Overdraft Mis-Sold

Williams717

Hi Everyone,

Just want a but if advice. Back in around 2012/13 I went into my local bank (NatWest) and was offered an overdraft on my account of £1500. At the time I think my annual salary was around £15-17k a year which meant that this overdraft was way too much for me and over anything I could afford to pay back, this meant that I kept getting charges monthly for going into my overdraft. I finally managed to pay it off around 3-4 years later. Have sent a complaint into NatWest, would you say that this is an error on their part? Surely the amount of the overdraft they gave me was way too much? 

Any advice/opinion more than welcome  

IanManc

Being given an overdraft doesn't come with an obligation to use it.

You chose to use the overdraft.

The bank has done nothing wrong.

R_P_W

Just curious what is the basis of your complaint?

Assume you knew what an overdraft was and that it likely wasn't cost free?

jimjames

If they'd offered you a £15,000 overdraft on £15k salary you may have a point. As above being offered something doesn't mean you have to use it so no it's not an error on their part.

born_again

Williams717 said:

Hi Everyone,

Just want a but if advice. Back in around 2012/13 I went into my local bank (NatWest) and was offered an overdraft on my account of £1500. At the time I think my annual salary was around £15-17k a year which meant that this overdraft was way too much for me and over anything I could afford to pay back, this meant that I kept getting charges monthly for going into my overdraft. I finally managed to pay it off around 3-4 years later. Have sent a complaint into NatWest, would you say that this is an error on their part? Surely the amount of the overdraft they gave me was way too much? 

Any advice/opinion more than welcome  

£15 to 17K back in 2013 would be quite a good wage (average  £27,000,) & a £1.500 overdraft would be in line with a reasonable amount to offer. Banks do not offer limits that they feel a customer will have problems with as it will cost them money in the end with defaults.

But remember, you did not have to take up the offer if you thought it was too high (personal responsibility)
No chance of the complaint having the result you are hoping for.

eskbanker

Williams717 said:

I kept getting charges monthly for going into my overdraft.

If you were spending the money on essentials, how would you have got by without the overdraft facility?

If it was non-essentials, why spend money you didn't have?

Sensory

You have a basis for complaint if you initially borrowed to fund your essential purchases after the first (or so) few times of being charged fees, and then stopped borrowing, yet remained in perpetual overdraft for years because of the fees (and not because you borrowed more). It would help your case if you happened to ask NatWest soon after initially being charged fees if they could have offered cheaper methods of borrowing (e.g. credit card).

The first time I ever went into unarranged overdraft, by less than £1 (before the days of being able to pay back the same day), I was charged £65 in fees. The same happened again (less than £1) a few years later (and no same-day payback). I was able to claim a refund because I wasn't repeatedly going into overdraft.

Se1Lad

£1.5K overdraft is not much more than one month’s salary after tax, which sounds reasonable to me.  My overdraft of 15K is roughly 2 month’s salary after tax.

Thrugelmir

Williams717 said:

 which meant that this overdraft was way too much for me and over anything I could afford to pay back, 

Why did you spend the money then ?