Unauthorised overdraft due to former employer not paying up

[efm]

OK - You need to prioritise your problems.

1. You are overdrawn, on an unauthorised overdraft - you need to sort out a temporary overdraft asap - don't worry about how you feel talking to the bank - banks do this kind of thing everyday and are more than happy to charge you for the service. Ideally you want an overdraft to the amount of your expected wages due from your previous job. But whatever the amount, you need to sort out having enough money between now and January. If it is too late today then call them tomorrow and get it sorted - go to your branch in person if possible

2. You have an issue of late payment from your previous employer - you should write to them immediately stating that you expect payment as contracted asap and that you expect any costs and / or fees incurred by you as a result of their non payment to be refunded upon production of reciepts.

Don't get upset or lose the plot with anyone as this won't help your case with the bank or your employer - be calm but assertive, have all your facts straight and get names, agreed deadlines and senior contact details from everyone you talk to. If you do that it will work out ok.

 

[bond-007]

I found it strange that they refused me an overdraft one day and the next week they allow me to run an unauthourised overdraft. Don't make sense.

 

[efm]

I found it strange that they refused me an overdraft one day and the next week they allow you to run an unauthourised overdraft. Don't make sense.

Do you know WorriedSick? Or are you talking about yourself only in the post above?

Either way different credit rating criteria are used in authorised overdraft vs unauthorised overdraft.

 

[bond-007]

Post edited

Either way different credit rating criteria are used in authorised overdraft vs unauthorised overdraft.

The cynical would think they do it deliberately to maximise their fees.

 

[WORRIEDSICK]

thanks a millopn efm, I have two messages again this afternoon with the back would it be a good idea to e-mail them??? I dont know Bond by the way also I have never have an overdraft, and dont have loans with the bank just my mortgage and a credit union loan of €8000 but have savings off about €7000 in the credit union so there is no fear of this..

 

[efm]

thanks a millopn efm, I have two messages again this afternoon with the back would it be a good idea to e-mail them???

Well it's unlikely that you will get any answers at this hour of the evening so wait until tomorrow. Did you get the name of the person you were dealing with before? If so try and talk to her again in the morning - If you can't or she doesn't call you back by lunchtime call again and ask for someone else!

Is there any way you can go to the branch in person? These things are always sorted out faster if you arrive at the banks doorstep.

Also, make sure you keep all fees and charges levied on your account as a result of going overdrawn.

BTW get thee to the Money Makeover forum where AAM can educate you on the madness of having savings AND a loan with a credit union!

 

[WORRIEDSICK]

I figure with the credit union at least the money is still there will have about 15 months left on this loan.. am i wrong thanks again for all your help.
Ya I got her name and rang and asked for her e-mail could i mail and just say out of curtosey could she come back to me??? is that too rude???

 

[efm]

The cynical would think they do it deliberately to maximise their fees.

The cynical are far too cynical for their own good!

AFAIK banks don't have sales targets for personal account fees - ie there is nobody saying "this week I want to see 15 unauthorised overdraft charges applied to our customers".

The lending criteria for an overdraft is the same as a loan - while the criteria on an unauthorised overdraft is much simpler and is based on an assumption that it will be repaid quickly (ie within 3 or 4 weeks).

Caveat - all the above is based on my limited experience and could be well outdated at this stage and I could be talking through my behind!

 

[efm]

I figure with the credit union at least the money is still there will have about 15 months left on this loan.. am i wrong thanks again for all your help.
Ya I got her name and rang and asked for her e-mail could i mail and just say out of curtosey could she come back to me??? is that too rude???

No that would be fine - there is no harm in keeping yourself foremost in her mind!

It might be worthwhile asking a seperate question about the credit union loan and your savings (ie split the thread) as I don't want to go off topic; but if the interest rate on your loan in higher than the deposit rate for your savings then you are losing money. Take a look at some of the other questions and comments on AAM about having savings while paying off loans - they will give you some more information.