Can BOI just cancel a business overdraft & close a business current a/c?

Business current account has been under pressure since approx Oct-Nov 2010- lower level of turnover than normal as money difficult to collect and some direct debits were being returned.

Account had operated perfectly since 1999 but 2010 was bad year. Huge problem with bad debts, and massive dive in turnover. To be fair expenses were also reduced to very low level, but there still would have been 3-4 direct debits being returned every month. No cheque has been written on the account since Nov 2010 as we were struggling to get enough money in to honour d/d's that we couldn't write cheques. Our overdraft was only ever €2,000 even though up to 2010 our turnover would have been €250,000. The direct debits returned would have amounted to less than €1,500 p/m (pension/vhi/life cover) that sort of stuff so it is not as if they were huge and indeed most have now been cancelled as we simply cannot afford to keep them paid.

Recieved a letter today from BOI cancelling the paltry €2k over draft, and outlining that the account will be closed in 21 days- can they do this?

We actually have a term loan of approx €15k with them so how do they expect us to make the repayments on this if we have no current account? I am sure that no other institution will want to see us coming if we have been "evicted" from BOI?

Has anyone had a similar experience to this? What are my rights as a consumer? What would anyone advise us to do?

Check the termination clause in your T & C's

Overdrafts are generally given only for one year so they expire automatically.
The bank is not under any obligation to renew them.

If a bank account requires too much administration, the bank has a right to terminate the account. 3 or 4 direct debits being returned every month would be a big headache for the bank.

If a bank account has been well maintained over the years, and there is a temporary problem, the bank should be a bit more flexible. You should arrange to meet the manager and try to sort it out. If you can clear the overdraft and keep the account in the black without any bounced direct debits, they may well agree to retain the account.

Brendan

Unfortunately your story is becoming all too common. Try to meet with the bank manager, even if it's just to get an extra month or two and then open an account with another bank.

As you're discovering being a past good customer counts for naught.

Out of interest if the poster was to go to AIB or PTSB would they take his business?

Bank of Ireland are sending out 21 day notices like confetti these days. I got one for a dormant account which had money in it about a year back. Explain that one?

They won't close the account with a negative balance on it.