Overdraft breach

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dan116

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Joined: Tue Oct 27, 2020 12:16 pm

Post by dan116 » Tue Oct 27, 2020 12:16 pm
Hi,

I have had a breach letter regarding my overdraft, I have used it, yes. But it's £500 not more.

My ip have said that I need to change banks and organise with current bank a payment plan on overdraft.

I was under the impression that 500 was allowed.

If I put the over draft down to 450 and then send proof will this remedy the breach? Or is my only option to do what they say?

Foggy

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Post by Foggy » Tue Oct 27, 2020 1:08 pm
The usual terms say that you cannot have credit of more than £500 without the IP's permission. If you take into account the usual credit lines of utilities (gas, electric and water are often used first and paid for later) and car insurance on installments, this figure is usually blown out of the water already.

I would say that you need to heed your IPs requirements to get this breach remedied. Non-compliance will possibly see the arrangement failed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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