Thread: Will they remove my overdraft ??

I am currently helping my friend reclaim her charges from the Woolwich. She has already sent her prelimary letter, and the lba is printed and ready to send on the 27th December. She has an overdraft of £1000 and when she deposits her wages, she is still overdrawn. She depends on it to run her account day to day.

She is so worried that the Woolwich will remove her overdraft as a retaliation tactic to her prelimary & LBA.

What is the likeliness of this happening? Has this happened to any Woolwich customers so far? And if they were to do this, would they have to give written notice of the removal?

Thanks

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• Charges/overdraft interest/overdraft excess fee???

Hi Paddy

Yeah, she has already opened a Natwest Step account, but being a basic account she can't pay her bills with it, (ie. by card or cheque etc). It will take time to setup the direct debits. The lba is due to be sent on the 27th, I'll make sure she sends it after she's drawn her money out just to play safe.

I don't think the Woolwich would remove it until at least she had began the claim through the court. Her account is relatively well managed (in that she is not spiralling out of control and permanently over her agreed limit).

Ive read somewhere they can use the reclaimed charges to pay off the OD. And yes a parachute account is the best idea.
AL

Get her to start using the parachute account ASAP for her daily banking, especially if a salary is paid into it. As Al says they will apply any money in the account to the overdraft first in the event they close the account. This could leave her with nothing to live on.

Can they close the account whilst the charges and as such the account is in dispute?

In theory Delboy, no. But these sort of retaliatory tactics can happen. Her overdraft is £1000 and her wages of £800 have just got in. If they removed the overdraft she would in theory lose her wages.

She doesn't have internet access so i'm helping her. She has got a parachute accouint, but her Woolwich acount is easier for her, as she has a cheque book etc.

The Step account she has with Natwest has no cheque book and just a cashcard. Her local Natwest is in town so it's a little inconvenient.

I've told her to withdraw her wages once they've cleared, and then send the lba I've got ready for her. Just top lay safe.

I think if she gets an offer, she'll be tempted to accept. Although I'd like her to pursue them, I don't think she'll have the determination.

I'll keep you all posted!