Bank account and defaulting

Lettingissues77

Hi,

I have moved my salary to another bank, and I had a £355 loan with the bank I banked with (RBS) I was surprised that rather than say there was no funds available for the loan, they have withdrawn the amount taking my account into an unarranged overdraft. I’m a bit concerned this will result in considerably more interest being added. 

I think it’s probably best to contact them and explain. I have been in contact with stepchange and am going to go into a DMP after defaults. Just a bit nervous about this. Would it be better to send a letter?

Devongardener

It’s an automated process so no one would be checking your account to see if funds were available,  if you have an overdraft facility that would be used to cover the repayments without contacting you.   You should talk to the bank, but I doubt they will reverse it or do anything until your DMP is in place.

Lettingissues77

i was just surprised, as in the past I have had a message saying you do not have sufficient funds to make a payment, we’ll try again at 1pm. So was expecting the payment to not go through