Resend my activation email : Register : Log in 
BCF: Bike Chat Forums


Bank legalities

Reply to topic
Bike Chat Forums Index -> Random Banter
View previous topic : View next topic  
Author Message

Alex-RS
Traffic Copper



Joined: 23 Jun 2008
Karma :

PostPosted: 19:43 - 04 Dec 2008    Post subject: Bank legalities Reply with quote

Say you've been given an overdraft limit of £2,850, and you are £2,600 in overdraft, are the bank allowed to lower your overdraft limit to 2 grand? Therefore they then start charging you for the £600.
Bearing in mind, they can see from your statements that you don't earn enough to have that deducted from your account and still pay the direct debits you have.
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

Asharin
World Chat Champion



Joined: 05 Oct 2008
Karma :

PostPosted: 19:56 - 04 Dec 2008    Post subject: Reply with quote

I can't see how that can be legal.
____________________
I can't sing: https://laughinginpurgatory.bandcamp.com and https://soundcloud.com/laughing-in-purgatory
I am Dyslexic of Borg, resemblance is fertile, your ass will be laminated.
2008 Honda Dullsville 700
 Back to top
View user's profile Send private message You must be logged in to rate posts

Itchy
Super Spammer



Joined: 07 Apr 2005
Karma :

PostPosted: 19:58 - 04 Dec 2008    Post subject: Reply with quote

Hold on I was reading this in a text book , overdrafts are subject to on demand and thus the credit facility can be revoked and immediate payment be demanded.....

Its all in the small print
____________________
Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

Alex-RS
Traffic Copper



Joined: 23 Jun 2008
Karma :

PostPosted: 19:59 - 04 Dec 2008    Post subject: Reply with quote

asharin wrote:
I can't see how that can be legal.


My thoughts exactly. It's a mate, and he also has another account with them in which he is 2 grand overdrawn(at the limit). In my opinion, it's extremely irresponsible lending by the bank, he's only 18. They're doing it on christmas day, so only given him 3 weeks notice. I said he has to get legal advice here, but just wanted to see if anyone had an idea on whether this should be allowed.
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

Alex-RS
Traffic Copper



Joined: 23 Jun 2008
Karma :

PostPosted: 20:01 - 04 Dec 2008    Post subject: Reply with quote

Itchy wrote:
Its all in the small print


That's what he was afraid of.
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

SlimRick
World Chat Champion



Joined: 29 Sep 2008
Karma :

PostPosted: 20:08 - 04 Dec 2008    Post subject: Reply with quote

Open another bank account and fvck that one off Thumbs Up
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

Renton
World Chat Champion



Joined: 29 Sep 2008
Karma :

PostPosted: 20:32 - 04 Dec 2008    Post subject: Reply with quote

I don't understand why a bank would give such a high overdraft limit.

My bank will only allow an amount equivalent to my monthly salary, therefore I would not be living in my overdraft, and to be honest I'm quite grateful of that.
____________________
This is my motorcycle. There are many others like it, but this one is mine.
Without me, my motorcycle is useless. Without my motorcycle, I am useless.
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

M1ke
Ped Boi



Joined: 11 Jun 2002
Karma :

PostPosted: 20:33 - 04 Dec 2008    Post subject: Reply with quote

Nationwide by any chance?

I'm afraid your mate hasn't a leg to stand on. It is common knowledge that overdrafts can be revoked at any time, it will have been displayed/read out to your friend when he applied. All banks operate this policy for personal and business bank accounts. It is however rare for them to do this, until recent times anyway.
 Back to top
View user's profile Send private message Send e-mail Visit poster's website You must be logged in to rate posts

M1ke
Ped Boi



Joined: 11 Jun 2002
Karma :

PostPosted: 20:45 - 04 Dec 2008    Post subject: Reply with quote

From First Direct website
6.5 We may reduce or withdraw your overdraft limit at any time and demand in writing that you pay any money you owe us immediately.


From Nationwide website
Overdrafts are usually reviewed every six months and may be reduced or removed depending on the following factors:


the conduct of the account, e.g. has it exceeded an authorised limit
the conduct of any other accounts that you may hold with us
whether the account is being used regularly
whether the level of funds being paid into the account is sufficient to support the overdraft, and
the credit score based on the account behaviour


Etc
 Back to top
View user's profile Send private message Send e-mail Visit poster's website You must be logged in to rate posts

Pie-Roe
World Chat Champion



Joined: 05 Feb 2007
Karma :

PostPosted: 00:16 - 05 Dec 2008    Post subject: Reply with quote

I got offered 2.5 grand overdraft, I'm 18 earning between 180 and 270 a week.

I only got my 200 for emergancies, went into it once on a night out Mad

Pyro
____________________
Previous: GSF600, FZR600 x2, ZXR750, XT600 Tenere, CB125, CZ125, ETZ 250, ER5, CCM R30, DRZ400, RF600x4, RF900x2, GS500, VTR1000F, 640 SMC, CB250 NIGHTHAWK, GT550x3, GPX750 TE610, CB500, X11x2, SV650, ZING 125, TL1000R,CB250 Superdream, CBR1100XX
 Back to top
View user's profile Send private message You must be logged in to rate posts

iooi
Super Spammer



Joined: 14 Jan 2007
Karma :

PostPosted: 11:43 - 05 Dec 2008    Post subject: Reply with quote

He needs to talk to them and see if they can come to some agreement.
They may allow him to reduce it over a few months by waiving the charges, while he is over the limit. Or allow him to take a loan for the O/D and clear it completly.

The main thing is to talk to them and explain the situation. There must be some reason they have done this, possibily related to other accounts/loans/CC he has elsewhere.
Does he have money problems ???

One can only guess they were earning a lot more at one point to get such a large O/D limit.

Many banks are now looking at O/D limits and income into the accounts in a effort to reduce the chances of people defaulting. This is to protect not only the bank, but also the person from getting to the point that they ruin themselves.

In reality a O/D should be no more than 1 months income.

Any credit facility can be withdrawn at any time, so long as the notice periods in the T/C are followed.
____________________
Just because my bike was A DIVVY, does not mean i am......
 Back to top
View user's profile Send private message You must be logged in to rate posts

Robby
Dirty Old Man



Joined: 16 May 2002
Karma :

PostPosted: 11:45 - 05 Dec 2008    Post subject: Reply with quote

That is the standard practice with overdrafts, they're repayable on demand.
If you're taking the piss, like you've been in the red and getting gradually deeper into it for a year, they'll reduce what you're allowed. They did it to me, and cut my overdrafts from 10k to 2k.

I moved the excess onto a personal loan, and paid off the remainder. All nicely squared away now.

Overdraft is intended for short term borrowing, long term they want your to be structured and put the debt into a loan.
 Back to top
View user's profile Send private message You must be logged in to rate posts

Tonka
World Chat Champion



Joined: 11 Jun 2008
Karma :

PostPosted: 12:03 - 05 Dec 2008    Post subject: Reply with quote

I know that it's easier said than done and that I'm speaking from experience having had an overdraft before, but seriously they are really dangerous ground!

The Banks have you over a barrel and I think what Robby did is the only way to get straight, however, even getting an unsecured loan these days is very difficult if you already have an exceeded overdraft on your record.

Tell your mate he/she needs to get another account for their wages to be paid into, so that they make sure they always have some money available, then go to the Bank to renegotiate some type of loan or repayment schedule that is affordable and has it all cleared as quick as possible. Then don't use an overdraft again!

I use Halifax Cardcash Accounts that have no overspending possibilities to act as a safety net to stop me ever making a mistake. I have 2 - one for wages and where all the DD's come out, the other for spending money which is transferred online by me each month. When that runs out it's 'beans on toast' time. Get Bank Accounts online and keep an eye on them - it's painful and depressing knowing you've got no money, but nowhere near as bad as a 'surprise' debt and knowing you're stuffed for months to come. Reality is harsh sometimes Crying or Very sad
____________________
'The core of a man's spirit comes from new experiences'
Suzuki SV650S (Clean); Yamaha XT250 Serow (Dirty)
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

MarJay
But it's British!



Joined: 15 Sep 2003
Karma :

PostPosted: 22:53 - 05 Dec 2008    Post subject: Reply with quote

The simple fact of the matter is, an overdraft is for emergency use only. Its for stuff like when your washing machine has broken and you have an interview on Monday with no clean shirts. Or your boiler breaks and you have no gas cover.

The amount of people I've met who seem to think its simply 'money I can spend' actually worries me a lot.
____________________
British beauty: Triumph Street Triple R; Loony stroker: KR1S; Track fun: GSXR750 L1; Commuter Missile: GSX-S1000F; Cheap project: CBR900RR FireBlade
Remember kids, bikes aren't like lego. You can't easily take a part from one bike and then fit it to another.
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

Alex-RS
Traffic Copper



Joined: 23 Jun 2008
Karma :

PostPosted: 23:57 - 05 Dec 2008    Post subject: Reply with quote

MarJay wrote:
The amount of people I've met who seem to think its simply 'money I can spend' actually worries me a lot.


That was his attitude, very worrying.

Cheers for all the comments from everyone.

M1ke, yes it is Nationwide, and your post pretty much clears the whole thing up.

He asked for a loan to pay it, they said no. He has another account with them, which is £2000 overdrawn, at the limit Rolling Eyes
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

iooi
Super Spammer



Joined: 14 Jan 2007
Karma :

PostPosted: 18:30 - 06 Dec 2008    Post subject: Reply with quote

So he has 2 acc's one with a £2850 & another with a 2K limit...

He's lucky that he has not had the limit cut to zero on one of the accounts.

They should only be used as a short term loan... Just look at the interest rates charged.
____________________
Just because my bike was A DIVVY, does not mean i am......
 Back to top
View user's profile Send private message You must be logged in to rate posts

st3v3
Super Spammer



Joined: 16 Oct 2006
Karma :

PostPosted: 22:50 - 06 Dec 2008    Post subject: Reply with quote

My bank(TSB) screwed up my D/D's and I found out I didn't have enough to cover something a day before it was due out, it was a £450 O/D and I only set it up to pay for my bike test before the new test came in. When I found out it was screwed up I had to take out a £1000 loan to clear it or face the daily charges which would have been over a fortnights worth, I got the loan and paid off the O/D, the bank who wouldn't help me when I was nearly buggered offered me a 2.5K loan when the O/D was settled, I was told as it was paid off they would cancel the overdraft, it now seems to still be there which I'm not happy about so must cancel it(useless at checking and sorting stuff until it's vital). Now everyone keeps spamming me with cash/loan offers, can they do this? I'm sorted now and I'm only paying the loan but how can your mate get into so much debt?

I only have what's left of my loan to my name which is nothing compared to some peeps debts but I feel wrong about it all the same. It's too damn easy. Thumbs Down
____________________
Roger wrote: Women don't get damp for clingy puppies. Get some better happy pills, hit the gym & buy a medallion the size of a dinner plate. Job done
 Back to top
View user's profile Send private message You must be logged in to rate posts

Alex-RS
Traffic Copper



Joined: 23 Jun 2008
Karma :

PostPosted: 13:30 - 07 Dec 2008    Post subject: Reply with quote

st3v3 wrote:
My bank(TSB) screwed up my D/D's and I found out I didn't have enough to cover something a day before it was due out, it was a £450 O/D and I only set it up to pay for my bike test before the new test came in. When I found out it was screwed up I had to take out a £1000 loan to clear it or face the daily charges which would have been over a fortnights worth, I got the loan and paid off the O/D, the bank who wouldn't help me when I was nearly buggered offered me a 2.5K loan when the O/D was settled, I was told as it was paid off they would cancel the overdraft, it now seems to still be there which I'm not happy about so must cancel it(useless at checking and sorting stuff until it's vital). Now everyone keeps spamming me with cash/loan offers, can they do this? I'm sorted now and I'm only paying the loan but how can your mate get into so much debt?

I only have what's left of my loan to my name which is nothing compared to some peeps debts but I feel wrong about it all the same. It's too damn easy. Thumbs Down


No idea, just spending money on crap basically.
I'm in a bit of trouble this month with money, so applied for a £200 overdraft last weekend, got a letter yesterday saying I wasn't going to be given it, and if I wanted, I could ask again in 3 months. Fuck sake, my irresponsible mate can get almost 5 grand of overdraft, and they wont give me 200 quid for a hard month.
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

Charlie
World Chat Champion



Joined: 27 May 2007
Karma :

PostPosted: 16:21 - 07 Dec 2008    Post subject: Reply with quote

https://www.bbc.co.uk/iplayer/episode/b00fvc73/b00fvbtv/How_to_Rob_a_Bank/

How about £40,000 in debt in 8 months and nothing to show for your name.
____________________
Past: Honda x8rs, Honda City fly, Honda Hornet 250, Honda VFR750, Yamaha xt600e.
Current: Honda CBR929RR & Yamaha XT660Z Tenere
 Back to top
View user's profile Send private message You must be logged in to rate posts

st3v3
Super Spammer



Joined: 16 Oct 2006
Karma :

PostPosted: 23:40 - 07 Dec 2008    Post subject: Reply with quote

Alex-RS wrote:
Fuck sake, my irresponsible mate can get almost 5 grand of overdraft, and they wont give me 200 quid for a hard month.
I know it's fucked up, I was initially refused my £450 O/D then offered a 3K loan for a new bike in the same call..... can't win.
____________________
Roger wrote: Women don't get damp for clingy puppies. Get some better happy pills, hit the gym & buy a medallion the size of a dinner plate. Job done
 Back to top
View user's profile Send private message You must be logged in to rate posts

ms51ves3
Super Spammer



Joined: 08 Jun 2007
Karma :

PostPosted: 23:41 - 07 Dec 2008    Post subject: Reply with quote

ds55 wrote:
https://www.bbc.co.uk/iplayer/episode/b00fvc73/b00fvbtv/How_to_Rob_a_Bank/

How about £40,000 in debt in 8 months and nothing to show for your name.


You watched it too Laughing
 Back to top
View user's profile Send private message You must be logged in to rate posts
Old Thread Alert!

The last post was made 17 years, 322 days ago. Instead of replying here, would creating a new thread be more useful?
  Display posts from previous:   
This page may contain affiliate links, which means we may earn a small commission if a visitor clicks through and makes a purchase. By clicking on an affiliate link, you accept that third-party cookies will be set.

Post new topic   Reply to topic    Bike Chat Forums Index -> Random Banter All times are GMT + 1 Hour
Page 1 of 1

 
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You cannot attach files in this forum
You cannot download files in this forum

Read the Terms of Use! - Powered by phpBB © phpBB Group
 

Debug Mode: ON - Server: birks (www) - Page Generation Time: 0.11 Sec - Server Load: 0.62 - MySQL Queries: 13 - Page Size: 115.98 Kb