Overdraft and benefit payments

[Surfer01]

We have a reducing Nationwide overdraft of £760 at present. Charges on the account over the last 6 years plus interest exceed £2200. We have managed to redcue tghe overdraft from £2000 down to the current level over the past 3 years.

In that time we have only exceeded the limit once and that was because we made a payment at the beginning of April along with numerous others using the debit card, but the payment was not processed until the end of April, 3 weeks later. Unfortuantely in the meantime we forgot that we had made the payment so hold up my hands on that one.

I was very annoyed with Green Flag as the payment was made on or around the 6th of the month but in their infinite wisdom they only processed it on the 28th April.

Generally we find the Nationwide account easy to handle as it reflects the current balance and also available balance, i.e. if you buy from a supermarket and spend £20 it is shown almost immediately. Also applies to any credits added to the account.

If we have all our benefits paid into the account plus my wife's statutory sick pay, can Nationwide cancel the overdraft in the event we accidentally exceed the overdraft limit and in effect claim all our benefits plus my wife's sick pay?

[Surfer01]

Any one able to offer some advice before we strart using the account again?

[Antiscam]

Nationwide have the right to demand immediate repayment of an overdraft at any time.If you paid your income into your account you face the possibility that it could all be used to pay off the overdraft immediately . To be fair they do usually give warning of this but do you want to take the chance? I was recently in this situation and opted for a parachute account which gives me a basic current account with full online access so I can see where I am.They also do Direct Debits and give you debit card for shopping.