Lloyds TSB Overdraft - they cancelled it without telling me

ninnypants

Im a good banker - no credit cards, loans, CCJs etc. Only an overdraft of £1100 that I pay back £200 every month without fail.

so why on earth have my bank, Lloyds TSB decided yesterday to cancel my overdraft leaving me pennyless?!?!?! I have about £3 in my purse.


I called them at 8am and was on phone for almost an hour - kept beign put on hold and asked "when is your overdraft up for review?" they thought it had been reviewed and cancelled but Ive only had a few months and its a 12 month overdraft. managers were talking to mangers and all they could do was log my issue with some department that investigate retractions etc and they would write to me in 5 working days!!!!! So much for customer service. For all they know, I could have been a single parent with a baby to look after! And luckily my rent came out teh other day!

they cant even guarentee that i'll get my overdraft back (Im now £780 in debt!). they couldnt offer me another overdraft or short term loan.

i was sickened by this. Luckily i have a partner who can buy food etc until its sorted, but we still have bills coming out that are now going to bounce.

i called up last week to reduce my overdraft by £200 and that was done - but something has happened yesterday (I check my account every other day) and they clearly dont know what has happened.

So, im now leaving lloyds and joined natwest, who were amazingly helpful - yes they want the busniess but were very kind to a very stressed me.

Has anyone else had overdrafts just taken away like that?

WhySoHard_2

Your post is very confusing and all over the place. So you called up last week to reduce your overdraft limit by £200? Or to pay £200 off the overdraft? Did they perhaps cancel your entire OD limit then, in error? Why are you relying so heavily on your OD that you are penniless without it? Were you constantly overdrawn? Do you have an income? How often was your account in credit?

WhySoHard_2

Also, if you've successfully opened an account now with Natwest, haven't they offered you an OD limit?

ninnypants

thanks to a large purchase a couple months ago Im now living in my overdraft at the moment but aim is to be o/d clear by January via regular payments. I was always in credit - never used to have an o/d at all!

natwest have offered me an o/d but the account might take a few days to set up. so until them Im skint.

when I reduced my o/d by £200 last week they did that - i used my card over the weekend with no bother and also again on sunday. It seems to have happened yesterday, Monday, as I didnt check my account or use my card.

i did have savings but paid towards getting rid of overdraft - I was always told to get rid of debts before savings, as you pay interest etc etc. And yes I have a regular income.

im just wondering if anyone else has had a similar experience.

and yes sorry, my posts are all over the place, Im poo at posting hehe.

WhySoHard_2

ninnypants wrote: »

thanks to a large purchase a couple months ago Im now living in my overdraft at the moment but aim is to be o/d clear by January via regular payments. I was always in credit - never used to have an o/d at all!

natwest have offered me an o/d but the account might take a few days to set up. so until them Im skint.

when I reduced my o/d by £200 last week they did that - i used my card over the weekend with no bother and also again on sunday. It seems to have happened yesterday, Monday, as I didnt check my account or use my card.

i did have savings but paid towards getting rid of overdraft - I was always told to get rid of debts before savings, as you pay interest etc etc. And yes I have a regular income.

im just wondering if anyone else has had a similar experience.

and yes sorry, my posts are all over the place, Im poo at posting hehe.

It may have been an error on the bank's part then because normally they'd write to you to inform you they were cancelling your OD. although a letter might be in the post?

Since you have your partner to help you out plus NatWorst have given you an OD that is presumably as high as the one you had with LTSB, then it seems you will be fine.

ninnypants

im sure it will be but puts me in a bad place for next week or so until new account is functioning.

then I have to sort out all bounced bills etc. grrrrr.

anyone else had this probelm?

simone2109

I have had exactly the same problem.

I have a planned overdraft with Lloyds which is up for review in March.

I redeuced my overdraft last week and was able to use my card for a few days, I was then told that my account was in collections and that my overdraft was cancelled by the branch! I obviously went into my bank IRRATE! They then said we have not cancelled anything and it looks like when it has been reduced an incorrect button was pressed hence deleting your overdraft. SORRY THERE IS NOTHING WE CAN DO!

I have spoke to collections who say as they believe the bank has cancelled it I need to start repaying it, fair enough. They said they would re open the account and re fund charges and that from now i had to leave money in for them to take evry month!

THIS WAS 5 DAYS SINCE. NO MONEY HAS BEEN REFUNDED MY ACC BALANCE IS ZERO AND I AM A SINGLE MUM WHOS NURSERY FEES GO INTO THIS ACC.

I have NEVER gone over my overdraft. I have NEVER had any charges and all the bank will say is SORRY IT LOOKS LIKE OUR MISTAKE CAN NOT DO ANYTHING. I was literally in tears in the bank today!

What can I do? Where do I go from here? It feels like my only option is to sit in the branch and wait until someone does something.

Extant

Pretty much everything bank has the same thing in their overdraft terms and conditions:

1) We can cancel it whenever we like and we don't have to tell you;
2) We can tell you to repay it whenever we like.

Overdrafts are an agreed facility offered by a bank and are certainly not a right. They should, under no circumstances, be "lived in", they should be for emergencies, and dipped into occasionally. And, more importantly, they should never, ever be thought of as permanent.