Has your overdraft been cancelled?

Thrugelmir

R.Deringer wrote: »

After 5 years of not using OD had couple of rough months and bank decides to cut it's 'helping hand'.

Banks are required to keep "capital reserves" against overdraft facilities. So if facilities are not used then banks are within their rights to withdraw them.

R.Deringer

Thanks. Altho facility was being used at the time... for a month or two before it was cancelled.

After restoring overdraft last week I have received a letter telling me that my overdraft will be cancelled again on the 2nd of January.

Thinking about getting an account in another bank.

giokev2325

My over draft has been reduced from £2,000 to £1050
Please kindly not I received the letter on the 2nd june 2012 the letter was dated 26th May.
This is the reason they gave in the letter to me:- Having reviewed your account we'll be reducing your overdraft limit because your credit score did not reach the level required to enable us to renew your facility. When we review overdrafts we use a method os assessment known as credit scoring. This provides `an overall score by taking into account how you're using your flexaccount, as well as other nationwide accounts. Credit scoring allows us to review each overdraft on an impartial and objective basis. Our credit scoring system incorporates many years experience of reviewing overdrafts and helps protect us and our members from over commitment.
Agreed overdraft £1050
interest rate (variable) 1.45% per month
equivalent annual rate 18.90%
your new facility will start 17th June

It does not give me much time to find funds to clear the remainder especially with many bank holidays and the offices being closed kind regards Kevin

kw7545

R.Deringer wrote: »

Santander. OD went down from £500 to none with no given notice. Noticed that OD was removed when checked summary of transactions, there were three overdraft fees for £25 each. One phonecall to their support and got fees removed and OD restored.

After 5 years of not using OD had couple of rough months and bank decides to cut it's 'helping hand'. Each of reds was repaid at the end of month.

All this makes me think that whole OD deal is just to get more customers with no real intention of giving them 'emergency' resources to use.

Overdrafts are a complete con. Halifax are the absolute worst for putting customers into financial difficulty using this facility and do not give a damn about demanding full repayment within two weeks when it's clear it can't be paid in this time. My advice...never ever use an overdraft...and avoid the Halifax at all costs! their branch advisors have no control over any sort of borrowing either and just send you away. It could save you a nightmare situation and probably lots of money! This is from someone with an excellent credit history and who has never missed payments etc, it really can happen to anyone.

Lin16

I am shocked to see this subject goes back to2009.It happened to me mid December 2012.
I had a period out of work having been made redundant, I did as all the press tells you, I spoke to the bank but they were not too much help. The did eventually stop adding more charges. I was back in work after just a few weeks. Then at the beginning of November I had a letter advising they were going to review my overdraft that I have had for the past 10 years. The review date was 29th Nov, as soon as I got the letter I called the Halifax to ask if they could change the review date to 30th Nov as that was the day my salary would be going in. The person on the phone advised me that there was not going to be a problem and that my overdraft would carry on as before, there would be no change. The next thing I knew was when I got an email from my mobile phone provider saying that the direct debit had been returned. When I checked the overdraft was gone. I spent my lunch hour on the phone trying to sort this out to then be told that I was miss informed and my overdraft had been withdrawn and would not be replaced. They paid me £25 as some one had miss informed me and £10 for cost which they would still be charging me as now I was using an unauthorised overdraft. To this day I have never had a letter from Halifax to say they were withdrawing the overdraft. I am now in the process of moving my bank account and will look onto moving my mortgage from Halifax too. Wouldn't recommend anyone to use them after my experience.

cool4door64

Best bank in europe but that must exclude the UK :mad:

Basically I, like everyone at the moment have been on a financial roller coaster but I am determined to pay off my debts and never bother with credit again. But Santander have just sent me off the rails.

I was unhappy with natwest so moved to santander they matched my overdraft of £3500 so I used this to pay off natwest effectively moving my bank account and debts to a 0% arrangement to pay off. Upon this being successful, which took over 3 months due to Santander staff not knowing what information they should be giving customers. I had to fight for it eventually won. I then asked if I could reduce my overdraft by £100 a month to repay it, 'Sorry cant do that I am afraid, just leave a bit of extra money int he account every month.' Yes cos with 3 kids and a partner out of work that will work wont it:eek: to make matters worse my car died on me and I had no choice but to use some of the overdraft I had paid off to natwest to buy a car so now I owe them more aswell

Anyway cut a long story short we moved house in July 2012, upon moving I asked the bank to change my address over the phone which apparently you cant do - note this statement.

Anyway I forgot to change my address i have been very busy and forgot anyway I went to use my debit card friday and its declined 3 times I had checked previously that the account had money in and it did. Cash machine didnt work either rang santander on saturday and spent two hours on the phone cos the person on the other end couldnt understand me and wasn't even sure what she was doing.

So heres what they told me;

Letter were sent to my previous address and returned and they removed my overdraft and told me I have to go elsewhere as they will be closing my account and went through a budget and said it appears I could afford £50 a month so they will take that for 3 months and review after that but I will have to arrange my banking with someone else.

I know I should of changed my address with them but I have had alot of problems since moving into the house including illness, depression, and just before christmas I broke up with my partner so now I am worried I will lose the house, I have been trying to get debt free for ages but then something like this happens :mad:

So today I have to search for a new bank account, I am thinking of consulting an advisor and see about a dmp, the stupid thing is I have a pretty good credit report and I cant even get a credit card or loan to shift the debt to a more affordable monthly payment all I want to do is ensure that when my partner leaves I can afford to keep the house I just plower over £16k of everything I own into it to make a better life for her and her two children and the one child we have together.

I rang santander today and basically they have said the same thing overdraft removed go elsewhere :mad::(

2013 so far is proving a very unlucky year, I am under no illusion that the money was not mine but unlike alot of people I dont have any parental figures I can ask for help, so everytime I have need something I have used savings or credit - but I am determined to make my life debt free

cool4door64

Rang today the woman I spoke to today was very helpful she has re-instated my account provided that I pay off my overdraft at £200 a month I am going to sell everything I own to hopefully save me from losing the house when my partners goes if i can pay it off before then I will be able to keep my house fingers crossed and praying :A

mwelford

I am in the middle of trying to get my overdarft back just now. I looked at my online banking on friday and noticed that my balance was in a - and thought there was maybe just a mistake with the online banking. I have a 1600 overdraft from my student days that i have never been able to clear and am alwayd in mid month. Can i also point out i pay for this £20 per month. I am with santander, phoned them yesterday and they told me to go into the branch and appeal it and get notified within 48 hours. I have not received any letters from them saying they would be doing this so i am totally panicking and stressed out. I added on my husband to my account and i think they have madr a mistake in removing it when adding him on. I will post when they get back to me.

RoseyGem

Hello Everyone,

I'm having some major problems with HSBC and their 'Informal Overdraft limit' bank chargers at the minute.

Since 2013 every time I go lower than £0.00 I get an automatic £25.00 charge for the following month including an 18p debt charge.
They are classing this as an 'Informal Overdraft limit'.

Researching this I found an informal overdraft limit is when you go over your agreed overdraft limit or if you haven't got one.

Since joining HSBC 4 years ago this has never happened leading me to believe I have a £50.00 over draft limit.

So why now? I've never been in my overdraft by a massive amount (£30 tops) so i'm totally confused as to why every time I go below £0.00 I am being charged when last year no chargers happened.

I have a meeting with HSBC tomorrow to find out why. If I find out they have terminated my overdraft limit then I am going to claim all the chargers back from this year.

Surely they can't just take your overdraft limit away without notice?

Archi_Bald

RoseyGem wrote: »

Surely they can't just take your overdraft limit away without notice?

Looking at their T&Cs, they have to give you notice in writing if they withdraw a formal overdraft

3.11. Unless we have agreed other terms with you
in writing, we may at any time end or reduce your
overdraft and demand in writing that you pay any
money you owe us immediately

Seems you may not have any formal overdraft, however, so you need to look up what exactly they say about informal ones. There is lots more about overdrafts in their T&Cs.

As a general rule, no bank or BS is obliged to offer you an overdraft. If they do so, they are allowed to do it under their own T&Cs.