Bank has taken my UC payment!

[Fedupandpoor]

I'm completely fucked. I bank with Tesco and have had a £1000 overdraft for about a year. I'm always overdrawn and am working to crawl out of it. UC paid my monthly payment in today, it was a slightly higher one if £1020 so took me out of overdraft. Within 1 hour fucking Tesco cancelled my overdraft so I have £20. £20 fucking pounds for the month. I have 2 dc and have no food, no rent money no pack lunch, no gas electric, fuck! Do I have any protection from this at all? I'm on the bus home now and will call them as soon as I get home I'm shy to do it on the bus, will they put it back? Absolute fuckers!

This is awful - I had no idea this could happen. I always assumed that because banks make money out of overdrafts (mine charges £6 a month plus interest) they would have no reason to do this. I use mine every month.

OK, thank you that's given me some hope

Is benefits you only income? I dont think they can do it if it is especially as universal credit pays your rent

Oh just to add for my friend who managed to get them to reduce the overdraft slowly, he had to put a minimum of I think £1200 in every month otherwise they'd pull it immediately, so you don't have to continue to use it as your primary account if they did agree to extending the overdraft.

Honestly try not to panic. It has happened to me a few times and they have always been understanding and set up an affordable repayment amount.

I've now transferred mine to a 0% credit card to pay off monthly, as most overdraft interest rates are going up to about 40% in March. Is this an option?

I’ve just had this with RBS OP. I’m going through a really tough time financially with debt, lost my tax credits and everything spiralled out of control. RBS let me withdraw my full wages inside a branch. Phone them ASAP and see what they can do.

*do have to continue to use it as your primary current account that should say.

Banks have the right to off set funds to repay a debt but not if the funds are from benefits and leaving you with nothing. So you should challenge it.

Eligibility checker for money transfer credit card here

creditcards.moneysavingexpert.com/?money-transfers&_ga=2.155959931.1345860343.1499182016-329540102.1479896452?p=0&gclid=Cj0KCQiAtOjyBRC0ARIsAIpJyGP4e4fq-oSOK1uo8fSobtLe_1ceujieLEPZCD9sEE7Rjehg3Hm9ymsaAifLEALw_wcB

They'll transfer the money into your current account within a few days if your eligible. You can then pay it off gradually for hopefully less interest than the overdraft

This happened to me last month. I contacted my bank, they agreed to half being restored and £100 per month for the next 6 months.

Im in Scotland so no idea if this is different in other parts of the UK but I contacted my council and applied for a crisis grant. I was given £500 for gas, electric and childrens supplies, £300 towards my rent and a refferal to the food bank.

They were lovely, they really helped and as it was a grant I don't have to pay it back.

There is also a loan that can be applied for if you don't meet the criteria for a grant.

I really hope you manage to sort this, it's a shit situation to be in

Call your energy suppliers, apply for a hardship fund, check with the food bank, contact UC and keep all communication with them. Your suppliers might be able to offer a one off payment to keep you on for now, hardships the same and a food banks better than nothing.. at very least it gives you evidence to send to Tesco to show this really is a hardship, incase they want to act dumb, and then try to offer a monthly repayment of something if they reinstate the overdraft.

But I’d also consider moving your entire balance, when you get something sorted, to another account with no overdraft ability (rbs basic account type) and transfer back over the repayments to tesco so it can’t happen again.

Had it done with a chunk out of a wage, had to work like a bloody demon to get a bigger pay to catch me back up. Fortunately was not a large overdraft but still enough to fuck your month.

Unfortunately overdrafts are repayable upon demand so yes they can cancel it at any time.

Oh God I'm such a twat ,

I called them and the overdraft is still there. Its just they have changed the way they display your balance and don't show the £1000 overdraft as available. I've never seen the account out of overdraft since the change happened so didn't know that I would just see £20 as available. I'm so sorry for the panicked, pointless post

Ah yes that is what they do now. They arent allowed to show them in your available balance any more

Thank you so so much for all the wonderful advice and words of encouragement. I'm sorry I wasted your time

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www.google.com/amp/s/www.moneysavingexpert.com/news/2019/11/overdraft-rules-available-balance/amp/

I’m so glad you got it sorted, what a nightmare for you!

I worked I a bank for 24 years and yes an overdraft is not guaranteed and can be withdrawn. Are you currently working as well as receiving UC or is this your only source of income? Was the overdraft an authorised one or an unauthorised one?
If you make an appointment and go into the bank they will arrange a repayment plan for your overdraft providing you have not been constantly over an agreed limit. They will usually look at what is affordable taking into account outgoings.
The bank should not leave you in a position of having no funds. Be assertive and not aggressive and you’ll get further.

Oh what good news!

She couldn't go into a branch as there are none. Her overdraft is still there but not displayed in the available balance as it used to be

Izzywizzygood People's circumstances change... You don't know why the OP is on UC so your silly comment isn't helpful.

Maybe this might be a good wake up call to sort it out in case you lose it? Chuck everything you can at getting out if it?

it must have been a real shock.

Yes, no actual Tesco Bank branches, as far as I know?

It's ok, the money is there but this has given me such a shock and reminded me that it can all go bad so quickly when living on borrowed money. For now it's my only source of income, ds starts full time nursery in April so back to work I go. I got hit with the minimum income floor from UC so my payment is already £500 less. His nursery didn't have any spaces for him to start in January when the deduction kicked in. Now I just have to find one of those school hours jobs, in one of the poorest parts of the southwest

Sorry for the pity party, debt and poverty is shit. So fucking shit and I want out of it. I will get out, it's just a slow process and I seem to get kicked in the face for every tiny bit of progress I make.