Bank switch loss of paycheck

judtin

I recently switched my bank account from Halifax to nationwide. I was living in my halifax overdraft and decided to sort my life out and open an account with no overdraft facillity. My paycheck went into my Halifax account before the switch. However i then find out that my halifax account is now closed and my wages have been used to pay off the remainder, leaving me broke until my next paycheck.
Yes i know its my fault but both halifax and nationwide say they cant help me!!! Any advice?

spadoosh

It not going to be too easy getting it back, once theyve got the money theyre unlikely to release it again, particularly if theyve closed the account.

What are we talking, what needs paying? What have you got (liquid assets to sell, food in the cupboards etc etc).

Any friends and family that can help cover the essentials for this month? Anything that can be delayed until the month after.


Whilst this isnt ideal for you, providing you dont go the expensive credit route again (overdrafts are usually very expensive) it could be an opportunity to finally get that overdraft sorted and knocked on the head, thus making things easier long term, so short term pain long term gain.

Don80

Hi, I think this would have happened anyway. Under the current account switch service, they will use a balance to clear an overdraft on the old account (the point is to close it). Even if your wages had been paid into the new account before the switch date, the overdraft debt would have been paid to Halifax from your new account to close the old account. Without an overdraft facility the effect would have been the same.

The only way to avoid that would have been to just open the new account and transfer direct debits and standing orders yourself. Then, once you paid the Halifax overdraft back in your own time, close the account.

You really have two options.
1. Ask Nationwide for an overdraft (but this defeats the purpose of you opening a new account, so probably not wise unless you have no other option)
2. As @Spadoosh said see if anyone can help you out this month

It depends on what you have to pay - are you covered for rent/mortgage and other essentials?

BooJewels

Don't forget (perhaps too late for the OP, but might help someone else) that in order to pay off an overdraft, you need twice the amount of money that you're overdrawn in order to carry on, if your expenditure is the same. Because you go from minus numbers to positive ones. So, if you're a grand overdrawn, you'll actually need £2k - £1k to repay the overdraft (bringing you to 0) and £1k to live off the following month - bringing you back to 0 just before payday.

I've just paid off a 25+ year perpetual overdraft and it has taken quite a mental shift to adjust to the idea that spending money from the bank balance reduces numbers, not increases them!