Advice on my graduate overdraft reduction

nementai

I've had a student account with Abbey that turned into a graduate account about 2 years ago. This has a free, £1000 overdraft on it that I've been paying off at the minimum rate each month for 2 years.
I also have a regular current account with a chargeable overdraft with Abbey, that I use as my regular account (wages and bills here).
Last year, I phoned to check the date the free overdraft would close / reduce and was told it would remain as it was until June 09. I asked if I could have a letter to confirm this, but was told it was a fixed term on their system and no changes could be made (foolishly, I belived this).
I recently decided to use the £800 odd I had payed off to this account to take my 'normal' account into the black, with an aim to pay the free overdraft off again over the next year (easily affordable now).
So, My balances currently stand at -£1000 in the free graduate account and +£50 in my regular account.
I got a letter last week, saying that at the end of August, my free overdraft limit would reduce to £500 - no explanation included.
I called and they said that due to the credit crunch, they were encouraging their customers to reduce their debts (my @rse, don't even get me started on this bit!) and that I would have to reapply for the free overdraft in branch if I wanted it.
My feeling is that since I was told at opening the account, and last year, that the OD would remain till next June, they surely can't just cut it in half like that. Can they? I feel really narked about having to reapply for credit I was offered for a set period in the first place. I can get the £500, but it'll come from my interest paying overdraft...
What do other people think?

mrposhman

Their terms and conditions of the graduate account seem to suggest that what they have done is policy though the £500 should still be available to you.

If you have graduated the following Advance overdraft rates and allowances will apply





[FONT=Arial, Helvetica]Year 1 allowance up to £2,000***[/FONT]
[FONT=Arial, Helvetica]0% EAR**[/FONT]
[FONT=Arial, Helvetica]Year 2 allowance up to £1,000***[/FONT]
[FONT=Arial, Helvetica]0% EAR**[/FONT]
[FONT=Arial, Helvetica]Year 3 allowance up to £500***[/FONT]
[FONT=Arial, Helvetica]0% EAR**[/FONT]
[FONT=Arial, Helvetica][FONT=Arial, Helvetica]Advance overdraft agreed above the allowance[/FONT][/FONT]
[FONT=Arial, Helvetica]9.9% EAR (variable)**[/FONT]

nementai

That's fair enough, but not really what I was told. I've now based my debt managment around having the money free of charge, and I'm upset it being taken away, when I've worked so hard to pay all these debts off.
Would anyone rate my chances of getting the full £1000 back for free? I can't believe it'll be very likely.