Bank stopped overdraft without telling me!!!

WoundUp
WoundUp Posts: 12 Forumite
in Budgeting & bank accounts
Hi,

I am hoping someone might be able to help me with a HUGE problem I have discovered today.

I went to my bank to withdraw some cash and knew I had a £200 overdraft but it was only showing my available credit. This had happened a few days ago but I assumed that there was a pending direct debit due out.

I suddenly realised that there was something wrong, as the debit would have cleared by today.

I have phoned the Bank today and have been informed that as of the 29th of June, my overdraft facility was removed. The lady in the lending centre could not see why this had happened on the system. She said my current account looked ok and there was no reason for this on the system.

I relied on my overdraft every month as my bills have been a bit heavier recently and now have so many charges, that I wrongly assumed were given to me as I had gone over my overdraft. These charges were because I had no overdraft.

Can Banks do this without telling you first? Is there any way of getting it back without having to apply for it again. I cannot do this as I took out the overdraft about 8 yrs ago and my credit rating was fantastic but due to financial dificulties, my credit rating is now low. Surely I should not have to re-apply if it was a banking error in the first place?

I assumed that there was a banking code of conduct, and if they changed anything on your account, they had to tell you first?

I am really quite upset about all this and need some good advice about what to do next. :(
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Comments

  • thatsean
    thatsean Posts: 992 Forumite
    It's repayable on demand - they don't have to prewarn you (although it would be nice)

    Have you asked for it back yet?

    If you're using it a lot, that might be the reason for it going, or it could have been set up with a fixed end date, and just expired
  • stclair
    stclair Posts: 6,844 Forumite
    Name Dropper First Anniversary First Post
    edited 23 August 2010 at 6:32PM
    AS thatsean has said overdrafts are repayable on demand.

    Alot of people tend to forget overdrafts also have expiry dates as the facility really was only put in place for short term lending.

    The best thing to do is to ask the bank in question if they will allow you to have your overdraft back.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • WoundUp
    WoundUp Posts: 12 Forumite
    I have just looked in the terms and conditions of NATWEST overdraft facility and they state that they will 'always tell you if we intend to place any restrictions on your ability to make withdrawals under an overdraft facility'
    They also quote that they give 30 days notice if they intend to withdraw your overdraft.

    If this is in writing, then surely I have a case to complain if there was no letter sent. I do not have internet banking so an email could not have been missed.
  • thatsean
    thatsean Posts: 992 Forumite
    Took me about 10 seconds to find this....

    You missed b

    6 OVERDRAFTS AND UNPAID ITEMS
    6.1 Availability
    6.1.1 Unless indicated otherwise in the Account Specific Conditions for
    your account, arranged overdrafts are available on request if you
    are aged 18 or over and you satisfy our criteria.
    6.1.2 We may change your overdraft limit by giving you personal
    notice of the new limit . If we are reducing the limit :
    (a) we will normally give you not less than 30 days’ notice of
    the reduction; but
    (b) our notice may provide for the reduction to come into effect
    immediately if, as a result of the way you operate your
    account or, of your financial circumstances, we have
    reasonable grounds to believe that you may have difficulty in
    meeting your commitments.

    Have you checked it hasn't just expired?
  • stclair
    stclair Posts: 6,844 Forumite
    Name Dropper First Anniversary First Post
    WoundUp wrote: »
    I have just looked in the terms and conditions of NATWEST overdraft facility and they state that they will 'always tell you if we intend to place any restrictions on your ability to make withdrawals under an overdraft facility'
    They also quote that they give 30 days notice if they intend to withdraw your overdraft.

    If this is in writing, then surely I have a case to complain if there was no letter sent. I do not have internet banking so an email could not have been missed.

    I bet you overdraft has just expired, if thats the case you will need to reapply.

    What did the previous advisor say at natwest did they say they was going to look into it?
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • stclair
    stclair Posts: 6,844 Forumite
    Name Dropper First Anniversary First Post
    thatsean wrote: »
    Took me about 10 seconds to find this....

    You missed b

    6 OVERDRAFTS AND UNPAID ITEMS
    6.1 Availability
    6.1.1 Unless indicated otherwise in the Account Specific Conditions for
    your account, arranged overdrafts are available on request if you
    are aged 18 or over and you satisfy our criteria.
    6.1.2 We may change your overdraft limit by giving you personal
    notice of the new limit . If we are reducing the limit :
    (a) we will normally give you not less than 30 days’ notice of
    the reduction; but
    (b) our notice may provide for the reduction to come into effect
    immediately if, as a result of the way you operate your
    account or, of your financial circumstances, we have
    reasonable grounds to believe that you may have difficulty in
    meeting your commitments.

    Have you checked it hasn't just expired?

    I would say that the OP may have fallen into section B and the bank have decided to pull the plug.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • WoundUp
    WoundUp Posts: 12 Forumite
    I was told that as they couldn't figure out why it had been cancelled on screen (there were no notes, no reasons) then I should go into my branch tomorrow to ask why.

    I have had this overdraft for at least 7 years now and have conducted my account in exactly the same way as I always have.

    That's why I am so confused.
  • thatsean
    thatsean Posts: 992 Forumite
    Seems pretty odd then - chances are it might have been set up years ago with a far away expiry date - hence it dropping off now for no obvious reason.

    That said in your first post you mentioned that your credit rating is much worse now that when you applied for the overdraft, maybe you're no longer in criteria for the facility, I believe NW use external data as well as the account performance
  • stclair
    stclair Posts: 6,844 Forumite
    Name Dropper First Anniversary First Post
    WoundUp wrote: »
    I was told that as they couldn't figure out why it had been cancelled on screen (there were no notes, no reasons) then I should go into my branch tomorrow to ask why.

    I have had this overdraft for at least 7 years now and have conducted my account in exactly the same way as I always have.

    That's why I am so confused.

    Im surprise youve been told to speak to your branch as they wont be able to shed anymore light on it really. Its lending who should be looking into it really !
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • paulmcerlean
    paulmcerlean Posts: 831 Forumite
    They will know about your low credit rating as they get monthly feeds from the credit reference agencies regarding your conduct with other commitments. This will have caused them to pull the plug.
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