Bank cancelled my business overdraft by mistake now they want me to reapply!?!

Julesiep

My business account overdraft has been cancelled apparently following a meeting I had with them. This never happened. Head office say they received a memo from my branch asking for it to be cancelled. My branch have no idea about this. Anyway they have asked me to reapply for my overdraft in the mean time this leaves me with an unagreed debt and the risk that they could now turn me down for a new overdraft. I didn't ask to have the overdraft cancelled therefore it is their error so can they make me reapply for it. Also can they cancel an overdraft when you are in it? Any help make appreciated.

Extant

They can cancel your overdraft at any time, and demand repayment in full at any time, too - read the terms on your account.

Robert_Sterling_3

BarclaysManager wrote: »

They can cancel your overdraft at any time, and demand repayment in full at any time, too - read the terms on your account.

Although they CAN they should not have done so in this case. It appears they made an error. They should now be repairing the damage. Whatever happened to customer care.

You should in this instance be ashamed to be a BarclaysManager ... I would.

Extant

Robert_Sterling wrote: »

Although they CAN they should not have done so in this case. It appears they made an error. They should now be repairing the damage. Whatever happened to customer care.

You should in this instance be ashamed to be a BarclaysManager ... I would.

And why exactly have you decided that? The original post didn't say it was Barclays, but what it did do was ask a simple question:

Julesiep wrote: »

Also can they cancel an overdraft when you are in it?

A question which I answered, without any specific comment or endorsement of the act. You're being a little... reactionary, don't you think?

bitterSTAR

Robert_Sterling wrote: »

Although they CAN they should not have done so in this case. It appears they made an error. They should now be repairing the damage. Whatever happened to customer care.

You should in this instance be ashamed to be a BarclaysManager ... I would.

He was just stating the terms and conditions that all banks have, and the fact that having an overdraft or any credit facility is not a right - it's a privilege.

You applying for the overdraft might be the only way to set an overdraft up in branch. If bank staff had the ability to give anyone an overdraft without going through the application process willy-nilly, I would think the banks would be in a worse off state than they are now.

rb10

It may be worth contacting Customer Relations or Complaints, whatever they call themselves. Although the bank is entitled to recall the overdraft and demand repayment immediately, if it was indeed an error on their part then you should not be disadvantaged over that. Raise it as a complaint, that way they may be able to reinstate it.

Just remember that they have no obligation to, they don't have to let you have an overdraft.