Overdraft

garyolderk

Hi,

I hope this is in the correct place apologizes if not.

I currently have an overdraft that is quickly coming to its limit. For nearly a year now I have been out of work and obviously the coronavirus is not helping to get back on my feet. I thought the new year would bring in some good changes regarding work so was not too worried at all about the financial aspect of things. Now with this new lockdown that could go on for months the worry has now turned in to a reality that things work wise will not be better for a while. My overdraft limit is £2000 with Halifax which I currently am using £1900 and even with the £500 interest free you can imagine the fees per day still add up.

I have already started budgeting and seem to be saving a bit more than usual but in this situation without a regular wage it does not seem to be enough specially with the OD fees per day. My income at the moment is UC and child tax credit. Is their any advise on what help I could get to maybe stop the fees altogether for a little until I am back on my feet and can pay it off? I have also read about been able to claim back some if not all overdraft charges? Is that correct or false information?

One of the reasons I have come here for help before contacting my bank is I am worried they would freeze my account and any money going in would be to just pay the OD off leaving me with pretty much nothing.

Thank you for any help given. 

eskbanker

https://www.moneysavingexpert.com/banking/cut-overdraft-costs/ offers suggestions, but unless you're able to refinance your debt, ultimately it's down to either earning more or spending less - visit the debt-free wannabe board and post details of your income and expenditure there for constructive ideas about how to tackle your debt....

garyolderk

eskbanker said:

 offers suggestions, but unless you're able to refinance your debt, ultimately it's down to either earning more or spending less - visit and there for constructive ideas about how to tackle your debt....

I think I have read that already. What circumstances typically make claiming back OD charges successful? With been on low income surly that does? Also my last worry in my post was can the bank just freeze my account and leave me with nothing until the OD is paid?.

[Deleted User]

garyolderk said:

eskbanker said:

 offers suggestions, but unless you're able to refinance your debt, ultimately it's down to either earning more or spending less - visit and there for constructive ideas about how to tackle your debt....

What circumstances typically make claiming back OD charges successful? With been on low income surly that does? 

Noe.  But if you're in current hardship, they can work with you to find ways to help, which may mean suspending fees for a while.  It's more complex than just £x of fees being refunded.

garyolderk

Noe.  But if you're in current hardship, they can work with you to find ways to help, which may mean suspending fees for a while.  It's more complex than just £x of fees being refunded.

Oh I understand it will not be a case of picking the phone up and getting fees paid back. Obviously I have used it and it costs to use. It is just I read they are not allowed to use benefits to pay for it. Is that false?

eskbanker

garyolderk said:

Noe.  But if you're in current hardship, they can work with you to find ways to help, which may mean suspending fees for a while.  It's more complex than just £x of fees being refunded.

Oh I understand it will not be a case of picking the phone up and getting fees paid back. Obviously I have used it and it costs to use. It is just I read they are not allowed to use benefits to pay for it. Is that false?

You're allowed to instruct your bank to pay certain bills out of your benefit income, as a higher priority than overdraft repayment, by exercising first right of appropriation - there's a template letter at https://www.nationaldebtline.org/sample-letters/ask-your-bank-pay-particular-bills/

https://www.moneysavingexpert.com/reclaim/bank-charges/ outlines scenarios under which unfair charges for exceeding overdraft limits could potentially be reclaimed.

DCFC79

If your concerned about the account being closed then open up an account with another bank, Try Virgin Money, Monzo or Starling.

born_again

garyolderk said:

Hi,

I hope this is in the correct place apologizes if not.

I currently have an overdraft that is quickly coming to its limit. For nearly a year now I have been out of work and obviously the coronavirus is not helping to get back on my feet. I thought the new year would bring in some good changes regarding work so was not too worried at all about the financial aspect of things. Now with this new lockdown that could go on for months the worry has now turned in to a reality that things work wise will not be better for a while. My overdraft limit is £2000 with Halifax which I currently am using £1900 and even with the £500 interest free you can imagine the fees per day still add up.

I have already started budgeting and seem to be saving a bit more than usual but in this situation without a regular wage it does not seem to be enough specially with the OD fees per day. My income at the moment is UC and child tax credit. Is their any advise on what help I could get to maybe stop the fees altogether for a little until I am back on my feet and can pay it off? I have also read about been able to claim back some if not all overdraft charges? Is that correct or false information?

One of the reasons I have come here for help before contacting my bank is I am worried they would freeze my account and any money going in would be to just pay the OD off leaving me with pretty much nothing.

Thank you for any help given. 

If your O/D is rising all the time and even with cost cutting it is still not going down.
CALL HALIFAX. All banks have teams to deal with your situation. They will run though your figures and look at helping you. It may include refunding some fee's or suspending them going forward, but that will involve a plan to bring the O/D down and will show on your credit file. Shutting your account down would be the last thing they would be look at doing at the moment.
Also look at opening a 2nd bank account as a stand by. Which most people should have anyway to cover any IT issues.