Overdraft charges & eligibility

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thisisalasdair
thisisalasdair Posts: 9 Forumite
in Budgeting & bank accounts
Hello all,

I paid off a £1,000 Nationwide overdraft (which I used up every month) with my pay at the end of December and January as part of my debt free plans. I then cancelled the overdraft so I would't go into the red again. Just yesterday (March 15) Nationwide charged me another 'Daily Arranged Overdraft Usage Fee' even though I've not had this since January 31. This looks like a mistake to me. What do people think? Surely the last fee would have been taken in February for January?

Nationwide now say they wouldn't provide me with an overdraft at present: "after careful assessment of your personal financial circumstances". This has me scratching my head as I voluntarily decided to pay off the overdraft. I've also been paying down a credit card I have with them.

Can anyone share any wisdom?

All help appreciated.

Comments

  • jimjames
    jimjames Posts: 17,656 Forumite
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    thisisalasdair wrote: »
    Hello all,

    I paid off a £1,000 Nationwide overdraft (which I used up every month) with my pay at the end of December and January as part of my debt free plans. I then cancelled the overdraft so I would't go into the red again. Just yesterday (March 15) Nationwide charged me another 'Daily Arranged Overdraft Usage Fee' even though I've not had this since January 31. This looks like a mistake to me. What do people think? Surely the last fee would have been taken in February for January?
    When are fees applied? If it's a month then it might be correct, notify in Feb, deduct in March.
    thisisalasdair wrote: »
    Nationwide now say they wouldn't provide me with an overdraft at present: "after careful assessment of your personal financial circumstances". This has me scratching my head as I voluntarily decided to pay off the overdraft. I've also been paying down a credit card I have with them.
    Have you asked for another overdraft? What triggered them to send that message, it's not one they've ever sent me?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • thisisalasdair
    thisisalasdair Posts: 9 Forumite
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    Thanks for your response.

    Yes, fees are monthly. It just seems out of step with usual way banks charge.

    Re: I clicked on the overdraft button on my phone app. I'm not looking to have this reinstated but the 'warning' notice appeared. Nationwide didn't say I could no longer have an OD, I chose to shut it down.
  • meer53
    meer53 Posts: 10,217 Forumite
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    Removing an overdraft is assessed in the same way as increasing one so the message was probably in response to you removing it.
  • grumbler
    grumbler Posts: 58,629 Forumite
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    thisisalasdair wrote: »
    ...I then cancelled the overdraft so I would't go into the red again. ....
    Wouldn't or couldn't?
    Beware that cancelling it doesn't stop you from getting overdraw, but will just make this more expensive.
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