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    • AD1979
    • By AD1979 10th Jan 18, 9:36 PM
    • 2Posts
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    AD1979
    Bank Overdraft and share account.
    • #1
    • 10th Jan 18, 9:36 PM
    Bank Overdraft and share account. 10th Jan 18 at 9:36 PM
    Hi All,

    I need some advice if possible.

    I currently have a bank account with lloyds which is really overdrawn and I have just received a letter stating that if this is not settled by the beginning of Feb, they will put it in the hands of a recovery agent.

    I also have a share account with lloyds which is not linked to my bank account in any way. If I cannot pay back my overdraft with lloyds, would they be able to collect the money straight from my share account. There is only a small amount in my share account and it is currently not making any profit.

    Thank you
    AD
Page 1
    • ValiantSon
    • By ValiantSon 10th Jan 18, 9:43 PM
    • 2,013 Posts
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    ValiantSon
    • #2
    • 10th Jan 18, 9:43 PM
    • #2
    • 10th Jan 18, 9:43 PM
    They are more likely to seize assets from your home if you are unable to repay the overdraft. If you sold your investments could you clear the overdraft? If you can then you should. The investments are not worth having if you can't manage your cashflow.
    • AD1979
    • By AD1979 10th Jan 18, 9:49 PM
    • 2 Posts
    • 0 Thanks
    AD1979
    • #3
    • 10th Jan 18, 9:49 PM
    • #3
    • 10th Jan 18, 9:49 PM
    Thank you for your response. My shares are only worth about 200 as they have dropped a lot recently. My OD is about 3k.

    I was hoping that if my shares increased in value I could cash them out and pay back the OD.

    I was just wondering if they could take my shares directly out of my share account to cover part of the debt owed, as I do not want that to happen.
    • ValiantSon
    • By ValiantSon 10th Jan 18, 10:21 PM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    • #4
    • 10th Jan 18, 10:21 PM
    • #4
    • 10th Jan 18, 10:21 PM
    Thank you for your response. My shares are only worth about 200 as they have dropped a lot recently. My OD is about 3k.

    I was hoping that if my shares increased in value I could cash them out and pay back the OD.

    I was just wondering if they could take my shares directly out of my share account to cover part of the debt owed, as I do not want that to happen.
    Originally posted by AD1979

    Honestly, I don't think your shares are going to grow at the rate that you hope. If the bank are calling the debt in then you only have a few weeks at best to settle the overdraft.

    If they are taking this action then it would suggest that you haven't been servicing the account properly, i.e. you haven't been making regular deposits to the account and they have lost confidence that this debt will ever be repaid. Are you running this account as a secondary account where you have maxed out an overdraft and are hoping to use this as a form of credit? They won't tolerate that indefinitely. You need to speak to the bank and discuss how you might go about repaying the overdraft. There are no guarantees, but if you can come up with a reasonable proposal about how you will reduce the debt over time (ultimately leading to its being fully repaid) then they may agree - but you will need to stick to this.

    If that is not a possibility then you might have to try taking out a personal loan to clear the overdraft. Never a great position to be in and you may not get one, but may be worth a try. Again, however, you will have to take this seriously and make all the repayments on time.

    I suggest that you go and speak to Citizens' Advice about your situation.

    And I maintain that the shares are a complete waste of time. Sell them.
    Last edited by ValiantSon; 10-01-2018 at 10:54 PM. Reason: Typo
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