Are the Banks about to get tough(er) on overdrafts?

TTMCMschine

Heres an article with a graph showing the link between swap rates & interest rates:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/10/cnrates110.xml

TTMCMschine

The worrying thing really is the speed with which they've shot upwards. If you look at the graph it took well over a year to climb the same distance that we've just witnessed in a few weeks.

Means the market is very nervous & really the economic data looks to support that worry.

izzygirl

I'm not sure if this is the right place to post this. But in light of the overdraft discussion I will. I applied to Abbey over a year ago using Martin's template requesting my charges back and had the usual letter saying they were investigating. I had another letter informing me of the impending test case hearing and heard nothing since. They ahve continued to charge me for going over as little as £2.00 in recently charged me, it appears, twice on the same day.

I wrote telling them of my disgust and could I have my charges back again, and received the normal letter about sorry I was not satisfied and they were investigating it. 6 days latter I received a letter saying it was a default notice under the consumer credit act 1974 for breach of mangement of account not in accordance with Terms and Conditons. The balance of my account is £198.10 mostly made up of charges. I have not used this account since May. I opened with a different back prior to that.

Now I am unsure what to do. I am not working but my husband is supporting me - with great difficulty I might add, while I am seeking work. Should I write and say fine we will go to court, or what should I do. I do not want to pay this balance whilst I am reclaiming charges and have more to add now. I am worried but also confused. They have given me 14 days from 26.08.08 but the letter only arrived this morning. Can anyone advise me?
Many thanks Izzygirl

savingholmes

No idea re advice... I regularly have voluntary reviews with my bank, discussing things with the personal banker... I am regarded as a good risk - which I am. It is however true that we are only in as much debt as we are as we were lent it in the first place, so there is a logic to correcting the situation. We are trying to bring our overdraft down - and move things to 0% if necessary. some of the cards where others have had their limits reduced, we have had limits increased on (without request). On my credit file report it said I was using less than a third of my available credit... if you take OH into account as well... the picture gets even scarier (in terms of available credit). Lots of people willing to lend us money "they like me, they really like me" but it doesn't mean I should use it. My priority looking at the current recession is to try and pay things off as quick as poss as I think things are going to get a lot worse before they get better. I am in a temporary job, and dread what it will be like when this one comes to an end....:eek:

I think by all means have a parachute account but don't make trouble where there isn't any. Do in this climate prioritise all debt repayment (including mortgage) as if this recession lasts for longer than a year or two things could get extremely hard for most of us.

savingholmes

izzygirl wrote: »

I'm not sure if this is the right place to post this. But in light of the overdraft discussion I will. I applied to Abbey over a year ago using Martin's template requesting my charges back and had the usual letter saying they were investigating. I had another letter informing me of the impending test case hearing and heard nothing since. They ahve continued to charge me for going over as little as £2.00 in recently charged me, it appears, twice on the same day.

I wrote telling them of my disgust and could I have my charges back again, and received the normal letter about sorry I was not satisfied and they were investigating it. 6 days latter I received a letter saying it was a default notice under the consumer credit act 1974 for breach of mangement of account not in accordance with Terms and Conditons. The balance of my account is £198.10 mostly made up of charges. I have not used this account since May. I opened with a different back prior to that.

Now I am unsure what to do. I am not working but my husband is supporting me - with great difficulty I might add, while I am seeking work. Should I write and say fine we will go to court, or what should I do. I do not want to pay this balance whilst I am reclaiming charges and have more to add now. I am worried but also confused. They have given me 14 days from 26.08.08 but the letter only arrived this morning. Can anyone advise me?
Many thanks Izzygirl

I think you need to start your own thread as no idea on how to advise on this. People will see your request for help quicker that way.