My bank is taking my overdraft off me & im repaying monthly....

Question

I need a bit of help with this please.... my bank has decided to take my overdraft facility off me which is 1000 and im currently overdrawn by 800, they have accepted that i repay the overdraft back via monthly payments as I couldnt afford to repay all at once. But i just dont understand how it will all work when it comes to the day they take it off me, as what if have money going in that day? will the bank take this? even if it still makes me overdrawn with the money ive had put in that day? Im so confused, please help! thanks.

Answer 1

Get the conditions from your bank in writing. See what interest rate they will be charging. If you can get a cheaper interest rate loan, consider getting it to pay off this loan.

Answer 2

If they have agreed a monthly pay back it usually works like this:

They reduce the overdraft by the agreed amount each month so that anything you pay in over & above the 'payback' amount will still be available to you.

It's a good agreement, but be extremely careful that you are aware of the dates it will reduce so that you are not over the limit. If you are they can cancel the overdraft all in one go.

Check with your bank that they are using this method & ask them to explain the detail so that you stay out of trouble & don't end up with it on your credit record.

Answer 3

The small print means the bank can pull the rug from under your feet and withdraws your overdraft facility. They gave you 30 days notice. If you speak to them, they will put you on a reducing overdraft, so when your wage goes in each month, the overdraft level falls (say) £50.

Just means they make it penny sensitive so if you go over the overdraft, they'll sting you with illegal fees.

Answer 4

Hi

If your bank has agreed to take for example £100 a month to clear your overdraft then that is all they should take. However if there is no agreement on what they will take, they could just take what ever is paid into the overdrawn account .

You can either check with them and make an agreement or set up another  account with them or with another bank and have your income/ wages paid into that .Then make payments into the overdrawn account.

Hope this helps .

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Answer 5

The money going in your account will all be applied to your OD.

Answer 6

Stop all automatic deposits they will take the money. You need to open an account at a different bank and cash your checks there until you have paid back the $800.00. All the payment plan means is that as long as you are paying them they will not fully close the account or report it. Make sure you pay the payments though, because if you do not you can be denied a bank account at other institutions later on.