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    • buttonmoon
    • By buttonmoon 19th Jun 17, 8:55 PM
    • 105Posts
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    buttonmoon
    Nationwide reduced overdraft
    • #1
    • 19th Jun 17, 8:55 PM
    Nationwide reduced overdraft 19th Jun 17 at 8:55 PM
    Am a bit hacked off as I switched from Barclays to Nationwide on Feb. I opened a flex direct account with an interest free overdraft for 12 months as part of the deal. I have just received a letter reducing my overdraft from £2,750 to £2,000 on the basis of my credit scoring. The letter also states I will be charged 50p per day I use my overdraft (whereas I signed up to an overdraft with no charges for 12 months). I haven't gone over my overdraft limit, or missed any bill payments. I checked my middle credit file and the only thing which stands out is that there have been a number of credit searches as I have been looking for car insurance. I know banks can recall overdrafts at any time, but I am peeved as I have never had the done before!

    I also overpay my Nationwide mortgage by £200 a month as well!

    Tried to call the number on the letter and it was for collections but it was closed!
Page 1
    • oldfella
    • By oldfella 19th Jun 17, 10:25 PM
    • 1,492 Posts
    • 568 Thanks
    oldfella
    • #2
    • 19th Jun 17, 10:25 PM
    • #2
    • 19th Jun 17, 10:25 PM
    I would take the original offer letter to the Bank to show the manager and ask him to explain why they have unilaterally changed the terms
    • YorkshireBoy
    • By YorkshireBoy 19th Jun 17, 11:36 PM
    • 29,305 Posts
    • 17,076 Thanks
    YorkshireBoy
    • #3
    • 19th Jun 17, 11:36 PM
    • #3
    • 19th Jun 17, 11:36 PM
    I checked my middle credit file
    Originally posted by buttonmoon
    I assume that's a typo and you meant Noddle? If so, check Experian and Equifax.
    and the only thing which stands out is that there have been a number of credit searches as I have been looking for car insurance.
    It might "stand out" to you, but it won't stand out to them as they won't be able to see them, being as they're not "credit searches" but ID searches, and are classed as unrecorded enquiries...unless of course you were intending to pay for it in instalments?.
    I also overpay my Nationwide mortgage by £200 a month as well!
    You say you've not gone over your overdraft limit, with the obvious inference that you've used some of the facility (and why wouldn't you...it's 0% interest)? So what you've been doing is overpaying your mortgage with their money...not your own?
    • longleggedhair
    • By longleggedhair 19th Jun 17, 11:57 PM
    • 225 Posts
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    longleggedhair
    • #4
    • 19th Jun 17, 11:57 PM
    • #4
    • 19th Jun 17, 11:57 PM
    I banked with them some years ago, they cut my overdraft in half, the same as you say there was no good reason. I felt that it was a breach of trust so voted with my feet and left.

    My partner has had the same issue also and switched to TSB last month. They are much better, I've been with them for some years. Nationwide is a waste of time, and treat their "members " like cattle. I'd jump ship.
    • buttonmoon
    • By buttonmoon 20th Jun 17, 10:11 AM
    • 105 Posts
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    buttonmoon
    • #5
    • 20th Jun 17, 10:11 AM
    • #5
    • 20th Jun 17, 10:11 AM
    I'm going to ring them up later as there are no free meeting rooms at work at the moment. I quite often run up lots of expenses at work so it is handy to have a 0% overdraft. Im due to get £400 expenses tomorrow paid in.
    • eskbanker
    • By eskbanker 20th Jun 17, 10:17 AM
    • 5,257 Posts
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    eskbanker
    • #6
    • 20th Jun 17, 10:17 AM
    • #6
    • 20th Jun 17, 10:17 AM
    I quite often run up lots of expenses at work so it is handy to have a 0% overdraft. Im due to get £400 expenses tomorrow paid in.
    Originally posted by buttonmoon
    Many use a credit card rather than an overdraft to handle any such cashflow issues from employment expenses reimbursed in arrears, is that an option for you?
    • PeacefulWaters
    • By PeacefulWaters 20th Jun 17, 11:12 AM
    • 6,677 Posts
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    PeacefulWaters
    • #7
    • 20th Jun 17, 11:12 AM
    • #7
    • 20th Jun 17, 11:12 AM
    My guess is that the reference to 50p a day charging is a standard letter that hasn't been personalised for your 12 month introductory period.
    • buttonmoon
    • By buttonmoon 20th Jun 17, 1:01 PM
    • 105 Posts
    • 56 Thanks
    buttonmoon
    • #8
    • 20th Jun 17, 1:01 PM
    • #8
    • 20th Jun 17, 1:01 PM
    Rang up Nationwide and they confirmed it was a standard letter and that I would continue to offer a fee free overdraft for 12 month. However, the only explaination they could offer that was that I had maybe used my overdraft too often and that they computer automatically reviews accounts every 6 months.

    I think this is something to bear in mind when switching is that Nationwide arbitrarily like to review accounts every 6 months. Whereas, Barclays (who I used to bank with) didn't normally (IME) review overdraft limits unless you broke the terms of my overdraft (which I never did)
    • Flobberchops
    • By Flobberchops 20th Jun 17, 6:43 PM
    • 537 Posts
    • 372 Thanks
    Flobberchops
    • #9
    • 20th Jun 17, 6:43 PM
    • #9
    • 20th Jun 17, 6:43 PM
    Whereas, Barclays (who I used to bank with) didn't normally (IME) review overdraft limits unless you broke the terms of my overdraft (which I never did)
    Originally posted by buttonmoon
    Barclays now review overdraft facilities annually, so to be fair this could be becoming an industry standard,
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • ceredigion
    • By ceredigion 20th Jun 17, 6:48 PM
    • 2,252 Posts
    • 2,671 Thanks
    ceredigion
    Rang up Nationwide and they confirmed it was a standard letter and that I would continue to offer a fee free overdraft for 12 month. However, the only explaination they could offer that was that I had maybe used my overdraft too often and that they computer automatically reviews accounts every 6 months.

    I think this is something to bear in mind when switching is that Nationwide arbitrarily like to review accounts every 6 months. Whereas, Barclays (who I used to bank with) didn't normally (IME) review overdraft limits unless you broke the terms of my overdraft (which I never did)
    Originally posted by buttonmoon


    I appreciate different people have different experience's, but I stoozed my entire Nationwide overdraft for 50 weeks in that time the account saw no activity what so ever. They did an unrecorded search on me at some point according to the credit reference agencies . But this did not result in the stroppy letter that I was expecting.
    • YorkshireBoy
    • By YorkshireBoy 20th Jun 17, 10:48 PM
    • 29,305 Posts
    • 17,076 Thanks
    YorkshireBoy
    I appreciate different people have different experience's, but I stoozed my entire Nationwide overdraft for 50 weeks in that time the account saw no activity what so ever. They did an unrecorded search on me at some point according to the credit reference agencies . But this did not result in the stroppy letter that I was expecting.
    Originally posted by ceredigion
    My experience too (not sure about the CRA search, but I assumed all banks/BSs providing current accounts took a monthly feed so no need for a separate search?), except I had 3 of them, and all maxed out to -£2.5K. One ran for the year, and the other two were cut short 10 months in like many of us on here experienced. It was 2-3 years ago though, so maybe they've tightened up since.
    • BBH123
    • By BBH123 21st Jun 17, 10:42 AM
    • 363 Posts
    • 493 Thanks
    BBH123
    Can a bank do an unauthorised by you credit search as this may affect any future borrowing you may want to do,

    perhaps authority is burried in the small print somewhere
    • Heng Leng
    • By Heng Leng 21st Jun 17, 2:39 PM
    • 4,035 Posts
    • 1,234 Thanks
    Heng Leng
    Can a bank do an unauthorised by you credit search as this may affect any future borrowing you may want to do,

    perhaps authority is buried in the small print somewhere
    Originally posted by BBH123
    Yes, they can run credit checks, as others have said they get a monthly update from the various credit agencies so it usually isn't necessary.

    It's only a small reduction in the limit amount, so I wouldn't personally be concerned, they will be expecting you to reduce it over time.

    If you have expenses then you really need either a card from your employer or a credit card yourself. Using an overdraft isn't a long term fix.
    • dunstonh
    • By dunstonh 21st Jun 17, 3:06 PM
    • 88,748 Posts
    • 54,078 Thanks
    dunstonh
    Most banks review an overdraft facility nowadays. It can be reduced if you dont use it enough too.

    Also, when a bank says that is down to credit scoring, don't assume that is similar to looking on noddle. The bank will have its own criteria and systems and credit score internally without running an external check.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • buttonmoon
    • By buttonmoon 22nd Jun 17, 4:25 PM
    • 105 Posts
    • 56 Thanks
    buttonmoon
    I'm only using the overdraft, as it was fee free overdraft for 12 months as it was offered as one on the advertised benefits of the account otherwise I would have got used a 0% credit card. Credit card companies can also reduce limits at any time the want to as well.
    • YorkshireBoy
    • By YorkshireBoy 22nd Jun 17, 6:51 PM
    • 29,305 Posts
    • 17,076 Thanks
    YorkshireBoy
    I'm only using the overdraft, as it was fee free overdraft for 12 months as it was offered as one on the advertised benefits of the account otherwise I would have got used a 0% credit card. Credit card companies can also reduce limits at any time the want to as well.
    Originally posted by buttonmoon
    True. But what they cannot do* is call in any debt for immediate repayment on demand like banks can, and do, with current account overdrafts.


    * Except under certain circumstances, typically if you commit fraud, if you repeatedly breach the T&Cs, or if you die!
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