Overdraft

Trev21

2 Quick question some years ago for which I mean approx 14 years I was on a low income , and was always in my overdraft, as time went on the overdraft amount was increased by myself . However I’m now stuck with high overdraft for which I’m in it every month. For which I’m charge a small fee plus interest
Do I have a case to complain to my bank for irresponsible lending ?. To be quite honest I not looking for a payout but to have the over drat settled.
Q2, can I close down my account and schedule a repayment with the bank without it affecting my credit score ?

Stuart_W

Q1 No idea on mis-selling issue, others may have more knowledge but I'd be inclined to think this is unlikely.

Q2 An overdraft with a monthly fee and interest can be an exceptionally expensive way to borrow. What are you paying? If you can get a loan or low rate/0% credit card you may be able to clear your debt more cheaply.

DCFC79

Trev21 wrote: »

2 Quick question some years ago for which I mean approx 14 years I was on a low income , and was always in my overdraft, as time went on the overdraft amount was increased by myself . However I’m now stuck with high overdraft for which I’m in it every month. For which I’m charge a small fee plus interest
Do I have a case to complain to my bank for irresponsible lending ?. To be quite honest I not looking for a payout but to have the over drat settled.
Q2, can I close down my account and schedule a repayment with the bank without it affecting my credit score ?

1st. Your credit score is only seen by yourself, your history is what lenders see.

2nd the OD was increased by yourself, you didnt have to, you could have taken steps at the time to reduce the overdraft.

As fpr misselling, I'd say no chance but why not stick a complaint in amd see what happens.

Re Q2 you may be able to do that, speak to the bank though, as mentioned a suitablecredit card would be a better option.

Are your wages paid into the same account ?
Get them paid into another account and move any DD's to that new account but an account not with a bank thats from thesame group as the 1 with the overdraft.

Ben8282

Q1. No.
Q2. Forget your meaningless credit score. The only reason you would be concerned about this is that you intend to apply for further credit which would surely be unwise in your situation. I really don't see that this course of action would benefit you in any way. It would seriously effect your ability to obtain credit as your credit files would show an arrangement to pay. The only way out of this is to spend less so that the overdraft will reduce slowly over time as more money remains in your account each month.
One possibility would be to transfer the overdraft debt to a 0% money transfer card if you were able to obtain such a product. This would eliminate the fee and interest and allow you to repay over a period of time without paying the fee and interest each month.

colsten

DCFC79 wrote: »

Are your wages paid into the same account ?
Get them paid into another account and move any DD's to that new account but an account not with a bank thats from thesame group as the 1 with the overdraft.

That could be dangerous as the bank could decide to call in the overdraft in full if there's no regular deposit coming into the account. Mind you, they could decide to do this, anyway, as overdrafts are repayable on demand.

Having a second current account could, however, be a smart move. Have it fed from the existing current account, though, the one with the overdraft on.

Make a serious effort to reduce the overdraft balance each and every month. If need be, reduce your spending and/or increase your income (e.g. overtime, change job, get a second job). If you need help with reducing your spending, fill in an SOA and post it on the debt free wannabe board.

Davy_Jones_II

Stop looking to blame others for decisions that only you made. You spent the bank’s money, they charge you for it, and you knew this ahead of time.

If you don’t like the fees, then don’t use their money, but please, don’t try to pass the buck.

pvt

Trev21 wrote: »

Do I have a case to complain to my bank for irresponsible lending ?.

No - given you asked for the increases to your O/D limit with no plan during 14 years as to how to repay it, it's very clearly a case of irresponsible borrowing.

To be quite honest I not looking for a payout but to have the over drat settled.

How reasonable of you.

Q2, can I close down my account and schedule a repayment with the bank without it affecting my credit score ?

No - very unlikely. And why do that?

Just stop spending as much money from it and surely you'll achieve the same objective?

Based on the info provided, you're obviously at least 14 years old. Time to start taking responsibility for your finances.

Just think how much all those "small charges" and interest payments have added up to every month for more than 160 months...

Flobberchops

What is emboldening this recent slew of posters who feel that just because a past decision has inconvenienced them, they're now victims who deserve compensation?


It's like walking into a pub, ordering eight pints and drinking them one after the other, and then demanding compensation from the landlord because you now feel ill.

eskbanker

Flobberchops wrote: »

It's like walking into a pub, ordering eight pints and drinking them one after the other, and then demanding compensation from the landlord because you now feel ill.

Would that be a hangoverdraft then?

Willing2Learn

Flobberchops wrote: »

What is emboldening this recent slew of posters who feel that just because a past decision has inconvenienced them, they're now victims who deserve compensation?

I don't think anything is changed. People will always be looking for a simple and quick resolution to their financial problems.

@OP - It sounds like you need help with budgeting and debt solutions. Why not post your Statement of Affairs (SOA) on the Debt-Free Wannabe (DFW) board? You will not be judged. You will just be given quality advice based on exact financial circumstances.