Santander overdraft facility removed

Joe99

Hi guys just wondering if any confirmation on this would be helpful.

Basically I applied for a £1,500 overdraft last August and got accepted, since then my credit has got very much worse and couldn’t stay on top of the agreed overdraft.

I have a 123 Lite account and went into an unarranged overdraft resulting in my account now standing at £1,731 overdrawn but yesterday it showed as -£231 because the £1,500 was arranged.

I woke up this morning to check my online banking to see the balance as -£1,731.00 so Santander had removed my arranged overdraft facility.

I rang up the collections department immediately and she said the arranged overdraft facility had only been removed because the account was £231 over the limit (but I had arranged this with them 2 weeks ago to repay the £231 in small instalments)

Now that the account stands at -£1,731 I must make an arrangement to repay back the full amount. I arranged with her £30 a month but she said because the offer of repayment is too low the agreement would not be a formal agreement but it would still be placed on the account.

However she said the account may get closed in the future if the bank isn’t happy with the amount that’s being repaid as it will take about 5 years to repay and it would be passed onto an external debt collection where I can arrange an offer of repayment directly to them.

However, I have also got a basic account and a top up account with them, my income goes into my basic account. She said if my Lite account ever got closed in the future it wouldn’t affect my basic or top up account and those 2 accounts would still remain open, and only the lite account would be closed.

She said all the accounts would only be closed if there was any fraudulent activity, so she said I could still continue to bank with Santander.

If this is true then I will be happy as my income goes into my basic account and if I want to make any online or in shop purchases I can transfer into my top up debit card.

Any advice on this would be appreciated thank you

[Deleted User]

Yes it's true.

As for advice - if you're living in your OD then post a SOA up on the DFW board to see where you can cutback and make payments to clear it quicker.

eskbanker

Joe99 wrote: »

She said if my Lite account ever got closed in the future it wouldn’t affect my basic or top up account and those 2 accounts would still remain open, and only the lite account would be closed.

She said all the accounts would only be closed if there was any fraudulent activity, so she said I could still continue to bank with Santander.

If this is true....

!!! wrote: »

Yes it's true.

I don't think it can be definitively confirmed as true - Santander might choose only to close one account out of three but it's also possible that they'd choose to terminate the entire banking relationship without fraud being involved.

It's not generally a good idea to pay your regular income into a different account from the one that's overdrawn, as this makes it more likely that the bank will recall the overdraft and put you in this situation of repayment on demand. Having both with the same bank may help though.

!!! wrote: »

As for advice - if you're living in your OD then post a SOA up on the DFW board to see where you can cutback and make payments to clear it quicker.

For anyone unfamiliar with the TLAs, these are:

SOA = Statement Of Affairs: http://www.stoozing.com/calculator/soa.php

DFW = Debt-Free Wannabe board: https://forums.moneysavingexpert.com/forumdisplay.php?f=76

Joe99

BUMP:

Hi everyone just thought I’d bump this thread instead of making a new one as it relates to the original post.

Basically, I am now £1,800 overdrawn, yesterday I tried logging into my online banking and it wouldn’t let me I tried to log in on the browser it said my Personal ID number wasn’t recognised. I noticed something was immediately wrong.

I rang up Santander they’ve informed me they made a decision yesterday to block and close all my accounts (lite, basic, top up account) and I have 28 days to go into branch with my bank cards and photo ID to withdraw any funds.

I am due a DWP payment of £595 into my basic account on Tuesday, I asked Santander if I could go into branch with my cards and ID to withdraw and she said yes you have 28 days until all accounts are fully closed.

I rang DWP to change my bank details they couldn’t change it for my PIP in time as it was issued yesterday and payment is due Tuesday so I will need to ring back PIP Tuesday to change my bank details.

My ESA is due on Thursday so I rang them and they said they could change my bank details so I gave them my new bank details and they said the money would be in the new account on Thursday which is fine. This is enough of time for them to change the bank details to my new account right???

I am just wondering when I go into branch on Tuesday to withdraw my £595 will I definitely be able to withdraw my money? She said any DWP or salary payments can be withdrawn with no problems before the accounts are fully closed.

Is this correct? I’m just scared they won’t give me my money? Are they allowed to pay £595 off the £1,800 overdraft? On the letter today it said I must make arrangements to pay the £1,800 within 28 days so I’m guessing they obviously won’t keep my £595 DWP payment?

Thank you everyone for any advice you can give!! Much appreciated

buglawton

eskbanker wrote: »

For anyone unfamiliar with the TLAs, these are:

SOA = Statement Of Affairs: http://www.stoozing.com/calculator/soa.php

DFW = Debt-Free Wannabe board: https://forums.moneysavingexpert.com/forumdisplay.php?f=76

What's a TLA?

[Deleted User]

Yes they can close your accounts.
Yes you can access your money.
Yes you need to make arrangements to get the overdraft paid off in full.

colsten

Go to StepChange or to your local Citizens Advice office for personalised help.

d123

eskbanker wrote: »

For anyone unfamiliar with the TLAs,

For anyone unfamiliar with TLA

A three-letter acronym (TLA), or three-letter abbreviation, is an abbreviation consisting of three letters. These are usually the initial letters of the words of the phrase abbreviated, and are written in capital letters (upper case); three-letter abbreviations such as etc. and Mrs. are not three-letter acronyms, but "TLA" itself is a TLA

https://en.wikipedia.org/wiki/Three-letter_acronym

sheramber

The bank cannot use your benefit money to pay off the overdraft