Nat West

serenity2012

Weird day. Have been with Natwest for years. Never been overdrawn or anything like that. Have a credit card with them and an agreed overdraft of £1000 that was prearranged. Suddenly today i got a letter simply stating they were closing my account after having reviewed it, that they would give no explanations or references and that I had 80 days before it was closed. That all monies owed had to be paid right away including credit card balance and overdraft. I've googled and have seen this has been happening to lots of people with no warning and no reason. They can place their account where the sun rarely shines now anyway because it's outrageous. My problem is, legal agreements were surely made with them re the credit card and how much needed to be paid off the balance etc each month. Same with the overdraft where it was prearranged etc. How can they now legally say 'tough luck we want it all now'? Has anyone any info on this because it seems to be happening to lots of people. Do they have a right to then ignore the credit agreements made previously and unilaterally? I have no idea what is going on. I have zero intention or ability to pay off the overdraft and credit card all at once and don't see why I should. I know my account has been run correctly so no idea why this has come out of the blue. Just wondering if anyone here knows why they are doing this to people and being so rude about it too.

YorkshireBoy

Generally you need to die, become bankrupt, or repeatedly breach the T&Cs for them to legally demand the credit card be paid off immediately.

The overdraft is different. You're wrong to believe it's not repayable on demand even though it was "prearranged" whatever that means. If you don't repay this in a reasonable timescale they will default you.

Something has clearly spooked them. Suggest you check your credit files and CIFAS for any clues.

[Deleted User]

Of course they can demand it back.
It’s their money after all...

born_again

Never been overdrawn or anything like that
agreed overdraft of £1000
I have zero intention or ability to pay off the overdraft

If you have never been overdrawn why do you have to pay a overdraft back?
If you are using that Agreed (& payable back on demand) £1000 then you are overdrawn.

When you say prearranged. Do you mean that you are dealing with their Credit team to clear of arrears/debt?
Strange that it's 80 days. Usually this is 60 days....

Sorry but you post raises more question....

xlnc99

Its so worrying how banks can just decide to shut your account with any warning even for customers using it fairly. There needs to be a law change.

How is one meant to live their life daily knowing at any point a bank can cut ties with you with any reason. A bank plays a huge role in a person everyday life.

Before i get the usual responses 'its up the bank' 'get another account'

Thats not the point, why should a person go for the hassle of opening another bank and whats not to say they will do the same!

bigadaj

xlnc99 wrote: »

Its so worrying how banks can just decide to shut your account with any warning even for customers using it fairly. There needs to be a law change.

How is one meant to live their life daily knowing at any point a bank can cut ties with you with any reason. A bank plays a huge role in a person everyday life.

Before i get the usual responses 'its up the bank' 'get another account'

Thats not the point, why should a person go for the hassle of opening another bank and whats not to say they will do the same!

Whilst most people won't go to the trouble of opening multiple accounts as many do on these boards for incentives bonuses, interest etc then it would be prudent for most people to have at least two current accounts with separate banking organisations, due to the disruption to many by the not infrequent internet issues experienced by natwest, TSB and others.

xlnc99

problem with multiple bank accounts open (i do have them) you have to pay in a certain amount each month just to keep it active. Its a bit of a hassle doing this

YorkshireBoy

xlnc99 wrote: »

problem with multiple bank accounts open (i do have them) you have to pay in a certain amount each month just to keep it active. Its a bit of a hassle doing this

To enjoy the benefits or to avoid fees perhaps, but certainly not "just to keep it active".

xlnc99

whatever the reason - if you have 5 bank accounts you have to make 5 monthly payments to each account! If you dont have a big enough income to spread the payments then you have to transfer 5 separate payments to each account in and out each month

Hassle and annoyance for no reason

YorkshireBoy

xlnc99 wrote: »

whatever the reason - if you have 5 bank accounts you have to make 5 monthly payments to each account! If you dont have a big enough income to spread the payments then you have to transfer 5 separate payments to each account in and out each month

Hassle and annoyance for no reason

It'd certainly be "hassle" to send 5 payments to each account each month. I suppose the "annoyance" would come when you realised just one payment to each would do!

xlnc99

YorkshireBoy wrote: »

It'd certainly be "hassle" to send 5 payments to each account each month. I suppose the "annoyance" would come when you realised just one payment to each would do!

What i meant was If you don earn a high income then essential you need to move money around each five accounts. So for example you earn 1k per month, you send 1k to account 1 - then account 1 to 2 and so forth until it comes back to your original account

Also this comes with risk as i have read banks are catching on to this nowdays so there is a chance your accounts could be shut down if the spot this trend