AIB student overdraft

WoollyRedHat

Just wondering if anyone can give me some advice. I got out an interest free overdraft last year with AIB. I recently received a letter stating that said overdraft was due to expire. This came as a surprise to me, as I thought it was valid as long as I was a student and held an student plus account there.

They said because I hadn't made an attempt to make any repayments that I didn't get the option to renew my overdraft as you were and told me my best option was to enter into a loan agreement. I don't have my orginal terms on me so I can't find out the exact details, but any other overdraft I've been on has been valid for as long as I was a student.

I thought that by making an agreement to start some repayments would allow me to remain on an interest free overdraft but this is apparently not the case, which I find odd. Was I pressured into accepting a loan agreement? They asked me to sign accepting to cancel my overdraft, thus facilitating the switchover to a loan agreement, which commits me to paying a fixed amount per month. Can anyone shed some light for me please?

ETA: Sorry if I posted this in the wrong place.. just noticed the banking forum now.

wmpdd3

Are you a second year student?

Do you have an income?

Is there no money at all going into your account?

As far as I know an overdraft can be canceled at any time by the bank. but you can also move banks and take out another overdraft.

If you have no income you will have to approach the bank and give them a date for the repayments you plan to make whether they are to a loan or an over draft.

WoollyRedHat

wmpdd3 wrote: »

Are you a second year student?

Do you have an income?

Is there no money at all going into your account?

As far as I know an overdraft can be canceled at any time by the bank. but you can also move banks and take out another overdraft.

If you have no income you will have to approach the bank and give them a date for the repayments you plan to make whether they are to a loan or an over draft.

Hey..
Third year..

There has been none for the last year.
I have approached the bank to make repayments and confirmed I have recently gained regular income, but they have stated I need to move over to loan agreement.

emeldc

I find it amazing that banks will give overdrafts to students with little or no income and yet refuse to give them to small business that can prove an operating profit ....... like mine.

As far as I know the account with the overdraft facility still needs to hit the 'black' for X number of days throughout the year in order for it to be renewed the next year.

Greenmachine

Seemingly you need a guarantor before they will give out the overdraft. Also maximum student overdraft is €500. Did you keep the account in credit for 30 consecutive day in the previous year at any point. That too was one of the requirements.

keithclancy

Overdrafts to full time students ... wtf :rolleyes:

Nody

keithclancy wrote: »

Overdrafts to full time students ... wtf :rolleyes:

It makes sense to be honest; most students will not pay them back and you can convert it into a loan (unsecure so a nice interest rate) and get the young once used to paying back (and living) on loaned money is the normal state of things.

wonski

Not sure if there are any special rules regarding student accounts, but overdraft always were to be repaid on demand. You have to find your agreement, or look online for current terms and conditions on their website.

Cabaal

I can see why they'd want to change it to a loan, there's been no money going into the account and this worries them,

It also gives them justification to not allowing you to keep the overdraft service...you've not kept up your side of things by paying anything off it.

In all honesty op it sounds like you used it as free cash, no disrespect

hfallada

OP go to another bank and get an overdraft with them. Then pay off your aib one.

grodge

i got an AIB overdraft on a student a/c a couple of times with AIB. the max duration is 1 year and €500 limit.

I think the terms are that you need to be employed and have some income and be employed for longer than 6 months at the time of application. also you need to be in credit at the time of application, and you cant be over the limit on your credit card if you have one of those as well.

its really only a facility to cover you for a few months if you know you have some bills coming up and your income wont suffice (tax, insurance, cover your expenses when your not working during exams etc.)

hope this helps you out