Bank taking money

[horselady]

Hi there

Quick question. My pension lump sum will go into my bank in the next few weeks. I have loads of things I want to pay off, store cards, credit cards, etc. I have an overdraft with Lloyds, no problem or trouble with them, my salary goes in regularly and I am carrying on working part time, which together with my pension almaost equals my present salary. However, someone mentioned that Lloyds may just help themselves to some money to pay off the overdraft. Can they do this? I thought that only happened if you had problems with the bank and missed payments for things like loans etc.

[themas]

They can do it, but as you say it only normally happens if you are having problems keeping up with contractual payments.

If you want to be absolutely sure, open an account with a bank that you don't owe anything to (& this includes credit cards etc. which the bank runs) & get the lump sum paid in there.

[factor-fiction]

I'm surprised you want to keep your overdraft. I expect you are paying a high rate of interest / high overdraft charges.

[horselady]

Thanks both. It just surprised me when someone mentioned this. Obviously as soon as the money goes in, the account will be way in credit, but I want to be a bit selective about what gets paid off and that will be store cards and credit cards, one of which is Egg who closed my account last year like they did for lots of others. The overdraft is at the end of the queue! I'd rather be left with an overdraft and no credit card debts.

[Rollo]

I have a Lloyds Classic account with an approved overdraft facility.

Any credit that goes into the account reduces my overdraft - if I have one at that time. But it does not matter, in that the approved overdrafy facility is still there - up to the approved amount. So I can then go back overdrawn up to the pre-approved limit, if I need to.