Nationwide Overdraft Help.

Sim454

Hello

Nationwide have told me I have to pay back my overdraft within 4 weeks. I don't have that kind of money lying around. They said they can set up a payment plan where I pay so much back each month to pay of the OD. But in doing this, they will put a mark on my credit file which lasts for 6 years, preventing me from getting a mortgage.

Basically it's either pay the OD off in full or get a mark put on my file, how is this fair?

Are they allowed to put a mark on my file? I haven't done anything wrong.

Thank you

Ben8282

An overdraft is repayable on demand. They are being nice t you giving you 4 weeks notice. Yes they are allowed to put a mark on your file.
What is the reason for the withdrawal of the overdraft facility? Account misconduct? Dormancy? Failure to pay money into the account on a regular basis?

MovingForwards

Fair? Yes, T&C's state they can recall an overdraft at any time.

Mark on your file? Yes. It's a debt and it either gets paid off in full, or by way of instalments.

How much is the overdraft?

How much of it do you use each month?

Do you live in your overdraft?

You may want to head over to the debt free wanna be board with a statement of affairs for some assistance.

eskbanker

https://www.nationwide.co.uk/guides/understanding-the-basics/understanding-overdrafts/overdraft-basics clearly advises:

Overdrafts are repayable on demand which makes them different to other forms of credit.

[...]

Can the bank change my arranged overdraft?

Your bank or building society might change your arranged overdraft arrangements if your situation changes. They also have the right to withdraw your arranged overdraft or demand you pay it back in full at any time.

I assume the generic third-person syntax suggests that the wording is someone else's standard text but Nationwide are obviously happy enough to share it under their name....

Willing2Learn

Sim454 wrote: »

Nationwide have told me I have to pay back my overdraft within 4 weeks. I don't have that kind of money lying around. They said they can set up a payment plan where I pay so much back each month to pay of the OD. But in doing this, they will put a mark on my credit file which lasts for 6 years, preventing me from getting a mortgage.

How much do you owe on the overdraft?
Do you have any other debts?

YorkshireBoy

Get a loan (from either Nationwide or another lender), rather than a payment arrangement, to repay the overdraft. Can't get a loan due to credit file information?...that's possibly why they've decided they want their money back, since all lenders take a monthly feed from the credit reference agencies.

Willing2Learn

YorkshireBoy wrote: »

Get a loan (from either Nationwide or another lender), rather than a payment arrangement, to repay the overdraft. Can't get a loan due to credit file information?...that's possibly why they've decided they want their money back, since all lenders take a monthly feed from the credit reference agencies.

I don't think that getting a consolidation loan would be the way forward. The OP needs to learn how to successfully manage a budget without dipping into lines of unmanageable credit. Basically, consolidation loans can be bad news and can often lead to a doubling of debt.

YorkshireBoy

Willing2Learn wrote: »

I don't think that getting a consolidation loan would be the way forward. The OP needs to learn how to successfully manage a budget without dipping into lines of unmanageable credit. Basically, consolidation loans can be bad news and can often lead to a doubling of debt.

This isn't consolidation though is it, and cannot lead to a "doubling of debt", since the original facility will be no longer available to them. So all they're doing is shifting the same debt from one lender/product to another lender/product. Yes?

Willing2Learn

YorkshireBoy wrote: »

This isn't consolidation though is it, and cannot lead to a "doubling of debt", since the original facility will be no longer available to them. So all they're doing is shifting the same debt from one lender/product to another lender/product. Yes?

I am assuming that something has spooked Nationwide (something like excessive debt or poor affordability). I was also assuming that on that basis a loan application would then be used toward settling additional debt accounts. I think I tend to assume too much...


@OP : Do you have any other debts?

Davy_Jones_II

What do you have that you can sell? A games console perhaps, CDs, a mobile phone?

How about a car, bike, or motorbike?

Can you get more hours at work, or take on a second job?

As others have pointed out, if you breach the terms then this can be recorded on your file, which lenders will tend to view negatively.

Sim454

Thank you everyone. OD £400. My circumstances hasn't changed, I'm in and out of the OD. I've done nothing wrong.

They are sending these letters out to nearly everyone I believe as NW is changing there OD fees and rules in-line with the new law early next year. NW are the first bank to do this.

I just think it's harsh them demanding full monies or get a mark on your file, banks are meant to help people, not punish them.

Thanks