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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To call 'bullshit' on not being eligible for overdraft as a SAHM

122 replies

ShouldiWork · 02/02/2015 13:24

Apparently unless I have a wage of at least £500 per month they can't process my overdraft application further. Despite there not being a month in the last 20 years when that account has turned over less that 1.5K per month - whether through employment - or through being the 'housekeeping' account. And despite me having a 4K credit card with them that I'd happily give up to reduce my overall credit line with them.

It's a pain - because I write so many cheques for DC activities etc - and they can be cashed at unpredictable times, which is hard to keep track of.

I feel like I'm being forced into becoming a +1 on DHs current account in order to be able to benefit from normal banking functions like an overdraft buffer - and for various reasons this annoys me.

Signed:

The economically invisible woman

OP posts:
Theoretician · 02/02/2015 13:31

I shifted accounts to Santander a couple of months ago, they wouldn't open an account unless you had £700 a month going into it. Apparently if your only income were a million pounds a quarter from dividends you would be to much of a peasant to do business with.

(I regard my investment income as my main source of income and take it quarterly, though it's not a million pounds a quarter. Luckily I have £700 a month from elsewhere, so this wasn't an issue.)

LindyHemming · 02/02/2015 13:32

This reply has been deleted

Message withdrawn at poster's request.

flora717 · 02/02/2015 13:33

Go elsewhere.

TwoLittleTerrors · 02/02/2015 13:34

Why not just use a joint account? I don't see the issues.

Original poster
ShouldiWork · 02/02/2015 13:37

That's where we're headed - more specifically installing me as a +1 on DHs account - but I feel somehow economically diminished that despite handing a £££££ budget - I don't qualify for an overdraft.

DH actually pays in £1k every month for housekeeping (he pays bills direct) - and I get £250 child benefit - but apparently neither of those count - since I 'can't rely on them continuing'. So apparently my DH and the benefits office are less reliable than a zero-hours contract pulling pints at the local pub.

OP posts:
Theoretician · 02/02/2015 13:38

I never use an overdraft, in the past I just work out what my largest monthly expenditure is likely to be and aimed to keep that amount in the account all the year round. (I set up alerts using online banking and top-up whenever it falls below that level.)

Santander current account actually pays higher interest than any savings account so in future I might keep a lot higher balance in the account.

Theoretician · 02/02/2015 13:41

DH actually pays in £1k every month for housekeeping

It was exactly that (standing order from spouse) that I used to fulfil income requirement. I didn't say where the income was from, and they didn't ask. Maybe they are nosier when the requirement is for an overdraft though.

Original poster
ShouldiWork · 02/02/2015 13:42

terrors

Apparently has to be an account with a salary paying into it by BACS - so a 'joint' account would be DHs account with an extra card for me.

I like my account - I've had it for over 25 years - and realistically this will be the end of it - since all the housekeeping would go through the 'robust' account.

OP posts:
Littlef00t · 02/02/2015 13:50

Could you keep a float so you don't need an overdraft?

OnceUponATimeAgain · 02/02/2015 13:57

move banks - dont stay where you dont get the service you want

Original poster
ShouldiWork · 02/02/2015 13:59

That's what I've done up to now - but it's inconvenient for a 'just in case' - and it's a principle of the thing, really. That after decades of healthy finances, my bank still consider me a bad risk due to SAHM status.

OP posts:
TwoLittleTerrors · 02/02/2015 14:23

I would say the same with housong benefit. MIL couldnt rent a flat without a guarantor. You would think govt benefits are quite reliable.

LoisWilkersonsLastNerve · 02/02/2015 14:27

I think its down to you being seen as a person separate from your husband iyswim. When I was a sahm I had the same problem. Benefits and so's don't count as income.

TheGirlFromIpanema · 02/02/2015 14:30

I wouldn't lend money to a person with no income of their own tbh.
I can understand why they have rules like this.

Shame your bank is only enforcing it on the o/d you actually need (and does not make them much in profit) and not the cc you probably don't need.

Now that makes no sense whatsoever!

Original poster
ShouldiWork · 02/02/2015 15:08

Well, exactly! Why is it OK to lend me 4k to spend online shopping shoes - but not OK to allow a buffer on my account for petty cheques....

But I clearly do have income. They have all my incomings and outgoings listed on the screen in front of them - and the £500 I asked for represented only a small fraction of typical turnover - and is totally commensurate with my reason for asking one (i.e. if I miscalculate short term cash flow by 10-15% so I don't go in the red)

And if they give a working person an overdraft - there is no clause about 'let us know if you lose your job'.

I can't help but see it as misogyny.

OP posts:
DoJo · 02/02/2015 15:29

Each bank has their own criteria for authorising overdrafts and each account has its own terms and conditions, so I don't think there is a universal refusal to offer them to SAHMs. Given what your bank has told you, it sounds like they would refuse a SAHD as well.

You are the one trying to change the terms of your account, so I suppose the onus is on you to find one which meets your needs rather than hoping that the terms for this specific account with this specific bank can be altered to accommodate you.

Original poster
ShouldiWork · 02/02/2015 15:54

That's a bit like saying you pick your spouse - and you should have picked one who chewed with their mouth closed - rather than nag the DH you have. Smile

OP posts:
Butterpuff · 02/02/2015 16:01

I understand their criteria.

I'd also rather have a joint account than one that had 'housekeeping' paid into it as well. But that may be just me.

UsuallyLurking1 · 02/02/2015 16:03

Don't think its you that's the issue OP, just the banking goalposts have moved in recent years.

I did wonder what the issue was - use the credit card instead I thought. However my DC are under four and we aren't into the activities stage just yet but I can see that most of them won't be set up to take credit cards

So, if they won't accept the consistent level of income that accounts had over 20 years, everyone else is right, leave them!

DoJo · 02/02/2015 16:03

Well, you should! I always assume that posters are more attached to their spouses than their banks, but mine eats with his mouth closed, so you might be the exception to the rule...Grin

But seriously - there are loads of accounts out there, so if your current one doesn't meet your needs then find one which does and let your current bank know why. It's annoying, but MUCH moreso for you than them, and I doubt that they will actually do anything to change their rules no matter how much sense it would seem to make. Voting with your feet will be much more effective than trying to get past the 'computer says no' approach to banking that brings up these issues in the first place.

morethanpotatoprints · 02/02/2015 16:07

I would go elsewhere tbh.

Saying that my overdraft is with Santander but between housekeeping money from dh, tax credits and cb it does total the requirement per month.

I have never heard of this before it is discrimination.
Fair enough if they can't see the money coming back and you have no regular money going in, but this isn't the case.

partialderivative · 02/02/2015 16:10

I despise all banks. And not because of the bonus culture, but because they are incompetent arseholes.

People are no longer recruited because they may have some sort of acumen with regards finance and numeracy, but because they have the right smile and can push the banks products.

I recently dealt with a charming young man who did not have a clue how to work out compound interest over a 5 year period. As a maths teacher I bit my tongue (I teach it to 15 year olds, but it certainly did not instil any trust in me for their knowledge of anything else

I am really sorry to all those bank folk out there who offer fantastic customer service, common sense and real empathy to the customers issues. It is such a relief to find you

(In my experience this has so often been the middle aged women who work there)

Original poster
ShouldiWork · 02/02/2015 16:12

potatoprints none of those count as income according to HSBC.

OP posts:
SoonToBeSix · 02/02/2015 16:14

My only income is dla and tax credits , nationwide had no issue with giving me an overdraft.
Op I am sure your bank would treat a sahd exactly the same way.

FragileBrittleStar · 02/02/2015 16:17

I wouldn't lend you money without any secure income (and would say same about credit card)
Banks are damned either way but lending to people who can't repay has been condemned as poor business/balmed for financial crisis etc - how do they know that you will carry on getting the income? and I know that they don't know that an employee will stay employed but it is a bit more contractual

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