Help: Overdraft

Overdraft

• What is the Cashplus overdraft?

  It’s a fixed credit limit that’s attached to your Cashplus Personal or Business Bank Account. You can automatically dip into it when you don't have any money in your account and use it on anything you choose - from covering bills, to everyday purchases and withdrawing cash. And it's reusable which means you can continue to use the overdraft limit as you pay off the amount you've used in part or in full.

• How do I get an overdraft?

  The Cashplus overdraft is available only to eligible customers, by invitation - we’ll send you an email and Online Banking message to let you know. If you’ve opted out of receiving Cashplus marketing communications, you won’t be sent any credit offers. If you wish to update your communication preferences, go to Settings > Manage notifications in the Cashplus Bank app or Online Banking.
  
  Once you've received an offer from us, simply log into your Online banking account or the Cashplus Bank app, navigate to the overdraft screen (within Add-ons or from the tile on your Account Overview) and follow the steps to complete your application. Please remember to read and accept your Credit Agreement.
  
  Once you've successfully signed up, the annual fee will be deducted from your balance automatically (if applicable). Your overdraft will normally be added onto your account within a few hours, but if we receive your completed application after 4pm on a Friday or over the weekend, it will be available from midday on the next business day.

• How much does an overdraft cost?

  The first £5 of your overdraft is free to use. We'll charge you interest on any daily overdraft balance greater than £5. You can find information about your interest rate in your monthly statements.

  You can also use the cost calculator on our website to see how much a Cashplus overdraft could cost you in pounds and pence.

  As an example, if you borrow £500 it will cost you:

  	For 1 day	For 1 week	For 1 month	For 1 year
  57.07%	£0.77	£5.42	£23.22	£282.50

  There are no other fees or charges for using your overdraft. 

• Are there any other overdraft fees?

  If you're a Personal account holder there are no fees. 

  If you're a Business account holder an annual fee will be applied to your overdraft when opened. We'll tell you the annual fee when we invite you to apply.

• How do I repay my overdraft?

  Each monthly statement period, we'll send an overdraft statement to your Online banking inbox. This will confirm how much you owe in daily usage fees and when it needs to be paid.
  
  To repay your overdraft, simply pay money into your Cashplus Bank Account, via any of the methods you would normally use, no later than the date shown on your statement. We recommend that you pay in full to keep charges to a minimum.

• Will I Receive overdraft statements?

  Yes, each month we'll send your overdraft electronic statement to your Online banking inbox which will show:

  • Your credit limit
  • Your balance (on the statement date)
  • The amount of interest charged, and the rate it was charged at
  • The minimum payment due
  • The payment due date
• Can I have more than one credit product at one time?

  Please see our table below, to find out which credit product combinations you can have on your Bank Account:

  Business Credit Add-ons

  	Debit Protect	Overdraft	Creditbuilder
  Debit Protect	NA	Yes	Yes
  Overdraft	Yes	NA	Yes
  Creditbuilder	Yes	Yes	NA

  Personal Credit Add-ons

  	Debit Protect	Overdraft	Creditbuilder
  Debit Protect	NA	Yes	Yes
  Overdraft	Yes	NA	Yes
  Creditbuilder	Yes	Yes	NA

   

• What if I can't afford my repayments?

  If you can’t afford to make your repayment on time, contact us on 0203 059 5784 (calls may be recorded) straight away – we may be able to help.
  
  Alternatively, if you’re experiencing financial difficulty, you should consider contacting the Citizens Advice Bureau who may be able to help you with free information and confidential advice. Please visit www.citizensadvice.org.uk or call 03444 111 444.
  
  Please remember, not making payments on time can damage your credit score.

• Will Cashplus credit add-ons affect my credit score?

  Yes, using our credit products could impact your score.
  
  If you manage your credit responsibly and make all your repayments on time, this could have a positive impact on your credit rating.
  
  If you're late with, or miss your repayments, this could hurt your credit rating.

• Can I opt out of receiving credit offers?

  Absolutely, if you don't want to receive any future credit offers from us, just let us know by emailing us at [email protected]

  If there's a specific product you don't want to receive offers about, please include that in the subject line, so we can let you know when you're eligible for other suitable products.

• Will I receive any alerts?

  We'll automatically send you an alert if you're about to enter your overdraft, have entered it, or are approaching your credit limit. These alerts can help you manage your overdraft and avoid charges. We'll send alerts to your registered mobile device, unless you've already opted out.

  You can choose to stop these alerts, if you wish, by contacting Customer Services.

• What happens if i go over my credit limit?

  You’ll only be able to make payments from you Cashplus Account if you stay within your credit limit. We'll always attempt to return any transaction that will take you over your limit, which may result in payments being returned unpaid.

• Are you a responsible lender?

  At Cashplus, we’re serious about our commitment to responsible lending.

  We strive to be responsible and completely clear and open about any charges involved with all our products. We offer what we believe you can afford to repay, with an amount that meets both your needs and your ability to make your repayments.

• What if I can't afford my repayments?

  If you can’t afford to make your repayment on time, contact us on 0203 059 5784 (calls may be recorded) straight away and we will do our best to help.

  If you’re struggling to manage your finances, we encourage you to speak to our Credit Management Team directly about how best to manage your payments and reduce your debt.

  If you’d rather get independent, impartial, free and confidential help, you can speak to any of these:

  • Citizens Advice Bureau
  • StepChange
  • Money Advice Service
  • Business Debtline

  Please remember, not making payments on time can damage your credit score.

• What is overdraft repeat use?

  If your account is in overdraft repeat use, this means your overdraft has been frequently used, which can lead to high avoidable costs due to higher levels of interest than other credit options.

  Relying on short-term credit facilities like an overdraft could mean you’re spending more on interest than you need to be, so we encourage you to seek advice and consider whether changing your borrowing patterns or choosing another borrowing option could reduce the costs associated with repeated overdraft use.

• Why are you contacting me about my overdraft being in repeat use?

  To protect customers from suffering financially, the Financial Conduct Authority (FCA) has introduced new rules that require lenders to take action to help customers reduce the high avoidable costs often associated with repeated overdraft use. As a responsible bank, we want to help you stay in control of your finances and we’re required to let you know if you’re in overdraft repeat use.

  If you’re in overdraft repeat use, we will:

  • Inform you that you’re in overdraft repeat use (usually by email)
  • Encourage you to give us a call so we can help support in any way we can
  • Direct you to independent and free services that can assist you if you’d prefer

  We’ll send you reminders if we observe repeat overdraft usage, and if we see you’re in financial difficulty, we may get in touch to discuss other options such as a credit freeze to help support you. 

• What tools can I use to manage my spending?

  Using Online Banking and the Cashplus Banking App, you can keep a close eye on your spending and know when you’re close to or already using your overdraft.

  We’ll also send you SMS/text alerts to let you know when you’re nearing your overdraft, have entered your overdraft and when you’ve used more than 80% of your overdraft limit. 

• What happens if I don’t reduce the usage on my overdraft?

  Relying on short-term credit facilities like an overdraft could mean you’re spending more on interest than you need to be, so we encourage you to seek advice and consider whether changing your borrowing patterns or choosing another borrowing option could reduce the high avoidable costs associated with repeated overdraft use.

  If we believe that your overdraft repeat use may be causing you financial difficulties, we may need to temporarily suspend use of the overdraft whilst we discuss a way forward.

  You can use our overdraft calculator to see the cost of using your overdraft in pounds and pence, which will help you compare the cost to other ways of borrowing.

   

• Will my credit score be impacted if I’m in overdraft repeat use?

  We don’t report your overdraft repeat use to the credit reference agencies, so there’s no direct record left on your credit file.

  However, we do report your overdraft balance and credit limit to the credit reference agencies, so if you apply for credit in the future then other lenders will be able to see how much borrowing you’ve used and for how long.

   

• I’m struggling to manage my finances and repayments. What help can I get?

  Our team are here to help with any queries you have about your account, so please contact us and we’ll do our best to help you.

  If you’re struggling to manage your finances, we encourage you to speak to our Credit Management Team directly about how best to manage your payments and reduce your debt.

  If you’d rather get independent, impartial, free and confidential help, you can speak to any of these:

  • Citizens Advice Bureau
  • StepChange
  • Money Advice Service
  • Business Debtline
• Can I increase my overdraft limit?

  If you’re eligible to increase your credit limit and have opted in to receive Cashplus marketing communications, we’ll send you an email invitation.

  If you’ve opted out of receiving marketing communications, you won’t be receiving any credit offers from us including the option to increase the credit limit on your Overdraft.

  You can review your communication preferences in the Cashplus Bank app and Online Banking.

  Just follow the steps below.

  1. Log in to the Cashplus Bank app or Online Banking
  2. Go to Settings > Manage notifications
  3. Select your notification preferences
  4. Click ‘Marketing updates’ to view and decide what channels (if any) you’d like to be contacted by. If you’d like to receive future credit limit increase offers, make sure you’ve opted into the ‘email’ channel.