Are banks allowed to do this?

[keith_henson]

Originally Posted by Sparky750

In short mate yes they can. they did exactly the same to me when i'd just started my business with an old account i'd forgotten about. Go into a branch and make a deposit whilst there make a formal complaint to the in branch manager I know it wasn't him/her on the phone but they are the representative for the bank . Try not to use the account at all and make a small deposit each week or month as and when you can as long as you're making deposits they should leave you be, once the overdraft is paid cancel all accounts with them stating the person you dealt with on the phone as the reason. as i remember you usually get a warning letter first before they demand money

no warning letters at all, just a note saying that i should call, and that was yesterday it arrived!

As it happens, im going to pay 150 a month off the account, and close it within 6 months. Simple as

EDIT - i may close the account in 3 months. 1500 quid sat by waiting to be paid in. It happens there goes my new boiler and central heating system

[Sparky750]

I hate banks with a passion they're like insurance companies they know you need them so just act like tw*ts

[Scuby]

Originally Posted by Sparky750

I hate banks with a passion they're like insurance companies they know you need them so just act like tw*ts

In fairness to them, they give a lot of student a lot of free money for a lot of years. When an account is sitting unused for months / years on end at the limit of its interest-free overdraft, it is costing them money. If you're using it, the vague theory is that when you cease being a student and get a job you'll use the account, lift it out of overdraft, and they'll earn money back from you once you're in credit. If it's not being used, there's absolutely no reason for them to ever want to let you keep your free money and they'll ask for it back.

When my student overdraft was reduced I got a month's warning, which was handy. Still difficult to find £500 (the amount mine is reduced by each year) at a month's notice, and a little harsh in this case to ask for it immediately, but talking to them can usually sort something a little more sensible out, as appears to have happened.

David

[David]

Originally Posted by Diving Dude

Go to the citizens advice bureau.

One of the things they will suggest is writing to them to say you will not accept any further charges re interest or for producing letters.
Secondly they will tell you that you must pay something, offer them say £20 a month and barter from there.

saw something about this. Banks are pressuring people to take out more loans at a higher rate. Citizens advice know all about it and have a solution in the form of standard letters. go see them

David

[Sparky750]

Originally Posted by Scuby

In fairness to them, they give a lot of student a lot of free money for a lot of years. When an account is sitting unused for months / years on end at the limit of its interest-free overdraft, it is costing them money. If you're using it, the vague theory is that when you cease being a student and get a job you'll use the account, lift it out of overdraft, and they'll earn money back from you once you're in credit. If it's not being used, there's absolutely no reason for them to ever want to let you keep your free money and they'll ask for it back.

When my student overdraft was reduced I got a month's warning, which was handy. Still difficult to find £500 (the amount mine is reduced by each year) at a month's notice, and a little harsh in this case to ask for it immediately, but talking to them can usually sort something a little more sensible out, as appears to have happened.

David

So they charge business accounts to pay for bloody students great banks = cnuts
insurers = mega cnuts

[Diving Dude]

Originally Posted by Sparky750

banks = cnuts

Agreed.

So they offer students up to 1k interest free overdraughts...why?

Because they know students are stupid and will spend it on booze and sometimes food.

They do it so they can trap them into years of paying it back, bacause most students go into low paid jobs and can't afford to pay it back and then the interest starts to mount up.

l think any bank that offers students overdraughts deserves to loose the feckin lot.

[Scuby]

Originally Posted by Diving Dude

They do it so they can trap them into years of paying it back, bacause most students go into low paid jobs and can't afford to pay it back and then the interest starts to mount up.

Don't know of anyone in that situation. However I know of a lot of people (recently become ex students) who chose their bank based on things like the amount of interest free overdraft they could get, and are now paying £1500+ a month into that account and are well into the black. And that expected loyalty (I know very few - if any - people who've changed bank since leaving uni) is why they offer benefits to students.

David

[liamm]

i change banks on a fairly regular basis, every few years. The loyalty thing is bull poo, if you shop around - like insurance and mortage ect - you can save quite a bit. Its a hassle but £50 less fees or extra interest is a days boat diving.

[CatB]

My bank helpfully decided to change the terms of it's graduate account over the summer - a few weeks before they moved all of that years students to the graduate account. Instead of reducing the free overdraft by £500 a year, they just removed it altogether. I think they thought ex-students would just get on and pay the interest charges - they didn't, they left the bank pretty swiftly. The bank changed the terms of their graduate account back within a month to try to retain the remaining graduates.

I think we are getting less loyal to banks and wiser about moving around. I am certainly thinking of moving my account when I graduate but I'll look around at the deals and also go into the branches and look at the way they handle their customers.

[keith_henson]

well, the bank still have not called me, even though i was "promised" to be contacted by one of their senior lending staff managers.

Off to the main branch i go this afternoon.

Already closed the savings account with them this morning.

Oh and as for being an ex-student, i graduated in 2006, thus the OD facility runs to june 2009. And as for t+c's, they apparently changed them but they wont state when they did this.

Ho Hum - only if i could put my money under the matress every month.