giving notice of change to try and reduce any overdrafts to a more manageable level.

Sadly living and using the full overdraft is what the group is trying to avoid, it's a risk to them to have people using overdrafts without payment going in.

Sadly this change will impact those customers who live in a high overdraft (banks money) and not repaying, after all overdrafts are repayable on emand and I think this is what they are doing to balance the risk of people defaulting and not paying back overdrafts.

It's going to affect a lot of customers like yourself whom are overdrawn more then £700.

If you switch the overdraft is repayable before competion, alternatively you could open a new account and class the overdraft as a debt, but will cost you £2.86 a day, so maybe that's not an option as he debt will increase more then your repayments.

Westie983

cptkirk

I know someone who just got notified about this today. They're going to be hit hard as the interest charges are tripling for the amount they owe on their overdraft.

For those customers on higher overdraft limits, are BoS offering any kind of help? I know overdrafts are repayable on demand, but the triple interest seems excessively punitive.

GingerFurball_2

Depending on your level of overdraft use, you might be put on a different tariff initially to cushion the blow.

PeacefulWaters

cptkirk wrote: »

I know someone who just got notified about this today. They're going to be hit hard as the interest charges are tripling for the amount they owe on their overdraft.

For those customers on higher overdraft limits, are BoS offering any kind of help? I know overdrafts are repayable on demand, but the triple interest seems excessively punitive.

It might be an occasion where a consolidation loan is a good idea.