Supporting our overdraft

customers

If you are worried about the cost of your overdraft, we’re here to help. There are a number of ways in which we may be able to support you:

• You could consolidate your overdraft debt into a Debt Consolidation Personal Loan and only have one payment to make each month (eligibility criteria applies). This option may impact your ability to obtain credit in the future, and if you track your credit score, you might find it starts to decrease. 
• Use our Overdraft cost calculator to see what an overdraft would cost you based on your circumstances. This will not harm your credit score.
• Book a Financial Health Check appointment with one of our highly trained senior personal bankers who may be able to suggest ways to help you take control of your finances.
• Use our Budget calculator to help plan your finances.
• Visit our Managing your money page which provides a range of helpful tools and information to help make the most of your money.

If you know your finances won’t, or are unlikely to improve, we have a number of options available to you. This may include setting up a repayment plan, or placing a temporary hold on your account so you have some time to seek independent financial support.  

These options may impact your ability to obtain credit in the future, and if you track your credit score, you might find it starts to decrease.

We understand things are a little uncertain at the moment, so we’ll need to get a better understanding of your current financial situation, you can do this by using our online affordability tool. 

More information around what to expect when you contact us, independent debt advice, and how to access our online affordability tool can be found by visiting our Struggling financially page.

There is a range of support on offer from third parties outside of the bank. These services are available online or by telephone, and some services may also be available face-to-face.

If you are struggling with your finances, you can get free debt advice. We partner with PayPlan (a third party company), who can offer you free confidential advice for all of your debts. 

Start your journey with PayPlan

Other independent organisations who can help

Citizens Advice
Free advice on debt, benefits, housing, legal matters, employment and general consumer advice.

Money Advice Service
Free Money Navigator tool which gives you action plans based on your own situation.

Shelter
Free advice on housing, debt, benefits, eviction & homelessness.

National Debt Line
Free and confidential advice on debt.

Financial Conduct Authority (FCA)
Find out what you can do to help yourself get back on track if you are experiencing a change in financial circumstances due to coronavirus (COVID-19).

If you’re financially impacted by coronavirus and haven’t already had the maximum of two 3 month interest free periods applied to your account, you will have until 31^st January 2021 to request £500 interest free on your existing arranged overdraft (or up to your existing arranged overdraft limit if lower than £500) for a 3-month period. We’ll also reduce your interest rate on any borrowing above the interest free amount for the same period.

If we've already agreed an interest free period on your overdraft as part of the coronavirus support on or after 2nd July 2020, this will apply to your arranged overdraft for a period of 3 months from the date of your application. We’ve also kept your interest at a temporary reduced rate, on any borrowing above your interest free amount for the same 3 month period. If you remain financially impacted by coronavirus and your first 3 month interest free period has either already ended or is due to end on or before 31^st January 2021, you have until then to request a second interest free period for a further 3 months.

If we’ve already agreed an interest free period on your overdraft as part of the coronavirus support on or before 1st July 2020, we automatically extended this for you for a further 3 months from when your interest free period was due to end. We’ve also kept your interest at a temporary reduced rate, on any borrowing above your interest free amount for the same extended time period. This happened automatically. You should have received a text in July to confirm this.

It’s important to remember that after the period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance.

Compare your contractual and temporary reduced rate.

If you requested the interest free amount, we also reduced the overdraft interest rate that you'll pay for any borrowing above your interest free amount for the same period.

Compare your contractual and temporary reduced rate.

Please note, this isn’t a change to your overdraft terms.

Before your interest free period ends, we'll remind you of the exact end date, as well as the contractual interest rate which will apply to your arranged overdraft. If you remain financially impacted by coronavirus and your first 3 month interest free period is due to end on or before 31^st January 2021, we’ll also remind you that you have until then to request a second interest free period for a further 3 months.

Please remember that after the interest free period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance.

If you’re concerned about being able to afford your existing overdraft after the interest free period ends, there are a number of ways in which we can help. Please visit the What further support is available? section on this page where you can access further support. If you do nothing about your financial situation then there is a risk that it could get worse.

If your interest free period is coming to an end, then don’t worry about forgetting when this will happen. We'll remind you of the exact date that the period will end, as well as the contractual interest rate which will apply to your arranged overdraft. If you remain financially impacted by coronavirus and your first 3 month interest free period is due to end on or before 31^st January 2021, we’ll also remind you that you have until then to request a second interest free period for a further 3 months.

If you’re still worried about the cost of your overdraft after your interest free period ends, please visit our What further support is available? section on this page where you can access further support.

If you apply for a new interest free period on your overdraft as part of the coronavirus support, this will apply to your arranged overdraft for a period of 3 months from the date of your application. We’ll also keep your interest at a temporary reduced rate, on any borrowing above your interest free amount for the same 3 month period.

If we’ve already agreed an interest free period on your overdraft as part of the coronavirus support on or after 2nd July 2020, this will apply to your arranged overdraft for a period of 3 months from the date of your application. We’ve also kept your interest at a temporary reduced rate, on any borrowing above your interest free amount for the same 3 month period. If you remain financially impacted by coronavirus and your first 3 month interest free period is due to end on or before 31^st January 2021, you have until then to request a second interest free period for a further 3 months.

If we’ve already agreed an interest free period on your overdraft as part of the coronavirus support on or before 1st July 2020, we’ve automatically extended this for you for a further 3 months from when your interest free period was due to end. This means this will be in place for 6 months. We also automatically kept your interest rate at the same lower rate rather than the standard contractual rate. This applies to any overdraft borrowing above the interest free amount for the 6-month period.  You should have received a text in July to confirm this.

It’s important to remember that after the period ends, we’ll start to charge interest at your contractual rate on the full overdrawn balance.

No. The interest free amount only applies to arranged overdrafts. However, the temporary reduced interest rates are applicable to both arranged and unarranged overdrafts. Our interest on unarranged overdrafts is capped at £17.25 per month with a maximum of £20 on unarranged borrowing per month including unpaid item fees.

The temporary lower levels of interest are the overdraft interest rates we are offering to customers to support those financially impacted by the coronavirus pandemic. This rate depends on the account type you hold with us and is lower than the standard rate in your account terms and conditions. 

Whilst using our temporary coronavirus support, most customers will pay Representative 19.89% APR (variable) or 14.89% APR (variable), rather than our planned rate of Representative 39.49% APR (variable). Reward Black customers will remain at Representative 14.89% APR (variable), rather than moving to Representative 19.49% APR (variable). 

You can find more details on our rates comparison page.