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Went over the overdraft
Hi
I am currently on a student account with barclays where they have allocated me an internet overdraft limit of £500.
A few days ago, I was running short on money and my next payment will be early October so I have ordered a product on the internet. I have now exceeded my overdraft limit and I assumed that they were going to charge the normal interest rates however I have just found out that they charge you £15!!! a day for going over your limit. That means by the end my payment gets through, I will own them £300 quid!!!.
So I was wondering if they charge these rates on student accounts? It doesn't say explictly but on their other (current account) pages it says:
Also, when I look at my online statements, after each transaction number, there is this three-letter abbreviation UNP as I assume it means Unpaid?
Did this happen to everyone?
I am currently on a student account with barclays where they have allocated me an internet overdraft limit of £500.
A few days ago, I was running short on money and my next payment will be early October so I have ordered a product on the internet. I have now exceeded my overdraft limit and I assumed that they were going to charge the normal interest rates however I have just found out that they charge you £15!!! a day for going over your limit. That means by the end my payment gets through, I will own them £300 quid!!!.
So I was wondering if they charge these rates on student accounts? It doesn't say explictly but on their other (current account) pages it says:
Charges for unpaid Direct Debits
* If a Direct Debit is due and there is not enough money in your account, the Bank will stop the payment.
* On each day that the Bank stops the payment or payments, an Unpaid Fee of £15 will be taken from your account (maximum per account per day).
* If a Direct Debit is due and there is not enough money in your account, the Bank will stop the payment.
* On each day that the Bank stops the payment or payments, an Unpaid Fee of £15 will be taken from your account (maximum per account per day).
Also, when I look at my online statements, after each transaction number, there is this three-letter abbreviation UNP as I assume it means Unpaid?
Did this happen to everyone?
Yes, they have every right to charge you.
In every bank's terms and conditions booklet (which they have to give to you according to FSA regulations, and which are freely available in PDF on the 'net) they explain that they can charge you a fee for going overdrawn over the agreed limit, in addition to the % they'll charge you anyway.
By signing the application form, you are agreeing to be charged if you go over the agreed limit.
Certain banks like Lloyds TSB will waive the first fee you incur for going overdrawn, but I'm not sure what Barclay's policy is for this...
In every bank's terms and conditions booklet (which they have to give to you according to FSA regulations, and which are freely available in PDF on the 'net) they explain that they can charge you a fee for going overdrawn over the agreed limit, in addition to the % they'll charge you anyway.
By signing the application form, you are agreeing to be charged if you go over the agreed limit.
Certain banks like Lloyds TSB will waive the first fee you incur for going overdrawn, but I'm not sure what Barclay's policy is for this...
I think you have misunderstood. Read http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=channelFWgroup&value=6681&target=_blank&site=pfs again.
You get charged 1 £10 for going overdrawn £25 or over your agreed limit PLUS charged interest at 2.05% interest on anything above your agreed limit (i.e. so you only get interest on the amounts over £500).
The maximum £15 fee per day is if cheques, standing orders or direct debits and not paid because you are overdrawn. If they are not paid, then they would not be on your online statement would they?
I don't think this is going to be as bad as you think it is. However, what you need to do is go into your branch and INCREASE YOUR OVERDRAFT NOW to £1000, then you won't be overdrawn any more. If you don't go over your agreed limit in the next 12 months, you'll get the fees charged this time refunded.
You get charged 1 £10 for going overdrawn £25 or over your agreed limit PLUS charged interest at 2.05% interest on anything above your agreed limit (i.e. so you only get interest on the amounts over £500).
The maximum £15 fee per day is if cheques, standing orders or direct debits and not paid because you are overdrawn. If they are not paid, then they would not be on your online statement would they?
I don't think this is going to be as bad as you think it is. However, what you need to do is go into your branch and INCREASE YOUR OVERDRAFT NOW to £1000, then you won't be overdrawn any more. If you don't go over your agreed limit in the next 12 months, you'll get the fees charged this time refunded.
I recently covered a story that was featured in The Times a couple of months back, basically the charges are in the contract - but you can claim them back.
Best thing to do is threaten legal action. Believe it or not the banks (or rather the call centre staff) couldn't care less about your financial situation or which bank you are going to move to, but you can still argue the case.
The office of Fair trading state that any admistration charges over £12 are unfair with the typical cost of "going over your overdraft" only goes into pence, but it appears that the banks are really cleaning up.
I have paid out countless amounts in charges, but I've got around 60% back...
You can check out the feature herehttp://www.clearstudentdebt.co.uk/index-29.htm/
Best thing to do is threaten legal action. Believe it or not the banks (or rather the call centre staff) couldn't care less about your financial situation or which bank you are going to move to, but you can still argue the case.
The office of Fair trading state that any admistration charges over £12 are unfair with the typical cost of "going over your overdraft" only goes into pence, but it appears that the banks are really cleaning up.
I have paid out countless amounts in charges, but I've got around 60% back...
You can check out the feature herehttp://www.clearstudentdebt.co.uk/index-29.htm/
andy_c
I don't think this is going to be as bad as you think it is. However, what you need to do is go into your branch and INCREASE YOUR OVERDRAFT NOW to £1000, then you won't be overdrawn any more. If you don't go over your agreed limit in the next 12 months, you'll get the fees charged this time refunded.
I'm not so sure if I was Halifax I'd give the person more money. I am assuming you are a new student, and you're already £500 in the red? If you're already at uni, then that's fine. I am not saying you're bad, as I have used my overdraft to get a laptop, so same situation.
But I wouldn't expect them to give me more money until I've put quite a bit back to show them I will be putting money in the account too!
If you want to increase your overdraft you will probably have to sit down with a personal banker (or over the phone) and go through a budget plan. That way they can establish whether the extra money is really for living expenses or whether you just want to piss it up the wall.
There are many students like you, my overdraft is £2000 in the red - I guess barclays have been good to me.
There are many students like you, my overdraft is £2000 in the red - I guess barclays have been good to me.
I have a Natwest account, with an overdarft of £1600 (3rd yr student).
When I get to the limit of my overdraft, thats it, it wont let me take any more money out or use my debit card. Im surprised that the Barclays one isnt the same, surely theyre just encouraging you to get into more debt if you can go over your limit??
When I get to the limit of my overdraft, thats it, it wont let me take any more money out or use my debit card. Im surprised that the Barclays one isnt the same, surely theyre just encouraging you to get into more debt if you can go over your limit??
spark911
I'm not so sure if I was Halifax I'd give the person more money. I am assuming you are a new student, and you're already £500 in the red? If you're already at uni, then that's fine. I am not saying you're bad, as I have used my overdraft to get a laptop, so same situation.
But I wouldn't expect them to give me more money until I've put quite a bit back to show them I will be putting money in the account too!
But I wouldn't expect them to give me more money until I've put quite a bit back to show them I will be putting money in the account too!
as a bank offering a student account, they should raise the overdraft to the maximum amount if you ask.
my overdraft was £100 (automatically allocated) for a while at the start of uni and then a massive phone bill went through, which made me go over. i got a one off charge etc and got a bit pissed off, because i shouldn't have been in that situation as a student. i went into the branch that day and they raised my overdraft to £1000.
~ o
At HSBC, I have gone over my overdraft limit, but they havn't put any charges on my account. Probably because they know the student loan is coming through in a few days - either that, or I'm a lucky girl 
xxx.
xxx.They won't not charge you because student loans are coming through. They won't even know if you are having a loan. If it's your first offence, they might allow you to get away with it. If you get no charges, you are extremely lucky!!
andy_c
They won't not charge you because student loans are coming through. They won't even know if you are having a loan. If it's your first offence, they might allow you to get away with it. If you get no charges, you are extremely lucky!!
Actually, the banks are aware of when you are recieving credit to your account (money). I was only £3 over, and I put some spare cash into my account today so guess I have nothing to worry about!
xxx.~ o
Actually, the banks are aware of when you are recieving credit to your account (money). I was only £3 over, and I put some spare cash into my account today so guess I have nothing to worry about! xxx.
xxx.How can a bank know when you are getting your money? They can't possibly know its coming... they will only know once it gets there.
andy_c
How can a bank know when you are getting your money? They can't possibly know its coming... they will only know once it gets there.
Sorry, let me clarify, I think they know when its wages etc. My work mate was over £300 over her overdraft limit and she recieved a call from HSBC. They said that they were aware she was recieving credit into her account soon, and basically warned her not to spend it xxx.
Yes, but HSBC meant it was probably within the 3 working day period of it being transferred over, when both banks are aware of money going in/out.
Bit different to pyschically 'knowing' that a cheque/internet transfer will be paid in next week.
A couple of banks, eg Lloyds TSB make a big song and dance about the fact they waive the first overdraft fees you incur. Bad idea if you ask me, lets people think it's ok to go on collecting debt...
Bit different to pyschically 'knowing' that a cheque/internet transfer will be paid in next week.
A couple of banks, eg Lloyds TSB make a big song and dance about the fact they waive the first overdraft fees you incur. Bad idea if you ask me, lets people think it's ok to go on collecting debt...
Thanks for the replies
I have just checked my online bank statement and it says they have rejected these payments. I have used paypal to pay for the goods and they have sent me an email saying "Your bank has declined the funds transfer." so since Barclays rejected these payments, does that mean that they won't charge me?
I have tried upping my overdraft but Barclays seems initate a complete investigation for a small increase of your overdraft.
I have just checked my online bank statement and it says they have rejected these payments. I have used paypal to pay for the goods and they have sent me an email saying "Your bank has declined the funds transfer." so since Barclays rejected these payments, does that mean that they won't charge me?
I have tried upping my overdraft but Barclays seems initate a complete investigation for a small increase of your overdraft.
Listen guys....yes you sign a contract when you open a bank account but you have no choice but to sign the contract.
Banks are charging extortionate rates for going over OD limits......THIS IS ILLEGAL!
Read articles here http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632,
They may only charge you the amount it costs them for letters, peperwork etc. Problem is that they WILL NOT TELL US THE ACTUAL AMOUNT THEY ARE PAYING OUT....because its peanuts. I followed the advice on the money saving expert and claimed back all bank charges over the last 6 years which amounted to near enough £2000. The banks will NOT take you to court because its not in their interests to do so. Seriously read the article and do something about it.....they make money out of us left, right and centre......ITS PAYBACK TIME!!
Banks are charging extortionate rates for going over OD limits......THIS IS ILLEGAL!
Read articles here http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632,
They may only charge you the amount it costs them for letters, peperwork etc. Problem is that they WILL NOT TELL US THE ACTUAL AMOUNT THEY ARE PAYING OUT....because its peanuts. I followed the advice on the money saving expert and claimed back all bank charges over the last 6 years which amounted to near enough £2000. The banks will NOT take you to court because its not in their interests to do so. Seriously read the article and do something about it.....they make money out of us left, right and centre......ITS PAYBACK TIME!!
Related discussions
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