Overdraft Nat West

Louise2704

I went to uni in 2003 and was given a 2000 overdraft from the Nat west without even having a job. Needless to say as an 18 y/o I spent the overdraft and then whilst in uni was able to stay within the 2000k overdraft by using my student loan. Then when I left and got a job, flat, bills etc I struggled to stay within the overdraft and a snowball effect began. I would go outside the overdraft and then all my wages would be taken as charges each month until I went to the bank in tears and they put me on a step account (no overdraft) but I set up a plan to pay it. I couldn't afford the amount until I had terrible credit in 2013 I agreed to pay £30 a month as the debt had been sent to a debt collector who threatened me (Robinson way). As of this February i will have finished paying this debt but can't help but think this was very negligent lending. An 18 y/o in uni with no job. I understand I could have said no but as a young person loose in the world what do they expect. The debt was mainly caused by the bank charges I accrued month in month out, how would I go about looking at claiming something back?

Blackbeard_of_Perranporth

Louise2704 wrote: »

I went to uni in 2003 and was given a 2000 overdraft from the Nat west without even having a job. Needless to say as an 18 y/o I spent the overdraft and then whilst in uni was able to stay within the 2000k overdraft by using my student loan. Then when I left and got a job, flat, bills etc I struggled to stay within the overdraft and a snowball effect began. I would go outside the overdraft and then all my wages would be taken as charges each month until I went to the bank in tears and they put me on a step account (no overdraft) but I set up a plan to pay it. I couldn't afford the amount until I had terrible credit in 2013 I agreed to pay £30 a month as the debt had been sent to a debt collector who threatened me (Robinson way). As of this February i will have finished paying this debt but can't help but think this was very negligent lending. An 18 y/o in uni with no job. I understand I could have said no but as a young person loose in the world what do they expect. The debt was mainly caused by the bank charges I accrued month in month out, how would I go about looking at claiming something back?

Question. Did you enjoy spending the £2,000?

You probably had good rate for the overdraft and thus only became payable when you left school. You were not missold.

NewToTheUkAgain

I think you come across like they owe you something. They do not. Overdrafts are available to those that apply who are of adult age. We all make mistakes through life and it’s part of learning as a young adult.

boo_star

Student accounts with fee free overdrafts are pretty much the norm.

I think if this was "irresponsible lending" then the FCA (and probably the FSA back in the day) would have done something about it already.

Flobberchops

If I was able to retroactively be compensated for every poor decision I made as a teenager/twentysomething, I would claim back at least three years of university fees. Discover yourself, they said. Improve your employability, they said...

Sharon87

It's not irresponsible. It's lending to a student at 0% interest until a year or two after they graduate. By that point they should have a job and be able to pay it off (in theory).

As a student you should know it's not free money, that you'd have to pay it back. I was stuck in my graduate overdraft, I eventually did a money transfer to a 0% card once the 0% interest expired.

Most of my uni friends has overdrafts but barely used it. I needed it before uni to help pay for the house deposit/costs of starting uni!

NewToTheUkAgain

Forgot to add, welcome to the forum at MSE

Dobbibill

Welcome to the forum.
You aren't able to claim any of it back and well done on getting to the end of a plan to repay everything that you borrowed.

This is one of lifes lessons but learning from it is also important.

What are your plans with the £30 a month now?
Is that destined for a savings account or allocated to a specific purpose?