Overdraft Facility Withdrawn!

rusty-london

I received a message from my bank over the weekend informing me that my overdraft facility is to be withdrawn on 23/12/2007 and being overdrawn after this date will incur charges.:eek:

It is going to be impossible for me to repay the full amount of £700 by this time so I'm going to try and contact the bank and see if I can set up a payment plan over a couple of months to repay the O/D. I was thinking of asking if I could reduce the O\D from £700 to £500 by the end of this month then £250 by the end of January then remove it completely by the end of February.

Does this sound reasonable?

Would I incur the penalty charges for doing this?

How is the best way to go about speaking to the right people at the bank? I don't want to be passed from pillar to post between every department in the bank.

Mark7799

They may do that - alternatively, see if you can get another bank to take you on.

Dylanwing

http://forums.moneysavingexpert.com/showthread.html?t=540075
Nationwide by any chance?

rusty-london

I understand that it's within their T&C's that they can do this, it's just that I wasn't expecting it and as I say I don't have the money to pay it off in full.

I'd prefer to not have to change banks as I'm reasonably happy with my current bank.

It's typical though, I'd just spent a couple of hours going through my finances and sorting things out with a view to sorting out some debt problems after the New Year, then the bank sent me the email about the O\D and threw a huge spanner in the works!

inmypocketnottheirs

Rusty, which bank are we talking about here?

I had exactly the same thing occur a few years ago with Co-op. It turned out that the o/d expired every six months and all I had to do is phone and renew it. Hopefully this is the case for you too.

If not, I would not break my back in getting it reduced, I would just phone and say that this is a very difficult time of year, blah, blah, blah, that your car has broken down, the chimney fallen in, the cat got run over and your knitting needles are blunt (basically any old bs you can think of) and see if you can agree a monthly reduction of say £20 per month.

Hope this helps!

rusty-london

inmypocketnottheirs wrote: »

Rusty, which bank are we talking about here?

I had exactly the same thing occur a few years ago with Co-op. It turned out that the o/d expired every six months and all I had to do is phone and renew it. Hopefully this is the case for you too.

If not, I would not break my back in getting it reduced, I would just phone and say that this is a very difficult time of year, blah, blah, blah, that your car has broken down, the chimney fallen in, the cat got run over and your knitting needles are blunt (basically any old bs you can think of) and see if you can agree a monthly reduction of say £20 per month.

Hope this helps!

This account's with the Co-op as well!

I'll call them in the morning.

inmypocketnottheirs

rusty-london wrote: »

This account's with the Co-op as well!

I'll call them in the morning.

I am sure it will be ok. If not, go down the reducing route. Let us know how you get on.

rusty-london

Well I called the bank today and managed to speak to an exceptionally helpful lady.

Basically she went through the details about my account and the problems that I've been having with it lately then explained how best to solve them.

As a result my O/D is being reduced by £100 this month then the same next month and then after that I've to call the bank and let them know how I'm getting on with it with a view to removing the O/D between March and November next year.

This fits in with my plans to clear my debts over the next year, it just means that I've had to reshuffle a couple of things. :j

Ken_Parton

The Yorkshire bank did the same to my wife and did not even inform us they were going to do it.The court case is on hold.

MABLE

rusty-london wrote: »

Well I called the bank today and managed to speak to an exceptionally helpful lady.

Basically she went through the details about my account and the problems that I've been having with it lately then explained how best to solve them.

As a result my O/D is being reduced by £100 this month then the same next month and then after that I've to call the bank and let them know how I'm getting on with it with a view to removing the O/D between March and November next year.

This fits in with my plans to clear my debts over the next year, it just means that I've had to reshuffle a couple of things. :j

There you have hit it on the head.

"Basically she went through the details about my account and the problems that I've been having with it lately then explained how best to solve them"

In your first post you made no mention that you had been experiencing problems and reading your first post we would assume the bank were being unreasonable. This obviously is not the case and because of problems this is why they were going to withdraw your overdraft.

With the greatest respect so many posters complain about their overdraft facility being removed but oftern there is a very good reason why this action has been taken.

Anyway a good result.