Intelligent Finance

nridgeway

We have 2 current accounts with IF. We have received a letter regarding closure for one account and that our overdraft is being decreased in June and account closed in August. The amount of decrease they have quoted in June is actually an increase. I am speaking to them and they have said it’s an error but can’t tell me what the limit will be! They don’t know what is happening with the other current account. So in June our payments could start bouncing because we don’t know what our overdraft is. In reality if they close both accounts in August we will have to pay £3000 in overdraft back to them with 2 months notice. Are they able to do this? Is this treating customers fairly in the current climate? 

wmb194

nridgeway said:

We have 2 current accounts with IF. We have received a letter regarding closure for one account and that our overdraft is being decreased in June and account closed in August. The amount of decrease they have quoted in June is actually an increase. I am speaking to them and they have said it’s an error but can’t tell me what the limit will be! They don’t know what is happening with the other current account. So in June our payments could start bouncing because we don’t know what our overdraft is. In reality if they close both accounts in August we will have to pay £3000 in overdraft back to them with 2 months notice. Are they able to do this? Is this treating customers fairly in the current climate? 

Check the terms for your accounts but yes, overdrafts are usually repayable on demand.

eskbanker

https://www.if.com/current-accounts/overdrafts.html is where IF say it:

All overdrafts are subject to our assessment of your circumstances and are repayable in full on demand.

Brie

If you don't pay the overdraft the account will be closed for use and they will expect the overdraft to be paid.  If paying it all immediately is impossible then engaging with them to explain your financial situation may enable them to agree a payment plan with you.  It might help your case if you get help from a free debt counselling service (NationalDebtline, StepChange, some food banks or community money advisers).  An adviser can help you draw up a statement of your finances which will show how much you might be able to afford to pay any creditors.  And likely they'll be able to do the ground work of contacting creditors on your behalf.

DullGreyGuy

The financial Ombudsman requires that banks provide no less than 30 days notice for cancelling accounts other than in exceptional circumstances and therefore if they've given you to August they have gone notably beyond the bare minimum.

[Deleted User]

If you don't have the ability to repay the overdraft (in full) by that time via savings or third party loan then you should make enquiries to see what they can offer you. They will likely be able to offer you a gradual reduction, repayment plan or other loan to cover the amount.

nridgeway said:

We have 2 current accounts with IF. We have received a letter regarding closure for one account and that our overdraft is being decreased in June and account closed in August. The amount of decrease they have quoted in June is actually an increase. I am speaking to them and they have said it’s an error but can’t tell me what the limit will be! They don’t know what is happening with the other current account. So in June our payments could start bouncing because we don’t know what our overdraft is. In reality if they close both accounts in August we will have to pay £3000 in overdraft back to them with 2 months notice. Are they able to do this? Is this treating customers fairly in the current climate? 

It's actually two months in the T&Cs unless issues such as potential fraud & staff abuse etc. The big difference here is that IF are closing their current account business. This means they will have a fixed end date whereby they will shutdown all live current accounts - end of.

DullGreyGuy said:

The financial Ombudsman requires that banks provide no less than 30 days notice for cancelling accounts other than in exceptional circumstances and therefore if they've given you to August they have gone notably beyond the bare minimum.