I left my job in Dec had no money coming in for a little while the bank decided to up my overdraft limit. Which has now thrown me into debt as I now have a overdraft limit of nearly £1000 i get paid weekly and not one penny touchs my pocket all the money is going to the bank in charges. I can't pay rent or even get too work or buy food because of the fact they decided to do this to me.
Are you not meant to sign something to say that you want the money or make some sort of agreement with the bank?
How can they do this? I want to fight it how can i do this?
2007-02-11 22:15:44 · 11 answers · asked by deb_star_82 3 in Business & Finance ➔ Credit
I was not aware of the incress until 2 months afterwards. They money got spent a long time ago
2007-02-11 22:20:57 · update #1
Actually your all wrong i have been phone to the bank and the have refunded around £700 ponds worth of charges to me. They admitted the error
2007-02-11 22:32:46 · update #2
you should have said the minute they increased it having an over draft might seem great but you have to remember that that money is not yours and has to be paid back
2007-02-11 22:19:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I'm sorry. But you are not correct.
Increasing your overdraft limit did not "throw you into debt" It was your spending that did that.
fi they hadn't of increased your limit would you have still survived ? If so, then its entirely your fault you used up the overdraft limit
Why do so many people try to blame banks for thier debt ?
i have no clue.
take responsiblity for your own actions.
Stack shelves at night in Sainsbury's. You'll soon earn £500.
There is so much temp work in this country you will have no problem working off the £500 YOU have spent.
I suspect if they hadn't increased the overdraft and you went over your previous limit you would be on hear complaining about the bank charges you incurred.
"not one penny touchs my pocket all the money is going to the bank in charges".....are you sure.....every single penny of your salary goes to pay bank charges....wow, you need to change banks.
Just FOUR weeks ago you were offered a job for 35hrs a week at £18.94 an hour and your rent was only £70 per week. you also said "i don't have that many out goings"
and you total overdraft is only £1K
I give up - you have no problem here.
2007-02-12 06:26:51 · answer #2 · answered by Michael H 7 · 5⤊ 0⤋
I note you have improved your position with the bank by virtue of the refund. However, you are still left with the real question . . . how do you get rid of the existing debt?????
Right, take it from me. I am a retired banker. The debt is yours and yours alone, you have 'unwittingly' used the the funds for purposes of your own choosing. Please understand I am favourably disposed to your problem.
Method. Tell your bank in writing that you strayed into uncharted territory when they raised your limit. You now want to be given the opportunity over a period of time to regularise the position in a positive way. ie you cannot do this on the overdraft system because you will never know where you are or whether you are ever reducing. Therefore, the proposed method is to ship the 'debt' onto a loan acount and for you to clear it over a reasonable' period of time. This is determined by how much you can afford to repay each week; from this method you will see yourself clearig the debt in a positive and realistic way.
The isue is now what the interest charge will be on the loan? I consider, bearing in mind that there is a sign of entrapment here, and that the bank realising sensibly that the object of the exercise is for your debt to be cleared to the benefit of both parties, that a rate of 3% over bank base rate is fair and equitable. It needs to be said that this is to operate on the reducing balance, if you are unfamiliar with this term ask them to explain it to you.
Now to save a lot of problems, print this out and send it to the bank with your letter. Don't be discourteous, keep to the theme.
For the Bank's benefit, I am a Fellow of the Chartered Institute of Bankers and I, prior to retirement was skilled in this very area.
My Good Wishes.
2007-02-12 08:28:22 · answer #3 · answered by greatbrickhill 3 · 1⤊ 0⤋
If you have spent the money then you shouldn't have. How ever could it be the banks fault. Don't you have any responsibility for your own finances. The bank gave me an overdraft limit of £650 because my pay went in each month a day after my mortgage went out. I didn't sign anything and I didn't ask for it but I think it was very good of them to try and keep me out of trouble and .....I didn't spend it but it took enormous effort
2007-02-13 13:07:39 · answer #4 · answered by Professor 7 · 0⤊ 0⤋
They did this two months ago and you only just realised you were overspending by that amount!!! You really need to take some responsibility for this mess - go into the bank and see if they can change the overdraft to a repayment loan at a rate of repayment you can afford until you are working again.
2007-02-12 10:12:41 · answer #5 · answered by TreesRGreen 4 · 0⤊ 0⤋
It seems that the bank is helping you. If the overdraft had not been increased - not only would your cheques have bounced and bills not been paid, but you would have also paid 25 pound per bounced cheque.
I find it hard to believe that your weekly wage is going in bank charges - this would only happen if you were spending far more than your overdraft facilities.
I think you need to go into your bank and ask them what is happening and what can they advise. Be polite they are your lifeline at the moment. Also go to CAB for advice.
Seems that you are spending far more than you are earning and need to look at that aspect.
2007-02-12 06:33:01 · answer #6 · answered by Biz Guru 5 · 2⤊ 1⤋
You need to sort out what you have used of the overdraft, get yourself on a level, and then tell them to reduce the overdraft.
They won't tell you when they have done this sort of thing, it falls to you to have gone in right at the beginning and ask them to put it back to where it was.
I have weekly statements just for this kind of reason. I can keep an eye on things that way.
Good luck.
2007-02-12 06:28:00 · answer #7 · answered by www.shutup.com 2 · 1⤊ 0⤋
You borrowed the money from the bank, so now you have to pay them back.
Talk to the bank, explain that they increased the limit without telling you, and they will probably refund you the interest on the extra £500.
2007-02-12 06:27:33 · answer #8 · answered by Gnomon 6 · 0⤊ 1⤋
You might go the the bank and talk to a bank officer.
2007-02-12 06:20:18 · answer #9 · answered by khorat k 6 · 0⤊ 0⤋
they should have informed you but if you were spending that, it was the wise thing to do. Daily charges on this much illegal overdraft would be astronomical in charges!
2007-02-12 06:24:15 · answer #10 · answered by rose_merrick 7 · 0⤊ 0⤋