# Bank or me Irresponsible?



## problemchild (1 Nov 2010)

Just looking for opinions, 
Quite a number of years ago I banked with a well known institution. I had just turned 18, started a new job and my bank offered me quite alot of financial packages.

I was offered an overdraft facility of €500.  Being 18 and very much stupid I began spending, and spending and spending! 
Not untill my account reached €8500 overdrawn did my bank stop the over draft facility. 

In my own teenage blinkered foolishness I believed that my wage was clearing my balance and I was still under my €500 overdraft limit.

I received a letter to stay I was required to pay the full €8500 or Id be taken to court.  I was 19 then, completely shocked and hadnt a clue what to do.  I came to an arrangement to make repayments.

I did question why I was allowed to over spend that much, branch manager response, " You spent, You pay".  

I have been repaying ever since, that was 2004, Its now 2010, I still owe over €3000.  

The interest keeps mounting up so I will be paying this for years to come.

Is this my own problem and I have no complaint with the bank or do you think they owed me a duty of care given my age and failure to restrict my overdraft facility?


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## feltox (1 Nov 2010)

A number of points above

1. Big difference from 500 to 8500 - No excuse to excuse a person not realising overdraft has gone to this level in one year

2. You don't say your wage at time which would be indicator of limit they would give you

3. They would have to have been some communication to increase limit- if not bank does have a weakness here (normal guidelines was double limit if you asked). 

Just cant see a bank allowing overdraft to go from 500 to 8500 and keep honouring payments

4. No duty in regard age- you were over 18


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## truthseeker (1 Nov 2010)

I think its your own responsibility. 

You should have been keeping an eye on what you earned Vs what you were spending.


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## LM26 (1 Nov 2010)

'I believed that my wage was clearing my balance and I was still under my €500 overdraft limit.'

How did you think the above was happening? What led you to believe this?


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## problemchild (1 Nov 2010)

Wage was about €500 - €600 a week.  Paid on a monthy basis.  
I had no contact with my bank in relation to my overdraft.  
I had turned 18 about 5 months before and this was my first experience with lending, had no idea how the whole system worked.
My bank never really explained the system to me.  I just presumed when It reached its limit I couldnt spend anymore.

I was completely shocked when I seen the balance.

I have being paying back ever since.  I even put off going to college to try pay it off.

Its only recently I have been made aware that the bank were very irresponsable to allow that to happen.


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## millieforbes (1 Nov 2010)

Sounds a very strange situation to have found yourself in. Did you receive any bank statements during the year you were running up the debt?

Is the debt still an overdraft now or has it been converted to a loan?


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## problemchild (1 Nov 2010)

LM26 said:


> 'I believed that my wage was clearing my balance and I was still under my €500 overdraft limit.'
> 
> How did you think the above was happening? What led you to believe this?


 
The bank said once my overdraft was reached, I would not have any access to funds.  But payments never declined, so I just presumed that I had funds available.

I understand now and am very careful with with money.


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## feltox (1 Nov 2010)

problemchild said:


> Wage was about €500 - €600 a week. Paid on a monthy basis.
> I had no contact with my bank in relation to my overdraft.
> I had turned 18 about 5 months before and this was my first experience with lending, had no idea how the whole system worked.
> My bank never really explained the system to me. I just presumed when It reached its limit I couldnt spend anymore.
> ...


 
Might be worth getting bank statements for the year/year and half that the balance went up and do spreadsheet of spending to vouch it, they could be a lot of bank fees and interest

Also how do you know you spent that amount- What stopped a 4k cheque been taken from your account in error in regard to some one else

Their is as i said earlier to much of gap between 500 and 8500 not to notice

If everything is spent by you and is your spending- get a copy of orginal overdraft letter, get name of who was in charge of your account for that time period and copy of any letter/bank statement they issued to you during this time

If everything above board arrange meeting in bank for them to explain to you how your limit went up


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## problemchild (1 Nov 2010)

millieforbes said:


> sounds a very strange situation to have found yourself in. did you receive any bank statements during the year you were running up the debt?
> 
> Is the debt still an overdraft now or has it been converted to a loan?


 
Its still a current account balance, In spetember of 2004 they rejected 2 direct debit payments, I called and they said my account was over drawn by too much.  They never said the amount so  I let my wage go through to clear it a bit.  It was actually €3002 overdrawn at the time!!! 
They could of gave me some idea just how much! 
The first real contact by the bank to me was march 2005 to say the balance was €8500!!!


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## problemchild (1 Nov 2010)

feltox said:


> Might be worth getting bank statements for the year/year and half that the balance went up and do spreadsheet of spending to vouch it, they could be a lot of bank fees and interest
> 
> Also how do you know you spent that amount- What stopped a 4k cheque been taken from your account in error in regard to some one else
> 
> ...


 
I requested bank statements from the bank last year.  I can see all the transactions.

only 2 payments declined the entire time.  I called the bank once I was aware this happended.  
One was ESB, and the other was my phone insurance. Got letters from both companies, thats how I knew. 
All over-the-counter transactions went through without being declined, so I really had no idea what so ever there was a problem.

When I tried to question the whole thing last year the branch manager said It had to be paid, which I was doing, but refused to meet with me or answer why I was allowed to over spend on the overdraft when I has set an overdraft limit of €500, I had never ever upped the amount.


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## feltox (1 Nov 2010)

I would push for a meeting with the Manager and get him to explain what happened. I would email/phone till I get a meeting as something does not add up.

 Back at that time I was a very high spender as well but had to get permission to double my limit which was set at double by existing overdraft limit.

Did you purchase something large at time or what was money spent on?


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## millieforbes (1 Nov 2010)

"I requested bank statements from the bank last year. I can see all the transactions."

Were they all your transactions? How many are we talking about?

were the transaction on a laser card? I find it baffling that the bank honoured all these transactions - usually cash withdrawals would be stopped straightaway but laser transactions were not all checked back to the bank so some could go through. You must have slipped through the net somehow to be allowed run up such a huge overdraft. Was your account associated with someone of stronger credit history eg parents or work?

You should look to convert the balance from an overdraft to a loan to help manage the repayments and reduce surplus interest and fees


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## problemchild (1 Nov 2010)

No the account was all my own, I had no guarantee, The bank approached me with the credit facility, I never requested it.
I am looking at the statement right now, I while the balance was overdrawn €6321.99  I did my food shopping in Dunnes Stores spending €56.23! 

There are loads of over-the-counter transactions like this! 

If they just declined the payment I would not of attempted to spend another penny!


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## truthseeker (1 Nov 2010)

I find it very difficult to believe that you never actually checked your bank account during the time the overdraft was running up.
What about bank statements - did you never look at them?

If you were earning 500-600 a month then you had 7200 at your disposal to spend for a year - but you ran up a debt that was actually more than you earned in a year - how did you not notice that you were spending more than twice your earnings? Did you never actually think 'well last month I bought x,y and z and I paid a bill for a and b, and I ate, went out etc... funny that cos I only earn 500-600 a month'.


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## feltox (1 Nov 2010)

millieforbes said:


> "I requested bank statements from the bank last year. I can see all the transactions."
> 
> Were they all your transactions? How many are we talking about?
> 
> ...


 
Some one in bank must have hit authorised button for increased overdraft limit for laser to be honured they must be money in account and approved overdraft amount

I wonder what happens if laser taken out of unapproved amount- can this be done and are bank liable for these amounts?


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## problemchild (1 Nov 2010)

feltox said:


> I would push for a meeting with the Manager and get him to explain what happened. I would email/phone till I get a meeting as something does not add up.
> 
> 
> Back at that time I was a very high spender as well but had to get permission to double my limit which was set at double by existing overdaft limit.
> ...


 

I never asked for the limit to be increased... think about it.. I had no idea what the balance was! Why would I look for an increase when I presumed I had plenty of money in my account?

I never used ATM machines, There are ZERO ATM transactions on my account.
(I had a part-time pub job that paid me cash, so I never needed to withdraw from the ATM)
All transactions are Over-the-counter payment Via Laser.


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## problemchild (1 Nov 2010)

truthseeker said:


> I find it very difficult to believe that you never actually checked your bank account during the time the overdraft was running up.
> What about bank statements - did you never look at them?
> 
> If you were earning 500-600 a month then you had 7200 at your disposal to spend for a year - but you ran up a debt that was actually more than you earned in a year - how did you not notice that you were spending more than twice your earnings? Did you never actually think 'well last month I bought x,y and z and I paid a bill for a and b, and I ate, went out etc... funny that cos I only earn 500-600 a month'.


 
Sorry You must of read wrong.  I earned €500-600 a week, I was paid monthy.


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## truthseeker (1 Nov 2010)

problemchild said:


> (I had a part-time pub job that paid me cash, so I never needed to withdraw from the ATM)


 
What was putting money INTO the account? A different job?


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## truthseeker (1 Nov 2010)

problemchild said:


> Sorry You must of read wrong. I earned €500-600 a week, I was paid monthy.


 
Sorry - I did misread that. Even so - the basic principle holds, did you never actually think 'oh I seem to be able to buy plenty of stuff - wonder how much is in my account?'. Or even just checking that your job were paying you properly.

Im not having a go btw - I just find it amazing that someone wouldnt keep even a very lazy eye on their bank account and check it from time to time - just out of curiosity!


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## Towger (1 Nov 2010)

truthseeker said:


> If you were earning 500-600 a month


 
It's 500-600 weekly, paid monthly. Say 28K a year, you should have monitored you spending far better and have paid off the 'loan' by now.


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## truthseeker (1 Nov 2010)

I also dont understand how you have so little paid back since 2004 if your earnings were actually 500-600 a week (and not a month as I earlier misread).


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## millieforbes (1 Nov 2010)

problemchild said:


> I never used ATM machines, There are ZERO ATM transactions on my account.
> (I had a part-time pub job that paid me cash, so I never needed to withdraw from the ATM)
> All transactions are Over-the-counter payment Via Laser.


 

this explains it - I think laser transaction are all debited immediately now but in the mid 2000's probably only 1 in 7 was checked. still seems very lucky that you weren't rejected earlier


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## problemchild (1 Nov 2010)

truthseeker said:


> What was putting money INTO the account? A different job?


 
Yes my full-time Job.  The job that paid me by the month.

I left this job during the time I was using this account so for the final 6months no money was going into my account but the bank continued to autherise Direct Debits and any over-the -counter transactions I made.

I know now that It was foolish but at the time I was totally clueless and presumed there must of money in the account if they continued to let me spend.

I was 18- 19 years old, moved out of home, went out with my friends every nite of the week, loved to shop I was honesly stuipd and clueless.
But I really think my bank should of stepped in and stopped honouring these transactions.
I asked the manager on the phone why I wasnt stopped, I got silence as a response.


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## truthseeker (1 Nov 2010)

problemchild said:


> I know now that It was foolish but at the time I was totally clueless and presumed there must of money in the account if they continued to let me spend.


 
This is where Im having a failure to compute. Ok - you thought there was still money there - did you never think 'i wonder how much money is still there because if I dont check it at some point it might run out and I dont want to run out while Im trying to buy something essential - like food'.


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## problemchild (1 Nov 2010)

I totally understand what you all are saying,
WHY did I not wonder where the money was coming from???
I was a teenager.. I hadnt a clue what I was doing or any idea how banking systems worked.  Never told, Never met anyone in the bank.. Just received a letter asking did I want an overdraft.. I siad  "oh yippy.. money" and that was it.. 
I went out enjoyed myself with my friends and bought new clothes!

I left my job to travel in 2005 so I had no wages going into the account.  I paid back €40 from that time on.  
It was 6months after I left my job that I discovered the outstanding balance!


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## problemchild (1 Nov 2010)

truthseeker said:


> This is where Im having a failure to compute. Ok - you thought there was still money there - did you never think 'i wonder how much money is still there because if I dont check it at some point it might run out and I dont want to run out while Im trying to buy something essential - like food'.


 
I used the laser for stupid things like clothes and luxury items so i always knew if it was declined it didnt really matter.  I though Im hardly overdrawn that much I can pay it off quick enough with a part-time job.

I even have a transaction from the passport office.. when I was getting my passport to travel, this was 4months after I left my job.. so they allowed a transaction go through when no money went into the account for 4 months and it was over €6000 overdrawn????  Its completely crazy.


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## truthseeker (1 Nov 2010)

problemchild said:


> I even have a transaction from the passport office.. when I was getting my passport to travel, this was 4months after I left my job.. so they allowed a transaction go through when no money went into the account for 4 months and it was over €6000 overdrawn???? Its completely crazy.


 
Yes - it does seem strange that they wouldnt have contacted you at all to find out why you werent paying them back anything.

I concur with other posters - are you sure all the transactions really are your transactions?

And how come you have paid back so little in the 6 years since then?


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## problemchild (1 Nov 2010)

Yes they are all my transactions sadly,
I have very little paid back because I havent had very much money to pay back.  Its €40 a week for the last year but before this is was only €10 a week I was at college, only worked part-time and had a credit union loan to repay also.


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## Marietta (1 Nov 2010)

You were 18 years old at the time earning a weekly wage of about €500 - €600 a week.  Do you realize you were earning more than some families were and you then go rakeing up an overdraft facility of €8500.

What in God's name did you spend it on??

You have learned a hard lesson and I wouldn't for one minute blame the banks on this occassion.


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## problemchild (1 Nov 2010)

Marietta said:


> You were 18 years old at the time earning a weekly wage of about €500 - €600 a week. Do you realize you were earning more than some families were and you then go rakeing up an overdraft facility of €8500.
> 
> What in God's name did you spend it on??
> 
> You have learned a hard lesson and I wouldn't for one minute blame the banks on this occassion.


 
If I met an 18 year old me right now I would slap me stupid.
I was a brat.. I had no clue of anything.. why in the world would a bank allow a clueless child spend so much money??

I can honeslty say I had no clue or concept of any responsability.
But seriously no financial institution should ever of allowed that to happen.

I work dam hard for my money now, 50 -60 hours a week. I put myself through college and Im a single parent receiving no help from social welfare.
I learned more than you would ever believe for my stupid carry on


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## truthseeker (1 Nov 2010)

OP - what interest rate is on the overdraft? When you were paying back 10 euro a week on it - was that actually making a dent in the capital at all or only the interest?

I think its a harsh lesson learned for you. You made the choice to go to college and only pay back 10 euro a week, prior to that you made the choice to go travelling etc.... You make choices, you have to live with the consequences.

I dont see how you put off college to pay it off, you are paying it back from working the past year, and the year after it happened you travelled for a year, that only leaves 4 years in between and you went to college then - so how did you put off going to college to pay it off?

I also dont see you making much headway with a bank by saying 'I ran up this debt 6 years ago and NOW I want to complain about it' - Id imagine the time for complaining was 6 years ago.


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## truthseeker (1 Nov 2010)

problemchild said:


> why in the world would a bank allow a clueless child spend so much money??


 
Because at 18 you have reached the age of majority and are responsible for your own decisions (financial and otherwise).


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## problemchild (1 Nov 2010)

truthseeker said:


> OP - what interest rate is on the overdraft? When you were paying back 10 euro a week on it - was that actually making a dent in the capital at all or only the interest?
> 
> I think its a harsh lesson learned for you. You made the choice to go to college and only pay back 10 euro a week, prior to that you made the choice to go travelling etc.... You make choices, you have to live with the consequences.
> 
> ...


 
ok when I say travel, I went to america to live with my relations.  I was heart broken over the money I owed and got quite depressed.  I couldnt afford my college place and that made the depression worse. My relations asked me to stay with them to try get myself sorted.
I worked and saved money.  

I paid a lump amount on my return. but it wasnt anywhere close to the balance. I knew I needed to go to college or I would never have a chance to go further in a job or life in general So I made the choice to lower the repayment amount and study.

The bank did tell me in 2008 that I should give up college because they wanted there money paid back and college was a luxury I couldnt afford.

Look, Im guessing from all your advice is that the bank were just nice enough to give me all that extra money and I was stupid enough to spend it.. so its my problem!


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## Marietta (1 Nov 2010)

problemchild said:


> ok when I say travel, I went to america to live with my relations. I was heart broken over the money I owed and got quite depressed. I couldnt afford my college place and that made the depression worse. My relations asked me to stay with them to try get myself sorted.
> I worked and saved money.


 

Well at least you had a conscience about the money you owed and started to make amends, there are many who never gave a damn about what they owed even though they were in a position to pay it back but instead they absconded.


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## truthseeker (1 Nov 2010)

problemchild said:


> Look, Im guessing from all your advice is that the bank were just nice enough to give me all that extra money and I was stupid enough to spend it.. so its my problem!


 
Nice? The bank LOVE people like you - it earns them more money - no, I dont think they were being nice at all - they were doing business!!!

And Id say you were naive rather than stupid - so it happens, try to pay it back and consider it a hard lesson learned - and you know, better to learn that lesson over 8500 euro than learn it over 100000 euro or more - which many people have done and have a life to face of paying back - compared to you - youll have it sorted in the next couple of years.


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## Scotsgirl (1 Nov 2010)

If you owed the bank so much, how did you afford to go travelling?  You also say you have a credit union loan.  What did you need that for?

When I first started working  I didn't get monthly statements so I would often go to bank machines to get a balance slip so I could keep an eye on my account, even if I wasn't taking out any cash.  

I understand you were very young but you were an adult, not a child. Even though the bank may have made a mistake with your overdraft facility, you still spent the money.  It is a big lesson to be learnt.  I'm sure you will be very careful for the rest of your life!


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## papervalue (1 Nov 2010)

I would go meet bank manager for explanantion of how an approved overdraft went from 500 to 8500

The bank should take some blame in this as well

Whatever in account now get overdraft removed and get a term loan on it

Are you sure all your wages at time were lodged if credited each week?


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## Marietta (1 Nov 2010)

papervalue said:


> Whatever in account now get overdraft removed and get a term loan on it


 
A term loan is a very good idea particular now as the OP is struggling and has a child.  That should have been done a long time ago


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## problemchild (1 Nov 2010)

Marietta said:


> papervalue said:
> 
> 
> > Whatever in account now get overdraft removed and get a term loan on it
> ...


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## truthseeker (1 Nov 2010)

Im assuming youre only 28(ish) now? Why will it take you til into your 40s to pay back the 3000 thats left?

How much are you paying back a week/month now? And what kind of interest is going on it now?


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## problemchild (1 Nov 2010)

My credit rating shot due to it.  I have had it checked and I wouldnt be able to get a dress on littlewoods never mind borrow to build a house!


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## truthseeker (1 Nov 2010)

Why is that - was there a period of time where you didnt pay anything back at all?

Look - forget your credit rating, you cant fix that now, but you can move forward and continue to get rid of the debt itself.


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## problemchild (1 Nov 2010)

my credit rating is shot due to it.  I wouldnt get a dress on littlewoods never mind borrow to build a house!


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## problemchild (1 Nov 2010)

truthseeker said:


> Why is that - was there a period of time where you didnt pay anything back at all?
> 
> Look - forget your credit rating, you cant fix that now, but you can move forward and continue to get rid of the debt itself.


 
No I was always paying back the money.. still am but its wasnt enough for them.  They wanted the whole balance cleared in one lump sum and right away.  I have loads of letters from 2006 up untill now asking for the entire balance to be paid. They said they would send people around to take stuff from my house, take me to court and put a judgement on anything of value that I own.

I have been terrified to buy anything of vaule in case they come and take it.

Interest has mounted up as they balance never really clears, I have paid back probably €6000 but due to interest and charges the balance is still over €3000.


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## millieforbes (1 Nov 2010)

problemchild said:


> I used the laser for stupid things like clothes and luxury items so i always knew if it was declined it didnt really matter. I though Im hardly overdrawn that much I can pay it off quick enough with a part-time job.
> 
> I even have a transaction from the passport office.. when I was getting my passport to travel, this was 4months after I left my job.. so they allowed a transaction go through when no money went into the account for 4 months and it was over €6000 overdrawn???? Its completely crazy.


 

and was the laser really never declined?


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## truthseeker (1 Nov 2010)

problemchild said:


> I have loads of letters from 2006 up untill now asking for the entire balance to be paid. They said they would send people around to take stuff from my house, take me to court and put a judgement on anything of value that I own.


 
Just goes to show the scare tactics are mostly empty threats eh?

They know full well that if they take you to court and you can show you kept paying any amount that a judge wont rule against you.

And Id say in these times they have much bigger fish to fry.

Youve gotten some good advice here, the only other thing to add is dont communicate with the bank by phone, do everything by letter so you have a record - write to them and ask them to demonstrate to you how the overdraft facility jumped from 500 to 8500 in one year with no notification to you.


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## pinkyBear (1 Nov 2010)

Hi there as previous posters have said, forget about your Credit Rating, and just pay off what you can, you do have one thing on your side and that is "youth", your very young and a poor ICB report only last 5 years, so it’s not the end of the world.. 

It is my personal opinion the banks were irresponsible, in that they were offering loans of huge amounts,( we were offered 20K, turned it down as we felt we had enough debt with a mortgage!) but the reality is you too share part of that irresponsibility..  I know you’re being responsible now in that you are paying your loan off…
P..


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## problemchild (1 Nov 2010)

ok thanks for the advice but just so u know, I didnt ever take out a loan!!! I never actually asked for any credit.  I was offered an overdraft, I was told it wouldnt cost me anything extra and its handy to have in times like january or if im on a holiday, so I said ok.. no big deal.  Ticked yes.. signed on the line and sent the letter back to the bank.

That was the final communication up until the overdraft balance was €8500...

If I took out a loan I wouldnt be annoyed!  I asked for it.. I pay for it


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## Sol28 (1 Nov 2010)

Is it worth writing to the Financial Regulator and detail the facts. You spent the money - and you owe it back - however - they may be able to help you sort out an intrest free payment plan if you can show that youre account was mishandled by not communicating with you about your increased limit - or block transactions once you hit your agreed limit.


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## millieforbes (1 Nov 2010)

problemchild said:


> ok thanks for the advice but just so u know, I didnt ever take out a loan!!! I never actually asked for any credit. I was offered an overdraft, I was told it wouldnt cost me anything extra and its handy to have in times like january or if im on a holiday, so I said ok.. no big deal. Ticked yes.. signed on the line and sent the letter back to the bank.
> 
> That was the final communication up until the overdraft balance was €8500...
> 
> If I took out a loan I wouldnt be annoyed! I asked for it.. I pay for it


 
I think there may be a subtle difference here if all / most of the transactions were by Laser card. I think that the T&C's of a laser card may put responsibility for not exceeding your limit on you in the first case - in a similar way that you are not acting honourably if you use a cheque card to guarantee a cheque when you know you don't have the funds to back it up.


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## pAnTs (1 Nov 2010)

problemchild said:


> If I met an 18 year old me right now I would slap me stupid.
> I was a brat.. I had no clue of anything.. why in the world would a bank allow a clueless child spend so much money??
> 
> I can honeslty say I had no clue or concept of any responsability.
> ...



listen without giving you a lecture if you are over 18 you are not a clueless child. I can see the argument and stupidity ot the banks but ultimately you have to take responsibility for your actions. I don't think it was the fact that you were 18, when I was 18 I was the same as I am now with money only now I have more of it! I think you buried your head in the sand and spent money recklessly because you were having a good time. Sorry but you need to blame yourself on this one.


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## Mpsox (1 Nov 2010)

There is no point in giving out to the OP, the damage has been done and in fairness, they acknowledge that a lot of this issue is their own fault. Can I ask people as well who seem intent on jumping down the OPs throat to remember that she has made valid efforts to repay the debt over the last number of years and has not tried to shy away from it

However, a simple question has to be asked here, if the bank in question did not persistantly increase the OD limit, would the OP have got themselves into the same mess? No one can say with certainty, but the potential for doing so would have been far less.

We need to remember that this occurred in the middle part of the decade. I certainly recall my bank persistantly increasing my credit card limit without me requesting it during this time. It is only in the last couple of years that this practise of increasing limits on credit cards without the customer requesting it has ceased under (I think) revised guidelines from the Regulator.

I do not know if such practises were also adopted regarding ODs. Therefore, if I was the OP I would 
-get a copy of the bank's formal customer complaints process. 
-raise a complaint with the bank in question asking them why they persistantly allowed transactions to be processed which took her outside of the OD limit. In addition, ask why your OD was consistantly increased without you authorising such increases. There is no point in dealing with your local manager, he either doesn't know or doesn't want to tell you.

I honestly don't know of you have a case against the bank, that will depend on what answers you get back from them. You cannot take it up with the Regualtor until you have followed the bank's complaints process to the end. 

However, it is a valid and interesting debate as to whether or not the action of lenders by extending loan facilities (which is what an OD is) to people who did not request them and who did not have much financial knowledge is in fact a breech of a bank's duty of care to their customers.


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## papervalue (1 Nov 2010)

Is it possible to do a freedom of information on this account for the period once overdraft approved to present

Put all info you have in file and get some one who might do for free from board or mabs to take a look at all information to hand and to ascertain when overdraft was increased etc

Be mainly due dilgence of what happened, you be amazed what one person might miss and another person might see straight off

I personally never seem overdrafts be increased without some prior approval as they are watched more than credit card limits

The deal that should be done is - all charges/ interest above limit be 
eliminated(if they cant prove she asked for increase) and all purchases be paid for.

The bank paperwork in regard to guarantees from experience is weak in some cases i have seem. If paperwork same on overdraft she can at least have a go at bank


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## pAnTs (1 Nov 2010)

Mpsox said:


> However, a simple question has to be asked here, if the bank in question did not persistantly increase the OD limit, would the OP have got themselves into the same mess? No one can say with certainty, but the potential for doing so would have been far less. _- Fair Point!_
> 
> I honestly don't know of you have a case against the bank, that will depend on what answers you get back from them. You cannot take it up with the Regualtor until you have followed the bank's complaints process to the end.



I wouldn't bother with a case against the bank, the OP will still have to repay the loan and after all it's a bit nuts to not check your bank account for a year when you are spending money like there's no tomorrow but no money is going into your account. If I was the OP I wouldn't bother myself with any more irritation. I would accept I f*$£ed up, I'd make sure Id learnt my lesson and I would move on getting the loan paid off as quickly as I could.


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## SarahMc (3 Nov 2010)

I don't think it is that unusual for 18 year olds to be clueless about money.  Of course they are at the age of majority and are responsbile for their own actions, and it is also parent's responsibility to teach their children basic money management.

However it is a serious flaw that this basic life skill is not taught in schools.  It is akin to SPHE not being taught in senior cycle.  There is too much emphasis on academic achievement at the expense of life skills.


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## Tomorrow (3 Nov 2010)

Although I totally agree that the OP was an adult and should of been more responsible for their own money, and should pay the money back, what is the point of having an overdraft limit if it is going to be ignored by the bank?

(Of course, this is assuming that the OP didnt somehow agree to the increase in overdraft limit without their knowledge.)

I currently have a client who has an agreed overdraft of €2,000, their accounts now stands at €4,500 OD. Nothing is bounced and there has been no correspondence from the bank. This is a grown woman running a business, she just never checked her account - assuming that everything was ok.

Now we all know that we should be keeping an eye on our own money but again, why does the bank put a limit on our overdrafts if they are (in some cases)  just ignored??? 

And if the overdraft limit is breached to such an extent as in the case of the OP, would there not be a case for getting even an interest reduction or an interest freeze when making the repayments?


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## Ailesbury (3 Nov 2010)

Depending on the institution, you might be able to negotiate a 'full and final settlement', this may however have implications for your credit rating and youre ability to borrow in the future. The settlement might consider this ie settle and do a deal on the basis that your credit rating is not changed, this is less likely but might be worth a try, call the personal collections and recoveries department as opposed to the local branch and you are more likely to deal with someone who can make a decision.


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## canicemcavoy (5 Nov 2010)

problemchild said:


> In my own teenage blinkered foolishness I believed that my wage was clearing my balance and I was still under my €500 overdraft limit.


 
Er, did you read your bank statements?


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## kaplan (5 Nov 2010)

This is quite a typical case of how we mentally account for how much we have to spend on different categories of things we buy. There are some very interesting studies on how people use plastic cards, particularly credit cards. It seems that our mental accounting for money depends on the pain associated with the purchase we make. When we have to use cash or write a cheque we have a better idea of how much we have to spend. But when we use credit cards because of the time difference between carrying out the transaction and actually paying for it – realising the pain- we are less capable of tracking how much we have to spend. The same is probably true of laser cards linked to overdrafts. Internet purchases using cards are probably the most acute examples of mental accounting failings. Thing is banks know how this works and of course are keen to encourage widespread use of plastic cards. Is this reckless – probably not - but it does exploit human behaviour.


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