Over my overdraft
Question
The bank has charged me for going over my overdraft. I went over the limit because of a couple of direct debits and, stupidly, my overdraft charges. They have offered to let me pay the charges in two payments but this is still more than I can afford. I can't work at the moment because I've had an operation so I don't know what to do, can you help me?
Answer
There's been a lot of controversy in recent years about banks charging unreasonable amounts for unauthorised overdrafts and, following a high profile campaign, around one million people have managed to get money back. There's been a legal case relating to the issue, so check sites such as MoneySavingExpert for the latest news and advice.
Whether you decide to make a claim or not, initially, the best thing to do is to contact your bank, make anappointment with a manager or adviser and explain your circumstances tothem. It could help them to explain your situation and the effect it ishaving on your finances. It's also worth asking if you can extend youroverdraft and repay it over a longer period.
You might also want to contact your local Citizen's Advice Bureau (CAB) to see if they can negotiate on your behalf.
Alternatively, you could consider taking out a separate loan to cover this temporary problem. But it's important to remember that by doing this you could find yourself in even more debt in the longer term.
It might also help to call National Debtline on 0808 808 4000. They can provide you with free, confidential and independent advice on how to deal with your debt problems.
Updated: 12/04/2010
Question answered by CAB
