Banks cancelling overdrafts

Paul_Herring

BarclaysManager wrote: »

In my 5 years with the bank I've not a single blemish on my accounts. In the last 12 months I feel I've been 'blacklisted' from the bank.

Wait, if you haven't had a single blemish on your account, how can you possibly have any charges to reclaim?

Well reading between the lines there, they started a claim a year ago, which means at the time they had 4 blemish free years, leaving (6 year limit - 4 years) 2 years they weren't at the bank to rack up charges

kar999

I haven't used my £3k overdraft facility with Lloyds for over 10 years and they wrote and told me that unless I replied they would automatically withdraw it.

I dont intent to use it, but I replied requesting it be left as a facility on my account should I need it. Who knows, in these times if I get made redundant it might be useful.

This is the first time I have ever had such correspondence from them.

They have subsequently left my facility intact.

I'm not overly familiar with statutory bank accounting rules but I assume overdraft "facilities", even unused, have to be accounted for as "potential" balance sheet liabilities and in todays climate banks are desperate to reduce debts and liabilities, toxic or otherwise.

ShelfStacker_3

kar999 wrote: »

I'm not overly familiar with statutory bank accounting rules but I assume overdraft "facilities", even unused, have to be accounted for as "potential" balance sheet liabilities and in todays climate banks are desperate to reduce debts and liabilities, toxic or otherwise.

Precisely. They have to keep capital on hand for every facility they grant, whether it's used or not. Hence why banks are now not so keen to have people with £10k overdraft limits that they never use.

I_know_my_ABC_and_my_CMYK

This not a good site anymore to ask about debt, cca agreements, sarn or dmp's. You would be better going here https://www.consumeractiongroup.co.uk you will get nothing but abuse on here.

Caroline84

It really annoys me when people don't understand how students live, especially in London! Yes some do go crazy with money and fill up overdrafts to ridiculous levels but people like myself, who are very conscious of their money, receive full student loans and live in London still end up going into the overdrafts. It is only now, 2nd year out of degree that I am starting to (not often) enter the bright side of credit land!

No, overdrafts are not long term escapades of free money but I think people should understand that people do not like being in their overdrafts - it is unavoidable in most cases considering the cost of living etc etc etc. Do not judge before you have actually been a student, unemployed or have been made redundant in the awful climate we are in today.....

PROLIANT

I_know_my_ABC_and_my_CMYK wrote: »

This not a good site anymore to ask about debt, cca agreements, sarn or dmp's. You would be better going here www.consumeractiongroup.co.uk you will get nothing but abuse on here.

Then go, take your CAG cronies off this site with you, close the door behind you on your way out.

wiggly

sorry deleted cos I just can't be bothered.

pedro123456

Hands up all those who took out overdraft facilities who were "actually told" that the said overdraft "was intended for short term use" as Shelf Stacker appears to imply.

Hands up who all who.....were "actually told" that.....the overdraft was "legally noted as being repayable on demand at any time"........again as implied by shelfstacker.

If you wern't "actually told" these two things you cant put your hands up.......

IF, HOWEVER.
THESE THING WERE USED AS LEGALLY ACCEPTABLE REASONS OR JUSTIFICATION FOR THE BANK TO PILE ON MORE CHARGES BY THE BANK IN ORDER TO PAY LARGE SALARIES ETC TO SOME (not all ) BANK STAFF...... PLEASE SAY..............the banks have for too long had to much say and power over individuals ppl.

ps.....shelfstacker.......how come you work for a bank...dint know they employed shelfstackers!!

Ta Pete

b3nton

inmypocketnottheirs wrote: »

I'll have a guess as to the answer - 'ere's todo labia' (more or less translates to you're all mouth).

I thought it translated to something else!

earthcaroleanne

sluggy1967 wrote: »

I find posts like "only have yourselves to blame" patronising and unnecessary on a forum such as this. Rising fuel costs, petrol prices that went crazy a few months ago (and are creeping right back up), huge rises in staple goods (have you not noticed how much bread and potatoes cost now?) all mean that people on a small, fixed income are really struggling - better to use an overdraft than credit cards. If you have been fortunate enough to not need your overdraft, well bully for you, some people dont have that luxury, no matter HOW MUCH they cut their cloth.....

Got to say I really agree with you Sluggy. I have had an overdraft facility on my account since opening it but have never used it until January. By April I was at my maximum and had to put my food, bus ticket and petrol on my credit card. I am struggling to get by day to day and find myself in a vicous circle because I now have increased credit card charges as I can't pay off the balance in full. I can't work out where else I can save money. I travel to work by bus because I can't afford the train but I now commute more than 3 hours a day and I can't do overtime (not that there is any at the moment) because my last bus home is 6.15pm. I don't see any light at the end of the tunnel at the moment, in fact I think things are just going to get worse and if I had to clear my overdraft within 7 days, I think that would just be the last straw!