Overdraft Repayment?

Right, so I've got an overdraft limit of £1000 and its been sat there at -989.99 somethiing for several months now (no activity - nothing in nothing out).

I got a letter from my wan...sorry, bankers saying that since there has been no activity in the last few weeks that I need to make a payment. I think they forgot the 'or else we'll break yor legs' part.

1) Was it in the small print that I had to regularly repay back the money I borrowed? I really wasn't aware and certainly wasn't told when the overdraft limit was agreed.

2) Any ideas as to why they're so slow? I've left the overdraft dormant for almost a year now (I have two accounts!).

Banking is confusing. And no, I'm not gonna go in anymore to ask my questions; all the dudes at my bank always have a way of saying things that seem incredibly patronising. I never leave without having a mini panic attack in those places. :frown:

Reply 1

Tarts_n_Vicars

13

It's usually in the terms and conditions that they can ask you to repay the overdraft at any time so they are allowed to do it. Why they've done it now I'm not sure, maybe their computer system flags up accounts that are overdrawn with no transactions going through them?

Just happened to a mate of mine with Barclays...plead poverty and offer £10 a month or something.

Reply 2

black_mamba

OP

14

Aw that sucks, any time? :eek:

Barclays here too. I think its that stupid robot in the ads, hes gone insane and has probably held the workers up at gunpoint demanding all student account overdrafts to be repaid immeadiately. :frown:

Reply 3

ellewoods

10

black_mamba

Aw that sucks, any time? :eek:

Barclays here too. I think its that stupid robot in the ads, hes gone insane and has probably held the workers up at gunpoint demanding all student account overdrafts to be repaid immeadiately. :frown:

Unfortunately ALL overdrafts, student, business, whatever, are repayable on demand by the bank at any time :frown:

- if you've left it dormant for so long, they've probably just clicked on that you are using another account and so want to `prompt` you into paying this one back.

Reply 4

john williams

15

I got the Natwest overdraft just for the Railcard and havent yet made any transactions and they havent said anything. I thought they dont usually ask for repayment until u graduate.

Reply 5

TheEsoognom

Don't leave it too long whatever you do.
I've just had a letter from them demanding full repayment by the 6/2/2006 or I'm for the courts...bastards! They even included a nice letter saying I'll get blacklisted for 6 years too..and so will my housemates (Which doesn't seem alltogether legal to me btw)

Great..where the **** do I find £1000 from in a week!?

Reply 6

gianthead

12

TheEsoognom

Don't leave it too long whatever you do.
I've just had a letter from them demanding full repayment by the 6/2/2006 or I'm for the courts...bastards! They even included a nice letter saying I'll get blacklisted for 6 years too..and so will my housemates (Which doesn't seem alltogether legal to me btw)

Great..where the **** do I find £1000 from in a week!?

it doesn't seem legal, but that's the way it's done...if you knew the bizarre rules, corruption and illegal info sharing that goes into making your credit file you'd be amazed. it isn't just you that's blacklisted but your address, people associated with your adddress and family members associated with your previous addresses.
if you make an offer of repayment say a lump of £100 and then £20 a week forever, then it won't be worth them taking you to court cos the court'll just say you've made a reasonable offer of repayment and you can't pay the £1K anyway. however it will damage your credit ratings...

Reply 7

Toy Soldier

3

You just have to let them know that you "still exist", that's the only reason they want you using it. Basically, if you're not actively using the account, just go in every few weeks with £50, pay it in in cash, go outside, and take it back out of the cash machine.

Easy :smile:

Reply 8

TheEsoognom

I think I'm well past that stage now :/

Gianthead, if I offer to pay them say £100 a month, will that still damage my credit rating? :frown:

Reply 9

gianthead

12

TheEsoognom

I think I'm well past that stage now :/

Gianthead, if I offer to pay them say £100 a month, will that still damage my credit rating? :frown:

I think it may well, like late bill payments do :frown:

EDIT:no it's Ok I was wrong, if you get a deal with them they shouldn't be able to blacklist you

Reply 10

Juno

20

No, credit ratings are done on you not your address. So it won't affect your housemates. Also, there are steps they must take before they can issue a CCJ (which is why they need to go to court) so they're just trying to scare you.

Work out a budget. Set sensible amounts for everything you need to spend, prioritising food, council tax and housing. Then, whatever you have left spread out between all of your debts. Offer them whatever you can, even if it's £2 a month. If this is a sensible offer then if it does go to court they cannot force you to pay more than this.

But be sensible and negotiate with them. Explain to them your income and priority outgoings so they can see your offer is all you can afford.

And come over to MSE for better advice.

Reply 11

gianthead

12

yeah, I've just had a talk with my credit expert (he really is one he can clean up anyone's credit file however terrible) and he says that addresses aren't officially blacklisted, but if you unlink yourself from an address then you drop any bad score from there on your file. However, lots of companies unnofficially share info and may do their best to wreck you up if they don't like you. But as Juno says in this case they're just trying to scare you. Go for the £100 a month deal!

Overdraft Repayment?

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