My bank that holds my current account, NatWest kindly (!) took on my Cahoot flexible loan, with that loan I included my small but always in use overdraft. Two things to note here. I've been with this bank since 1985, and only broken my overdraft limit once some three years ago, rest of the time I have lived well within it or precariously on the edge within pennies ! So decided to get rid of the facility because if it's there I'll use it.
Now bearing in mind I have had a loan with them before and at that time they suggested I keep an overdraft of £100 in play as there's no charge. Within 6 months of that loan decision they upped my overdraft to £600, without me asking, of course I had my financial beer goggles on and used it unwisely.
So returning to this overdraft and loan I checked my online banking this week and my overdraft facility of £1000 is still there. I know what they are doing, they've got me on an ever repeating loop. Give her a loan to pay off the Cahoot debacle and overdraft, forget to remove the overdraft, and in a couple of years time play the game again ! I'm their guaranteed income !
Not this time. I'm going to live on the right side of the account.
Thursday, 14 February 2008
Looping
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2 comments:
Jo,
I agree - it's a trap that so easily catches the unwary. You'd think with the credit crunch, they'd rein in the risk and stop this sort of practice?
But no, banks will continue to do this sort of stuff, and pull the rug unexpectedly from people when their shareholders revolt or some idiot loses them a billion or so unexpectedly.
yes, I love the way to promote this kind of stuff as if there doing US a favour!
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