# Overdraft expiring? No mention on original contract



## Crea (27 Sep 2013)

Hi,
We just got a letter from the bank that our overdraft is due to expire. We have had this OD for 8 years and have the original contract. The contract has no expiry date on it. Any idea what they are up to and what we should expect from them?


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## itsallwrong (27 Sep 2013)

Standard procedure for a credit facility.
If you want to keep the OD, you should reply in writing.
Otherwise it will lapse and you might get caught out one day
from not having the OD in place.

An overdraft is a risk to the bank and a credit facility.


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## Crea (27 Sep 2013)

Thanks. 
It's the first time in 8 years that they have contacted us about this.
I guess i'm just being a bit mis-trusting of them


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## Macstuff (28 Sep 2013)

I had a 6k OD with BOI since approx. 2006. I used it regularly over that period, but cleared it in June. I was contacted shortly afterwards to ask me to cancel/reduce it. I decided to cancel it as my current circumstances mean that I don't need it. 
As stated above, banks seem to be trying to tidy up their overdrafts.


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## newdawn (29 Sep 2013)

This is a bit scary to my ears. I am operating on an AIB  3,000 OD and need it. if they ever contacted to cancel have I a leg to stand on?  Is it likely they'd take it back when its obvious the customer cant operate without it?


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## dewdrop (29 Sep 2013)

I was always under the impression that overdrafts were payable on demand or as in the past "at the pleasure of the bank" .


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## wanderer (29 Sep 2013)

Similar situation here. It seems they are doing their best to cancel overdraft facilities.

I had an overdraft with AIB for over 8 years and it was automatically  renewed each year. Until this year when i was informed that it would be  reviewed and that i had to send in copies of this that and whatever, and  that i had to go into the branch as well.

This was just nonsense  to me as AIB seems to be doing all they can to keep you out of their  branches, such as closing them down and no longer offering statement  printouts in branch.

I argued that this would be an inconvenience  to me to take time off work and to travel all the way to my original  branch for a 15minute conversation and could i not even do it at another  branch close to me. Was told no.

I argued that they reviewed it last year and there was no need for me to go in at that time.

They agreed to me emailing in copies of payslip etc and to renew for 6 months and review then.

All this even though my take home annual salary was 25-30 times the overdraft limit.

So  imagine my surprise two weeks ago when my card was declined. I log onto  the online portal and the available balance shows 0 instead of the  overdraft amount.
No call, no letter in the post, just cancelled six months later.

To  be fair, i don't really need it any longer but was good for emergencies  on a second account and also to have my wife put her expenditure onto every month which i  would then clear off at the end of the month.

The above combined  with the 2500 euro minimum balance requirement to avoid fees and some of  the other annoying changes seriously tempts me to start considering a move to another bank. 
13 years is a long time to be loyal to a faceless corporation.


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## Bronte (30 Sep 2013)

wanderer said:


> , i don't really need it any longer but was good for emergencies on a second account and also to have my wife put her expenditure onto every month which i would then clear off at the end of the month.


 
Would it not be a better idea to give the money upfront, rather than relying on an overdraft that attracts large fees?


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## Billo (30 Sep 2013)

Should people not try to live within their own means ?
An overdraft  should not be a permanent option.


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## wanderer (30 Sep 2013)

Sure, of course. Mentioned in almost every thread about overdrafts, credit cards etc. Lets move on.


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## Crea (30 Sep 2013)

Billo - that would be wonderful in LaLa land where no self employed person loses their job and has to live while they are looking for a new job despite the fact that they aren't entitled to any state benifits and if they are it takes over 6 months to get them. I'd love to live in your fantasy world


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## Crea (30 Sep 2013)

Now for my proper reply:
Spoke to the bank. The are looking at the OD cause we have CC debt too (shock horror!). They have advised that renewing the OD is contingent on us setting up a direct debit for the CC. As we can't clear the OD or the CC we are left with no option really but to set up the direct debit. I really feel like we have a gun to our heads. 
Is this legal?


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## Billo (30 Sep 2013)

Crea said:


> Billo - that would be wonderful in LaLa land where no self employed person loses their job and has to live while they are looking for a new job despite the fact that they aren't entitled to any state benifits and if they are it takes over 6 months to get them. I'd love to live in your fantasy world



Crea,
It's no fantasy world orLaLa world,believe me. It's just common sense.
If more people used common sense over the years then the country would not be in the mess it is in now. Stick to your proper replies.


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## Crea (30 Sep 2013)

Billo said:


> Crea,
> It's no fantasy world orLaLa world,believe me. It's just common sense.
> If more people used common sense over the years then the country would not be in the mess it is in now. *Stick to your proper replies*.


 
I could say the same to you. I asked for advice not a statement of the bloody obvious.


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## Bronte (1 Oct 2013)

Crea said:


> I could say the same to you. I asked for advice not a statement of the bloody obvious.


 
I see now why you spoke so defensively on the other thread. Billo is right to point out the obvious as you put it, it might not apply to you but it may apply to other people. 

I'm sorry for your predicament.

As dewdrop pointed out overdrafts can be withdrawn by the bank.  It's up to their discretion.  They are now using that discretion to tidy up the messes they allowed people to get into so easily.  So people with OD's would be well advised to start sorting their finances out before the facility is withdrawn.


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## Crea (2 Oct 2013)

Thanks Bronte.
They just haven't given us enough time to tidy this up. We've been given 1 month. The bank is being high handed on this. We have be focusing on getting out of the CC debt and hadn't been paying attention to the OD. Getting out of debt is a slow process - I wish the bank could realise this.

Everyone knows that we shouldn't get into debt - but it does happen, sometimes caused by difficult situations. Pointing out the obvious shows a lack of sensitivity and does nothing to advise the poster, which is what this site is supposed to be about.


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## Bronte (3 Oct 2013)

Crea said:


> They just haven't given us enough time to tidy this up. We've been given 1 month. The bank is being high handed on this.


 
I recommend you go to your bank manager, a face to face is better than computer says no. Explain you need x amount of months, put a logical case and see if that works.

You didn't put the facts of your circumstances in your OP. Hence some of our responses.

Edit: Just realised, the bank will give you a continuation of the OD, if you set up a DD for the credit card.  Did they specify how much you have to repay?  I presume they have gone though all your finances.  Have they suggested a figure that you think you cannot repay.  Any chance of a move to a zero interest rate credit card?


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