Nationwide reducing FlexDirect Overdraft

gazfocus

I have received a letter today from Nationwide informing me that in 3 weeks time, they will be reducing my overdraft limit from £750 to £250 as I am not paying in enough money per month to service the account. They are then going to charge me 50p per day for using anything over £10 of the overdraft.

When I signed up for the account, I was informed that the overdraft was fee free for 12 months and I acknowledge that they require a set amount to be paid into the account each month but I had also instructed them, during my application, to transfer all my direct debits and payments from my old Barclays account to the Nationwide one.

Not knowing how long this process takes, I haven't really chased it and eventually forgot about it. Now I get the distinct impression that they've forgotten about doing it as well and I'm not happy that I'm the one having to suffer because of it.

Is there any point in me phoning them to try and get them to reverse their decision? Has anyone here had any joy in doing this previously? I would add that my intention was for my wages to be paid into the nationwide account and then all bills come out of it.

Thanks

cifpower

Are you paying in what is required to service the account?

alanq

cifpower wrote: »

Are you paying in what is required to service the account?

That question seems already to have been answered.

gazfocus wrote: »

I am not paying in enough money per month to service the account.

Mr_Goodkat

As long as you opened the account on or after the 16th September 2013 and instructed them to switch your current account, it should have been done within seven days. If you are just using the OD and not paying money in it is no surprise that they have reduced it. You need to phone them up and ask why they did not complete the switch as per your instruction? They may still be willing to complete the switch and reinstate the overdraft. Just forgetting about things as important as banking and bank accounts is always a recipe for things going wrong...

colsten

gazfocus wrote: »

I have received a letter today from Nationwide informing me that in 3 weeks time, they will be reducing my overdraft limit from £750 to £250 as I am not paying in enough money per month to service the account. They are then going to charge me 50p per day for using anything over £10 of the overdraft.

this sounds as if your 12 month deal is going to expire in 3 weeks time? Though you should get 28 days notice
http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts#tab:Ratesfeesandampoverdrafts

gazfocus wrote: »

When I signed up for the account, I was informed that the overdraft was fee free for 12 months and I acknowledge that they require a set amount to be paid into the account each month but I had also instructed them, during my application, to transfer all my direct debits and payments from my old Barclays account to the Nationwide one.

how would you have paid for those DDs and SOs if you aren't paying money into the FlexDirect? Did you ask Nationwide to switch your Barclays account?

gazfocus wrote: »

Not knowing how long this process takes, I haven't really chased it and eventually forgot about it.

forgive me but this is a bit of a lame excuse, seeing that you actually can give Nationwide the date on which you wish the switch to be complete. So you could have diarised it. It also doesn't sound very credible that someone asks to switch their main account and then just forgets about it. Are you sure you really asked for the switch?

gazfocus wrote: »

Now I get the distinct impression that they've forgotten about doing it as well

You don't need to work with 'distinct impressions', you can just check what is on your Nationwide account (and perhaps also on your Barclays account if that still exists).

gazfocus wrote: »

I'm not happy that I'm the one having to suffer because of it.

How are you going to suffer? Overdrafts can always be called in in part or in full any time a lender likes.

gazfocus wrote: »

Is there any point in me phoning them to try and get them to reverse their decision?

you could try and grovel a bit. You can certainly ask why they haven't given you 28 days notice as advertised though perhaps don't focus on that if you want a favour from them.

It's quite unlikely that a credit decision will be overturned. They would run their credit check again and probably end up with the same result as your position with them hasn't substantially changed since they decided they want to lower your available credit.

gazfocus wrote: »

I would add that my intention was for my wages to be paid into the nationwide account and then all bills come out of it.

From what you say, this wasn't really a firm intention, was it?

gazfocus

cifpower wrote: »

Are you paying in what is required to service the account?

No, as I was waiting for them to switch my account.

Mr_Goodkat wrote: »

As long as you opened the account on or after the 16th September 2013 and instructed them to switch your current account, it should have been done within seven days. If you are just using the OD and not paying money in it is no surprise that they have reduced it. You need to phone them up and ask why they did not complete the switch as per your instruction? They may still be willing to complete the switch and reinstate the overdraft. Just forgetting about things as important as banking and bank accounts is always a recipe for things going wrong...

The account was opened in March of this year. As I said, I don't know how the switching service works so didn't know how long it should take.

colsten wrote: »

this sounds as if your 12 month deal is going to expire in 3 weeks time? Though you should get 28 days notice
http://www.nationwide.co.uk/products/current-accounts/flexdirect/rates-fees-overdrafts#tab:Ratesfeesandampoverdrafts

No, the account was only opened 5 months ago.

colsten wrote: »

how would you have paid for those DDs and SOs if you aren't paying money into the FlexDirect? Did you ask Nationwide to switch your Barclays account?

Yes, I had asked them to switch my Barclays account.

colsten wrote: »

forgive me but this is a bit of a lame excuse, seeing that you actually can give Nationwide the date on which you wish the switch to be complete. So you could have diarised it. It also doesn't sound very credible that someone asks to switch their main account and then just forgets about it. Are you sure you really asked for the switch?

I'm not saying I'm not at fault here as I should have chased it up. As far as I was concerned everything was going to be seamless (that's what I was led to believe) and I was advised I didn't need to do anything so why would I have reason to think about it?

colsten wrote: »

you could try and grovel a bit. You can certainly ask why they haven't given you 28 days notice as advertised though perhaps don't focus on that if you want a favour from them.

It's quite unlikely that a credit decision will be overturned. They would run their credit check again and probably end up with the same result as your position with them hasn't substantially changed since they decided they want to lower your available credit.

From what you say, this wasn't really a firm intention, was it?

Will have to give it a go.