Overdrafts

BillieTheBot

I have a huge authorised overdraft facility (not a student one). Do banks (or even building societies) tend to get arsey when you use them a bit?

I tend to be overdrawn at the end of each month, and now need to spend more on sorting a flat out. Great fun. I've realised that (authorised or not), it can't look that good to a bank.

Has anyone had any problems with overdraft use?

Thanks

Former Member

So long as it's been authorised there's no issue. After all you pay them for it (in interest)

Former Member

I had an £1600 one at one point and they were fine as long as i didn't go over it.

Former Member

Mist wrote:

So long as it's been authorised there's no issue. After all you pay them for it (in interest)

The logical part of my says that

But the worrying part thinks that they might just say (and I think the T&Cs say so too) sod off, you can't have one anymore. And ask for (tell) me to give the money back.

Cheers.

Former Member

banks love for people to have huge overdrafts. loads of lovely interest for them.

as long as you're within the authorised limit it's all good

Former Member

I've been caught out twice just lately with bank charges (£30 each time) because Direct Debits got rejected because I didn't have enough of my overdraft left. If they'll let you - and you have enough self control not to use it all!! - I'd always get the overdraft amount for a little more than you think you'll need, just in case. Like I say, all about self control tho!

I don't know what other banks / BSs charge, but Nationwide charges me about £3.50 a month for being £700 overdrawn in a standard current account.

Former Member

Crocidolite wrote:

The logical part of my says that

But the worrying part thinks that they might just say (and I think the T&Cs say so too) sod off, you can't have one anymore. And ask for (tell) me to give the money back.

Cheers.

I doubt they would, because it doesn't make any business sense to do that.

Former Member

My best friend's bank did actually go down the "repayable on demand" route.

Then again, she was a couple of grand overdrawn and not paying anything into the account - she got her wages paid into another account because each time she got paid her wages were just swallowed up by paying up the overdraft. She was way over her limit and each time she got paid and thought "oh, I've paid a bit off - I can go to the cash machine again now", she was charged £20 each time she got money out and another £20 for the letter telling her that she'd been charged £20! That was Lloyds TSB.

Former Member

They're fine with it Andy

Mine even went so far as to send me a nice letter saying "dear Sir, your overdraft limit has been breached by some direct debits. We extended this for you and paid the bills. We will set you back to your normal limit next month. There is no charge for this."

Jolly nice chaps, I thought!

Former Member

as long as you arrange things with the bank and show them you'll be reliable with getting rid of the debt they wont mind

im graduated from uni this year having gone into some of my interest free overdraft - the bank to my knowledge wont charge me interest even though ive finished cause we agreed to pay it back over a certain time

**helen**

BritJames wrote:

They're fine with it Andy

Mine even went so far as to send me a nice letter saying "dear Sir, your overdraft limit has been breached by some direct debits. We extended this for you and paid the bills. We will set you back to your normal limit next month. There is no charge for this."

Jolly nice chaps, I thought!

Wow - which bank was that?

Former Member

**Helen** wrote:

Wow - which bank was that?

Just what I was going to ask!

Former Member

It was trusty ol Lloyds TSB