El Cid Posted February 28, 2017 Author Share Posted February 28, 2017 Just read the T&Cs that clearly say that you must be over 18 to apply for the overdrafts. Thanks, I havnt read that far, Link to comment Share on other sites More sharing options...
Berberis Posted February 28, 2017 Share Posted February 28, 2017 Im surprised by this, when my son applied for a current account he was told he couldnt have an overdraft as they cant lend money to anyone under 18? If I remember rightly its because an U18 cant sign a contract, which is what an overdraft is. It means that if they get into debt the bank cant take them to court for it. ignore me, i'm possible wrong Link to comment Share on other sites More sharing options...
nikki-red Posted February 28, 2017 Share Posted February 28, 2017 ignore me, i'm possible wrong Im happy to be corrected, go for it I said 'If I remember rightly' so its quite possible that I dont. Link to comment Share on other sites More sharing options...
El Cid Posted February 28, 2017 Author Share Posted February 28, 2017 Im surprised by this, when my son applied for a current account he was told he couldnt have an overdraft as they cant lend money to anyone under 18? If I remember rightly its because an U18 cant sign a contract, which is what an overdraft is. It means that if they get into debt the bank cant take them to court for it. I think that is right, looks like the banks are tempting people into a debt cycle by making it free. Link to comment Share on other sites More sharing options...
Cyclone Posted February 28, 2017 Share Posted February 28, 2017 I think that is right, looks like the banks are tempting people into a debt cycle by making it free. Student overdrafts have been free for many decades. It's not some nefarious plan to temp people, it's to enable students to survive 3 or 4 years at university. Link to comment Share on other sites More sharing options...
biotechpete Posted February 28, 2017 Share Posted February 28, 2017 I think that is right, looks like the banks are tempting people into a debt cycle by making it free. Actually, with my bank they continued to give it interest free, when I converted to a graduate account. At the time you are earning, you get 3 years to pay it back, interest free. Incidentally, I have remained with the same bank now that I have a mortgage and savings. The reason they do it is to get people to stick with the same bank after graduating so they earn the money back many fold. Link to comment Share on other sites More sharing options...
El Cid Posted February 28, 2017 Author Share Posted February 28, 2017 Student overdrafts have been free for many decades. It's not some nefarious plan to temp people, it's to enable students to survive 3 or 4 years at university. If you are referring to university, 1.6%-4.6% Link to comment Share on other sites More sharing options...
Cyclone Posted February 28, 2017 Share Posted February 28, 2017 I believe that my bank reduced the interest free balance by £500 each year after graduation. So it stepped down from £1500 to £0 by the time you'd graduated 4 years ago. ---------- Post added 28-02-2017 at 12:28 ---------- If you are referring to university, 1.6%-4.6% Which is it? the banks are tempting people into a debt cycle by making it free. Free, or 1.6 to 4.6 percent. It can't be both. Link to comment Share on other sites More sharing options...
El Cid Posted February 28, 2017 Author Share Posted February 28, 2017 Free, or 1.6 to 4.6 percent. It can't be both. School children are students, this topic has been about both students studying for A levels and university students. Link to comment Share on other sites More sharing options...
999tigger Posted February 28, 2017 Share Posted February 28, 2017 School children are students, this topic has been about both students studying for A levels and university students. How can it be tempting people into debt if they dont even let you apply for an O/d till you are 18? the Lloyd's account is clearly aimed at students about to start Higher education. It says Confirmation of your student status We’ll need your UCAS confirmation of place letter (usually issued after your A Level or Higher results during August). You will need to print this letter from your UCAS Track profile once your place is confirmed. Or if you don’t have this, a letter from your university or college confirming your place. Overdrafts have been offered ever since I can remember. they are part of student finance and if anything they are there to stop people getting into expensive debt by being interest free. Link to comment Share on other sites More sharing options...
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