Natwest suddenly closed my account

justastudent

Hi everyone, hope all are well and having a good Xmas break.

I'm a student and yesterday got a blunt text message from Natwest saying all my accounts are blocked and I can no longer be provided banking facilities from them. Further that a 'letter' will be sent outlining what is happening and the next steps. Apparently violating T&C's of the account. I have done my reading online and no I am not involved in any kind of money laundering or fraud, I'm just a regular person.

I already have an account elsewhere so I'm not worried and never liked NatWest anyway lol, the account was open because I've used my student o/d (was give £2k @ 0%) and was planning to start paying it back just next month.

I am posting here because I am worried as I owe (i.e. have used) most of the overdraft. How am I supposed to pay it back? how am I meant to make that produce that amount of money out of thin air? cant even login to online banking to see my account and since its blocked not really risking sending money into it just yet. Will this affect my credit rating? I'm very young and my financial life is just beginning! I don't want nonsense defaults or arrears disabling my credit life in any way!

Please, can someone help?

born_again

You will need to speak to them about the overdraft and how they would like it paying back.

Breech of T/C could be many things.

Ed-1

born_again wrote: »

Breech of T/C could be many things.

I doubt the text says anything about breach of T&Cs. It more likely says that they are closing it under the T&Cs (which they can for whatever reason they want).

justastudent

The text said:

"IMPORTANT

Following a review of your banking arrangements, we have made the decision that we can no longer offer you banking facilities. Accounts have been blocked & a letter sent to advise this decision & next steps. This decision is in line with the T&Cs of your account & we are unable to discuss the rationale for this. "

My main concern is how does this affect my credit file?

Does anyone have experience with these sort of events?

Thrugelmir

justastudent wrote: »

I'm very young and my financial life is just beginning! I don't want nonsense defaults or arrears disabling my credit life in any way!

Then you'll need to come up with a plan to repay the overdraft.

justastudent

Thrugelmir wrote: »

Then you'll need to come up with a plan to repay the overdraft.

Okay so say there was an agreement for 12 months to repay the balance, provided I make those payments as agreed and on time would the account show 'up to date'/ 'in good standing' or would there be some kind of arrears or default or late payment markers?

Thrugelmir

Overdrafts are contractually repayable on demand. Therefore it's possible that an Arrangement to Pay will marked on your credit file.

Willing2Learn

justastudent wrote: »

Okay so say there was an agreement for 12 months to repay the balance, provided I make those payments as agreed and on time would the account show 'up to date'/ 'in good standing' or would there be some kind of arrears or default or late payment markers?

As stated by Thrugelmir, that would most likely result in 12 months of the dreaded 'AP' markers on your credit file. You could avoid the AP marker if you can successfully apply for a money transfer card with a 0% APR promotional window.


https://www.moneysavingexpert.com/credit-cards/money-transfers/

justastudent

Willing2Learn wrote: »

As stated by Thrugelmir, that would most likely result in 12 months of the dreaded 'AP' markers on your credit file. You could avoid the AP marker if you can successfully apply for a money transfer card with a 0% APR promotional window.

But how could I? I'm a student, I don't currently have a job! Being under the impression that I had the account until I graduated I had made my own plans to repay the O/D, not through this outrageous arrangement payment method! This is gonna ruin any financial future for 6 years+ !

Willing2Learn

justastudent wrote: »

But how could I? I'm a student, I don't currently have a job!

Sorry. My bad. I should have realised you were still a student from your username.

If you were to open a new student account with an overdraft via a different banking group, would you not be able to repay the NatWest OD by transferring the money across from your new bank OD?

Are you able to work part-time to increase your income?

Terry_Towelling

justastudent wrote: »

Hi everyone, hope all are well and having a good Xmas break.

I'm a student and yesterday got a blunt text message from Natwest saying all my accounts are blocked and I can no longer be provided banking facilities from them. Further that a 'letter' will be sent outlining what is happening and the next steps. Apparently violating T&C's of the account. I have done my reading online and no I am not involved in any kind of money laundering or fraud, I'm just a regular person.

I already have an account elsewhere so I'm not worried and never liked NatWest anyway lol, the account was open because I've used my student o/d (was give £2k @ 0%) and was planning to start paying it back just next month.

I am posting here because I am worried as I owe (i.e. have used) most of the overdraft. How am I supposed to pay it back? how am I meant to make that produce that amount of money out of thin air? cant even login to online banking to see my account and since its blocked not really risking sending money into it just yet. Will this affect my credit rating? I'm very young and my financial life is just beginning! I don't want nonsense defaults or arrears disabling my credit life in any way!

Please, can someone help?

You'll have to talk to NatWest about how they will want the OD to be repaid.

You say you don't have a job but that you were planning on making repayments from next month, so you obviously have a source of finance that will cover it (in time). You also say you have an account elsewhere; does that have an OD facility that you can use?

You're not very young (as you put it); someone under 5 years old might claim to be very young but you are over 18 (apparently).

I don't know why you'd be concerned about an AP marker affecting your credit file; you are hardly in a position to service any further debt, so you wouldn't be applying for any, would you?

Your opening post suggests you were alleged to be in violation of the account T&Cs; why did you reach that conclusion when the transcript of the NatWest text in your second post says nothing of the sort?