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  • FIRST POST
    • MSE Guy
    • By MSE Guy 28th Apr 09, 9:09 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    Has your overdraft been cancelled?
    • #1
    • 28th Apr 09, 9:09 PM
    Has your overdraft been cancelled? 28th Apr 09 at 9:09 PM
    We're hearing worrying stories of banks closing people's overdrafts, while they're overdrawn, without warning and sometimes adding charges because they're then in the red.

    We want to know how widespread this is, so please report your story if it's happened to you.


    Please include:
    • Current account provider
    • Overdraft limit before change
    • Overdraft balance at time
    • New overdraft limit after change
    • Whether this happened at an official overdraft review
    • Any charges
    • Whether you were notified
    See our news story for more information and the news story discussion thread to debate the issue.
    Last edited by Former MSE Helen; 05-09-2013 at 12:32 PM.
Page 10
  • BillJones
    If you have not been informed, what makes you believe that it's been cancelled?
    • Thrugelmir
    • By Thrugelmir 12th Apr 14, 12:10 AM
    • 55,539 Posts
    • 48,889 Thanks
    Thrugelmir
    Just to let people know who may be interested that what can only be attributed by the co-op's current financial mess that they cancelled my overdraft on my student account without notice. I only realised 3 weeks after it had supposedly been cancelled. I have had to pay a deposit on a house for university next year, I paid to go and visit a relative in France and I'm currently going through the motions of taking a car dealer to a small claims court, this left me thinking I would just have to dip into my overdraft until I get paid at the end of the month however I then found out to my detriment that my overdraft limit has been reduced from £1400 to nil, without myself being notified.

    Current account provider: Cooperative Bank
    Overdraft limit before change: £1400
    Overdraft balance at time: 0, in credit
    New overdraft limit after change: NIL
    Whether this happened at an official overdraft review: No, I haven't given them reason to perform an overdraft review
    Any charges: No
    Whether you were notified: No
    Originally posted by Mr Splat
    As a student you have no regular income being paid in then.
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • countingstars
    • By countingstars 12th Apr 14, 12:23 PM
    • 91 Posts
    • 115 Thanks
    countingstars
    Had my Natwest overdraft reduced from £2000 to just £500 back in my student days with no warning. I understand that banks have the right to withdraw the overdraft at any time but surely not when you have a student account with an agreed overdraft? Luckily, I managed to switch to Barclays who were very sympathetic and matched the overdraft I had with Natwest.

    These days, even though I'm in a much better position financially, I only have a £250 overdraft with my current bank. I probably only use it once every few months (of about £50 or so) and it's paid back as soon as I get paid. I think having a smaller overdraft is the way to go because it's easier to pay back should they demand it back.
    • M-People
    • By M-People 12th Apr 14, 12:25 PM
    • 91 Posts
    • 47 Thanks
    M-People
    I had a Santander account I had not used for about 9 months. It had a £500 overdraft facility and I had left it with about 90p and not touched it since. 9 Months later, i was charged a £1 admin fee, and this pushed me a few pence overdrawn. My overdraft facility had been revoked with no warning, and I was immediately charged a £20 overdraft fee and £15 paid item fee. Three months later when I realized stuff was happening on my account that I was not using, they were demanding almost £300. This had doubled to almost £650 by the time I sorted the issue and closed my account. (I paid nothing in the end)
    Caesar si viveret, ad remum dareris
    (If Caesar were alive, you'd be chained to an oar)
    "It's good to be back"
  • savage319
    princess 2007 what was that address again with info to contact on my issue on page 9 again plz
  • Skintmummyoftwo
    RBS - thanks a bunch..
    My overdraft hasn't been cancelled completely but it's been reduced by £500 out of the blue.
    My overdraft was £2500 and as I've been trying to set up a business over the last couple of months, I've had to outlay quite a bit and wait to be paid back, so I've strayed close to the limit a couple of times.
    However, yesterday I needed to order some presents for my sons upcoming birthday, so I looked and saw that I had about £600
    left. Today I got a message telling me they couldn't complete the order as the payment had been declined. Sure enough, I check again and my overdraft has been reduced by £500!
    This despite me paying in a £1500 cheque this morning and a £1000 payment about to hit through a bacs transfer! I am raging, I have had no contact from RBS to inform me of this.
    Suffice to say someone will be getting an earful when I call them tomorrow!
    • Thrugelmir
    • By Thrugelmir 24th Jun 14, 9:35 PM
    • 55,539 Posts
    • 48,889 Thanks
    Thrugelmir
    Suffice to say someone will be getting an earful when I call them tomorrow!
    Originally posted by Skintmummyoftwo
    Are they aware that you are using a personal account for business purposes?
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • Archi Bald
    • By Archi Bald 24th Jun 14, 10:05 PM
    • 9,355 Posts
    • 7,412 Thanks
    Archi Bald
    Great plan, to give your bank an earful after you have broken the T&Cs of your account, and when overdrafts are repayable in full at any time.
  • jb7
    It may be an old Thread but it's still very valid

    Current account provider - RBOS
    Overdraft limit before change - £17,000
    Overdraft balance at time - £15,870 (but varies month to month)
    New overdraft limit after change - £0
    Whether this happened at an official overdraft review - Yes
    Any charges - Not yet
    Whether you were notified - 30 days

    Sole trader with RBOS for 10 years. Never exceeded OD limit, always paid renewal fees and interest without default.

    RBOS claim a change in their policy (which they didnt notify anyone) says my overdraft limit is too high compared to my turnover. Facility to be withdrawn in 30 days.....however they will offer me a 10 year fixed loan of £16K, total repayable £32,000 plus set up fee of £500.

    Policy change I don't think so - they just want to convert a normal creditor on their balance sheet to an Asset (which they can sell if need be) to make their books look better than they really are....just like Tesco!!

    It is true - RBOS ARE GUILTY of profiteering from forcing small business into loan debt by deliberately withdrawing overdrafts. They are still being investigated but because OD's are repayable on demand the FCA cannot prosecute - RBoS know this.

    I feel for the front line staff but the sooner they go down the better

    JR
  • DBe1974
    This has just happened to me no notice given, yesterday I had an overdraft of £500 with Nationwide and currently been receiving ESA for a few months due to illness, then no warning my forthnightly payment went in this morning and they have reduced my overdraft by the exact amount that DWP has paid into my account. The week before christmas as well! details you requested as below:

    [QUOTE=MSE Guy;21092031]We're hearing worrying stories of banks closing people's overdrafts, while they're overdrawn, without warning and sometimes adding charges because they're then in the red.

    We want to know how widespread this is, so please report your story if it's happened to you.


    Please include:[LIST][*]Current account provider Nationwide[*]Overdraft limit before change £500[*]Overdraft balance at time £494[*]New overdraft limit after change £350[*]Whether this happened at an official overdraft review no review that I was aware of[*]Any charges not aware of any as yet, although there may be charges for unpaid items that I can no longer pay as my income has been swallowed in whole by Nationwide Overdraft Limit switch[*]Whether you were notified [B]Not notified at all in advance, nothing in writing no warning of this action or any number of days notice of the change.
  • Tpow87
    now default
    A few years ago I had a Halifax overdraft that I was struggling to pay back but I did always pay some money into it. I was suddently changed to the £1 per day which gave me massive monthly charges and for a little bit at first made me over my overdraft limit which you then get £5 per day. My account was stopped and I decided to go to debt consumer credit to help me with paying my debts. They organised an agreement with Halifax to pay off monthly. Every month I was getting letter that the money was never on time and every month I was on the phone to Halifax reminding them of the agreement and it takes 3 days from consumer credits payment to reach them ( I paid consumer credit in advance) out of the blue I get a letter from cabot saying I owe them money. I called Halifax and seems that after 6mknths they automatically sell your debt on and Cabot now owns my debt. I came off the consumer credit as I felt it done me more damage and called all my debtors myself and agreed my own terms with them all. I have now paid off Cabot but as a result the Halifax and Cabot are now showing as defaults on my credit file! I'm going to fight these defaults as I have always paid on time from my side, was never informed they will just sell my
    Debt and when they did wasn't told by Halifax and worst of all this wouldn't of got this far if my overdraft wasn't changed in the first place! However I do know I shouldn't of used it either so I paid without question!
  • ironwelshman
    A few years ago I had a Halifax overdraft that I was struggling to pay back but I did always pay some money into it. I was suddently changed to the £1 per day which gave me massive monthly charges and for a little bit at first made me over my overdraft limit which you then get £5 per day. My account was stopped and I decided to go to debt consumer credit to help me with paying my debts. They organised an agreement with Halifax to pay off monthly. Every month I was getting letter that the money was never on time and every month I was on the phone to Halifax reminding them of the agreement and it takes 3 days from consumer credits payment to reach them ( I paid consumer credit in advance) out of the blue I get a letter from cabot saying I owe them money. I called Halifax and seems that after 6mknths they automatically sell your debt on and Cabot now owns my debt. I came off the consumer credit as I felt it done me more damage and called all my debtors myself and agreed my own terms with them all. I have now paid off Cabot but as a result the Halifax and Cabot are now showing as defaults on my credit file! I'm going to fight these defaults as I have always paid on time from my side, was never informed they will just sell my
    Debt and when they did wasn't told by Halifax and worst of all this wouldn't of got this far if my overdraft wasn't changed in the first place! However I do know I shouldn't of used it either so I paid without question!
    Originally posted by Tpow87
    Similar situation with myself. So glad I found this thread...
    • CatWantsToKnow
    • By CatWantsToKnow 26th Jan 17, 10:19 PM
    • 2 Posts
    • 1 Thanks
    CatWantsToKnow
    Current account provider: Barclays. I had a graduate additions account with a 2500 agreed overdraft limit. My overdraft is usually in around £1000 - £2500 region. I did receive a letter, which I didn't open until yesterday the 25th of .January, which is dated 21.October 2016, explaining they will be switching my account over to a Barclays Bank Account with Tech Pack from 13th of January 2017. I should have opened my mail, but I just assumed it's advertising and I didn't see this coming at all. I only became aware of it when I opened a more recent letter yesterday which mentioned the change had been completed. Now I'm only allowed to have a £200 overdraft for free and I get charged for anything over that up to a £1000, 75 pence a day, and over a £1000, £1.00 a day, and over £2000, £3.00 a day. At present my overdraft is £1300, but I have to move home over the next 2 weeks, which means it can easily go over £2000. I'm not happy! I went into a branch today to ask advice and about a credit card for money transfer purposes but the customer service rep blankly refused me, although I remember having plenty of letters offering me credit cards in the past. Neither did she offer me any other advice.
    Last edited by CatWantsToKnow; 26-01-2017 at 10:26 PM.
    • Missminimal
    • By Missminimal 10th Feb 17, 1:06 PM
    • 2 Posts
    • 1 Thanks
    Missminimal
    Similar to above. I have a higher OD but could not pay it back within 3 months (the notice that they gave) and so am now paying £9.50 Tech Pack Charge and £90 per month OD fees (£3 per day).
    • Thrugelmir
    • By Thrugelmir 10th Feb 17, 1:38 PM
    • 55,539 Posts
    • 48,889 Thanks
    Thrugelmir
    Similar to above. I have a higher OD but could not pay it back within 3 months (the notice that they gave) and so am now paying £9.50 Tech Pack Charge and £90 per month OD fees (£3 per day).
    Originally posted by Missminimal
    Have you asked to convert the OD into a loan?
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • CatWantsToKnow
    • By CatWantsToKnow 11th Feb 17, 2:22 PM
    • 2 Posts
    • 1 Thanks
    CatWantsToKnow
    Hi, I received another message of a single mother who also was switched like I, but had read the notifying letter she received 2 months ahead of the changes, but she had no means of paying it back; she has a £2300 overdraft and is very close to her limit. I hope she finds the help she needs to save her from further spiraling into depth. I meanwhile have moved home and in the stress that this has caused wasn't able to sort out anything out. On my way home from work yesterday, I dropped into another Barclay branch and now have booked an appointment with a private banker for Monday to discuss options. I'm not too hopeful as I'd tried that at the branch in London Stratford and they weren't helpful at all. But we'll see, the lady that I saw and that booked me the appointment in this other London branch seemed very sympathetic. I will at least get rid of the £9.00 a month insurance cover for phones and gadgets which they charge automatically although you haven't asked for it, even if you have no items that the insurance should cover registered, which I think is outrages as well. The money gets taken automatically until you cancel it.
    Regards
    Last edited by CatWantsToKnow; 11-02-2017 at 2:25 PM.
    • Biollante21
    • By Biollante21 14th Feb 17, 9:56 AM
    • 55 Posts
    • 56 Thanks
    Biollante21
    I am in the reverse situation
    I have a small overdraft (£600) with Lloyds and after receiving a nice little salary rise and am trying to pay off my debts (CC, loan etc) so i don't need the overdraft (or at least that much) so i want to at least lower it
    I have tried to apply for a smaller one through internet banking only to be told that i cannot apply for a smaller OD than i already have on IB and that i have to go into the branch
    I went into the branch only to be told that the cashier cannot do it and i have to see an account manager for a review
    As i work during the week i don't want to ask for time out of the office or book time off just to lower my OD (which i havn't used for 3 months since i got my rise)
    Months since overdraft used 5
    Get rid of credit card debt - £7900.00 (15/02/17) £7550 (23/02/17) £7250 (13/03/17) £6874 23/03/17
    Pay off Argos card by Xmas 2016 - 20/06/16 £1475.00 owed - 21/06/16 £1400.00 owed - 20/01/17 Paid off
    • Ashleighmxo
    • By Ashleighmxo 12th Oct 17, 12:23 AM
    • 1 Posts
    • 0 Thanks
    Ashleighmxo
    Hi. I am currently with Nationwide bank. My overdraft limit was originally £500 but today I noticed it's been reduced to £250. Im sitting at £479 in my overdraft so now I am well and truly over the overdraft. They never notified me at all in any way to let me know they were doing this which means I'm now left with no money for 3 and a half weeks. And then I'll be getting loads of bank charges from now not being able to pay my bills and for now being over my overdraft.
    • bigadaj
    • By bigadaj 12th Oct 17, 7:32 AM
    • 10,322 Posts
    • 6,619 Thanks
    bigadaj
    Hi. I am currently with Nationwide bank. My overdraft limit was originally £500 but today I noticed it's been reduced to £250. Im sitting at £479 in my overdraft so now I am well and truly over the overdraft. They never notified me at all in any way to let me know they were doing this which means I'm now left with no money for 3 and a half weeks. And then I'll be getting loads of bank charges from now not being able to pay my bills and for now being over my overdraft.
    Originally posted by Ashleighmxo
    If they really haven't notified you then it's unreasonable for them to withdraw a facility which you were using at the time.

    Ring them up and say you want to make a formal complaint, and they will hopefully come to an agreement with you. It's not actually illegal in that overdrafts are generally repayable on demand but they should come to a better solution.

    Has anything changed in your circumstances to provoke this?
    • phillw
    • By phillw 12th Oct 17, 8:01 AM
    • 844 Posts
    • 463 Thanks
    phillw
    I will at least get rid of the £9.00 a month insurance cover for phones and gadgets which they charge automatically although you haven't asked for it, even if you have no items that the insurance should cover registered, which I think is outrages as well. The money gets taken automatically until you cancel it.
    Originally posted by CatWantsToKnow
    If you never asked for it then you should ask for it to be refunded. My guess is they asked you if you wanted it in a vague way that you didn't pick up on and agreed.
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