My Daughter and her overdraft!!!!

[stuffw258]

Hello all

 

Would it be possible to give me some advice on my daughter and her overdraft.

 

1. If my daughter keeps over drawing on her LloydsTSB 19 account (which does not have an overdraft) does this affect my credit rating? She receives warning every month.

 

2. If this does can I close her account, as I had to go to the bank with her on her 16th birthday to open it with her. She is now 17 years old.

 

Any answers greatly appreciated.

 

cheers Kev Whyte.

[mcjohnson]

I would be interested to learn how she is managing to overdraw on an account that is not supposed to have an overdraft facility?

[stuffw258]

Hi

Leanne is not allowed to but the bank lets this happen and send a letter out informing her that she has over drawn.

[stuffw258]

I have just spoken to the bank and they inform me that this is not going to affect my credit history, as this is all against Leanne. So I will have yet another talk to her and then let her make her own mistakes from now on.

[sallysas]

I thought it was unlawful for anyone under 18 to be given credit. Isn't that happening in this instance?

[stuffw258]

It looks like they are. But that is between the bank and Leanne now.

[Weird Al Yankovic]

I would be interested to learn how she is managing to overdraw on an account that is not supposed to have an overdraft facility?

 

By penalty charges.

 

I was with the A&L until last week when they closed my account. I had no overdraft facility with their basic account but hit me with £575 penalty charges in just two months (when I lost my job).

 

They now say I am £575 overdrawn.

[blitz]

You better be claiming it back Weird Al!

 

Anyways stuff whilst it may be between your daughter and the bank don't feel the need to ignore the issue, if charges are being made on the account (for going overdrawn etc) it might be worthwhile making sure that the account is positive and helping your daughter claim back any fees.

 

I managed to get overdrawn (due to a failed DD at 14 after a cold letter advertising a prize if I signed up for something, stupid I know but thought I could beat the system, my lack of organisation let me down), after a massive argument with the bank they refunded all the money.

 

Just make sure there are no DD/Standing Orders on the account, cheques are not made and the bank refuses anything that will take her overdrawn. That way there should be no way to go overdrawn, if need be get her to surrender her card if everything else fails.

[stuffw258]

Thanks for all your replies, Leanne has a LloydsTSB 19 account, which is like a training account. She has no overdraft, but they don't give her penalties for going over, just a letter. The wife & myself have had a talk with Leanne tonight and pointed out where she is going wrong, and that she has to talk to the bank about managing her account better. Leanne has agreed. The old saying is "you can take a horse to water but you can't make it drink". This is very true with my daughter. Leanne will be 18 soon and I hope she learns her lesson.

 

Once again thanks for all the advice. I am happy that my credit history is not going to suffer.

[Bigmac versus]

Hi stuffw258 your daughter is lucky to have such carent parents to guide her through this, i have said for years that there should be some advice on finances within the final year of school as so many young people fall foul of bad lending practices.

[davethorp]

Presumably she has a visa electron card with the account which may be how she has overdrawn it. In theory visa electron does not allow overdrawing however in practice there are a number of loopholes that allow you to overdraw and she may have picked up on one of these (or as someone else says it could be from penalty charges in which case she may be able to claim them back).

 

Interestingly, I also managed to overdraw my under 18s account with HSBC when I had it ten years ago. However this account came with a £50 interest free buffer zone in case of accidental overdrawing