News0 min ago
Overdraft agreement
5 Answers
Hiya, am a bit confused. I called up my bank for an overdraft last year and they gave me one with no questions but have recieved a letter from my bank a year later saying
'The overdraft agreement you have with us is due to end on 30 MAR 2006' And the rest of the letter basically says that any money overdrawn by that date will be subject to unauthorised overdraft charges. Theres a number at the bottom to ring to 'discuss my overdraft arrangement'.
Is this normal when you have an overdraft? Do you only get it for a year? I was unaware of this and am in no fit positon to find the money to pay it off by the end of the month. Do they just mean to phone them to renew it for another year???
PS: I know I could solve this by phoning them but I HATE phoning my bank and want my situation clarified before I ring them lol
'The overdraft agreement you have with us is due to end on 30 MAR 2006' And the rest of the letter basically says that any money overdrawn by that date will be subject to unauthorised overdraft charges. Theres a number at the bottom to ring to 'discuss my overdraft arrangement'.
Is this normal when you have an overdraft? Do you only get it for a year? I was unaware of this and am in no fit positon to find the money to pay it off by the end of the month. Do they just mean to phone them to renew it for another year???
PS: I know I could solve this by phoning them but I HATE phoning my bank and want my situation clarified before I ring them lol
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An overdraft is a temporary thing - usually ranging from 3 months to a year. In practice, they will in all likelihood renew it (they make money off you when you are overdrawn). Call them asap as just in case they say no (which they are well within their rights to do) it gives you time to go elsewhere.
If you do keep within your facility, they will in all likelihood renew it, but if they don't you need time to open up a new account with another bank - Halifax are rather good and usually match your cuurent facility.
If you do keep within your facility, they will in all likelihood renew it, but if they don't you need time to open up a new account with another bank - Halifax are rather good and usually match your cuurent facility.
Some banks automatically renew your overdraft when the "expiry date" nears - others send this type of letter.
Sometimes if you have an overdraft and either go over it or there's just less money going through your account (i.e. not enough to support the full overdraft that you have) then you'll get this type of letter as the bank are required to give you written notice before removing or reducing the overdraft.
As Oneeyedvic says - if your current bank won't keep your OD as it is then you can "switch" to another bank and they'll match your current overdraft amount. They may need 3 months' bank statements to confirm your existing overdraft limit (and show you've not run your account ragged).
Sometimes if you have an overdraft and either go over it or there's just less money going through your account (i.e. not enough to support the full overdraft that you have) then you'll get this type of letter as the bank are required to give you written notice before removing or reducing the overdraft.
As Oneeyedvic says - if your current bank won't keep your OD as it is then you can "switch" to another bank and they'll match your current overdraft amount. They may need 3 months' bank statements to confirm your existing overdraft limit (and show you've not run your account ragged).
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