Overdraft

lynn68

hi
 The Halifax bank gave my daughter a £500 overdraft when she was 18, she was not studying or working and had no regular money paid into her bank account. She has only just informed me she has this debt of which I am totally shocked, its now 2 years old. She hasn't paid anything back to the bank because she has always been on either no income or low income so interest and fees have accrued on the original £500. My question is, what were the bank thinking giving her £500 overdraft when they should have credit checked her and could see her bank account rarely had anything in it. Yes she was absolutely stupid for accepting it and then spending it and im raging with her but I find the bank highly irresponsible as lenders! I feel they have spiralled her into an unnecessary debt when she was young and vulnerable. I intend to deal with it but Can I ask your thoughts please.

MinuteNoodles

Would you like a side order of compensation with that claim?

You cannot deal with it. It is not your account and she is an adult in her own right so the only person who can deal with it is her. The bank will not discuss it with you because they're legally not allowed to, in law it is none of your business. Give her advice but she needs to learn to deal with things herself or she'll end up like my daughter in law was, a 23 year old adult completely incapable of functioning as one as her parents had always done everything for her.

Clive_Woody

Did she have to apply for this overdraft? Not sure if they are just handed out.

RelievedSheff

Your daughter needs to make arrangements to pay the money back that she owes to the bank. She spent it so she is responsible for the repayments.

You can't hold her hand forever and the only way for her to learn from her mistakes is for her to remedy them herself.

Her credit file will be reporting the debt each month so she won't be in a position to obtain more credit anytime in the near future.

MalMonroe

Clive_Woody said:

Did she have to apply for this overdraft? Not sure if they are just handed out.

That's not really relevant. Sometimes current accounts come with overdraft facilities, don't they? Particularly, and I don't know why, student current accounts, which could be what the OP's daughter was given as she was 18 at that time, often have very generous overdraft facilities. Which is stupid, given that students have either no or low incomes.

But as others have said OP's daughter was then, and is now, an adult and will have to sort this out for herself.