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

[ShouldiWork]

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

It's not misogyny. An overdraft is credit. You have no income of your own, therefore you are not a good credit risk. Simple as that, no hidden discrimination.

Sounds v odd given the income into the account. With looking elsewhere.

I never use cheques as you day they can be cashed randomly pay cash or ask for bank details to pay into account directly.

vivien it has to be salary. I show 1k per month standing order from DH and $265 child benefit.

fragile nothing short of the grave will get DH out of the contractual responsibility to support the household where his DC live (and the grave attracts generous life insurance!). My employment is at best 1 month notice. Whether DH chooses to support us by paying into that account is a moot point - my employer could equally decide to pay me in cash or tinned soup.

I think this is because they want to make sure it is your "main" current account rather than thinking that you are a risk. Most people only have one salary so by specifying that it is the account that salary is paid into they are encouraging you to use the account as your main account. What they don't want is for you to mainly use another bank but keep/open the account with them if the balance is mainly going to be low as they can't make money from that. It's not really anything to do with being a SAHM

All those providers ask for cheques (well, the trips would take cash - but I didn't have exact change).

Last term I paid pre-school by transfer - but I had to ask specially - & the details weren't saved - so it was quicker to write the cheque.

tarka - it's the account that child benefit is paid in to. I think that is salary equivalent for the purpose of marking a primary account (same as JSA/pension/DLA).

Shouldi

This is the same for us, we only have one dependant child now and there are enough cheques to write for her. It used to be mad when the other two were youngsters too.
Sometimes people/organisations will only take cheques.
Even if you remind them its the 21st century.

OP, have you tried Co - op they were great with dh business, not sure what they are like for current accounts.
I think the employees have slightly more autonomy and not just regurgitate what computer says.
In fairness, few bank employees are allowed to make decisions, these skills have to be left at the door these days.

But it's not really your household primary account is it? Your main income goes into another account and then your dh transfers some across. It's not the account your rent/mortgage comes out of, or your bills from what you've said upthread.

YANBU, it's a bag of crap and as you point out, totally outdated since employment is so precarious now anyway.

Re the inconsistency with credit card - they operate fundamentally differently. Your overdraft is cash out of your bank's pocket. The credit card system is a good bit more complicated - multiple players in the network, who bear some of the risk themselves, your bank earns money from extending you a credit line (from those who benefit from the transaction e.g. network provider, merchants), and the risk your bank does bear it can manage and profit from through securitisation.

So credit card credit lines are typically extended much more readily than overdrafts.

Banks are businesses after all and are not there to make it easy on anyone, they never had been.

We were refused an overdraft many years ago. We had dh income which was small and wanted a £500 overdraft to buy a car, that's how long ago it was.

No go with the overdraft but would have been happy to sign us up for a loan of about £5k, even on a low income.
Needless to say we borrowed of friends and family and they lost the business.

Brantano said I couldn't have a store card if I put SAHM down on the form. So they put student down and that was fine.

You are high risk, effectively unemployed with high outgoings and noway to pay that money back if dh stops his contribution.

Would you lend to an unemployed single parent with maintenance only? That's how the bank see it.

Not much advice to offer except move banks but...what I find weird is that I have had (and barely use) an automatic £1K overdraft limit on my account. It dates from my working days. DH pays in a couple of hundred a month to keep it ticking over as I am not going through the bugger of opening another account as a SAHM and I use it for the dividends DH pays each year as joint owner of the family business. I broke into the overdraft at Christmas for a few days so it is still live even though nowhere near £500 goes through that account each month, although with the yearly dividend it would be a lot more if that was divided by the 12 months. But that dividend goes in, sits for a couple of days then I put it in a savings account so it just moves in and out again.

So how is it that I am good for the £1K credit because I already have an account but wouldn't be if I applied for a new overdraft? I suppose if I could answer that I'd know the way the banks work!

holidays you've got it in a nutshell.

Caring responsibilities are classed as 'effectively unemployed'. This is mysogyny whether or not it also catches a small number of men.

holiday

Somebody upthread maybe OP? said they give overdrafts to people on zero hours contract, I would say this is much riskier.
My ds1 has one of these on top of two other jobs he does.
Some weeks/fortnight can go past without him being called in.
How the hell would he pay an overdraft off if this was his only income.
Its ludicrous and doesn't treat people on an individual basis.
It really is a case of computer says no.

Why wouldn't you lend to a single parent paid maintenance? Proportional to the amount of that maintenance - but otherwise I don't follow the issue.

So to recap: my bank that knows I am a graduate, and my bank that has tracked me through ten years of post degree continuous employment up to six months ago (including lending me and DH half a million pounds for our house) jumps to the conclusion that I must be on the bones of my arse if my current income is via my spouse.

Because my spouse's commitment to supporting his children's carer is considered optional. Although it wouldn't be if I was their nanny, of course, when the exact same money would be totally satisfactory.

And by dint of my choice to stay at home with DC it is presumed that I would have no capacity to earn money if I did need to.

Carer = empty space.

I am very surprised by that. Hsbc gave me a 4500 overdraft when I didn't have any income only tax credits. I applied on internet banking and they have never said no. We always joke they will lend anyone, anything.

I once was refused for a loan for similar reasons, although I was actually employed.

What had happened was in the early stages of my relationship, my partner paid all money to me and all the bills and rent came out of my account. Despite them having 2 years of records showing a payment coming from my partner each month it could not be counted as income. The computer decided I was spending a far higher percentage of my salary on bills and rent than was sensible and refused the loan.

It shouldn't have to be a primary account if money is being paid in though.
That has nothing to do with it or shouldn't.
You could have 3 current accounts, a savings account, ISA, joint account as well.
As long as the funds are regular and it shows ability to pay back, there shouldn't be a problem.

You could be earning £100K per annum and be up to your neck in debt and not have the ability to pay off an overdraft.