Removal of Overdraft

kms564

My bank has removed my Overdraft with no warning .   I am Self Employed but currently not working , so have no money to cover my Rent this month 
I thought Banks were meant to be helping in current climate 

eskbanker

https://www.moneysavingexpert.com/news/2020/03/uk-coronavirus-help-and-your-rights/#overdrafts summarises the overdraft-related concessions that banks are expected to make during the coronavirus crisis, but unfortunately they're not compelled to lend their money to everyone and overdrafts have always been subject to such immediate withdrawal.  Perhaps worth contacting them and highlighting the financial hardship that this decision would cause and asking them to review it?

It does seem a bit harsh though, so name them on here too....

kms564

Thanks eskbanker
Bank is Monzo who apparantly are paying off staff .  Maybe I,m paying their wages 

Barny1979

kms564 said:

Thanks eskbanker
Bank is Monzo who apparantly are paying off staff .  Maybe I,m paying their wages 

How are you paying their wages if you owe them money? You mean through the charges?

kms564

No Barny
They,ve taken my overdraft off me and prob lots of others 
I mean are they using all this money taken off people to pay their wages 

PaulW922

It may be worth speaking to them and explaining. Many years ago Nationwide removed my overdraft without warning on payday meaning my entire salary vanished paying back the money. After I spoke to them they gave me a 'reducing overdraft' whereby they re-instated it and then reduced it my £200 every month. However if I had done nothing then this would not have happened. 

ffacoffipawb

kms564 said:

Thanks eskbanker
Bank is Monzo who apparantly are paying off staff .  Maybe I,m paying their wages 

You are lucky thats all they've done. There is a facebook group called "Monzo stole my money...". Not all these people are moneylaunderers or criminals surely, but monzo is closing accounts left, right and centre and allegedly keeping the proceeds.

There is a similar group for NatWest too. Very worrying.

Barny1979

kms564 said:

No Barny
They,ve taken my overdraft off me and prob lots of others 
I mean are they using all this money taken off people to pay their wages 

If it's an overdraft, they are taking back their line of credit, not money from you??

enthusiasticsaver

Just to be clear an overdraft is not your money and has always been subject to immediate withdrawal. You could contact them and ask them to reinstate one but I would suggest you post on the DFW forum to get control of your debt. Are you entitled to any SE help from the government? Do you have anything you can sell to cover your rent? 

[Deleted User]

ffacoffipawb said:

kms564 said:

Thanks eskbanker
Bank is Monzo who apparantly are paying off staff .  Maybe I,m paying their wages 

You are lucky thats all they've done. There is a facebook group called "Monzo stole my money...". Not all these people are moneylaunderers or criminals surely, but monzo is closing accounts left, right and centre and allegedly keeping the proceeds.

There is a similar group for NatWest too. Very worrying.

At least with NatWest, you can park yourself at a RBS group branch for some info/a cheque!

[Deleted User]

kms564 said:

My bank has removed my Overdraft with no warning .   I am Self Employed but currently not working , so have no money to cover my Rent this month 
I thought Banks were meant to be helping in current climate 

Overdrafts are only usually removed if there is irregular credit turnover or no or little money is being paid into the account, as they are only supposed to be to help cash flow in months with extra expenses and not really intended to be used as an alternative option to enable other means of borrowing.

Overdrafts are also not based on a persons credit score in the same way as things like loans, credit cards or mortgages are, instead they are more based towards how the account is being used and the accounts credit turnover.