Has your overdraft been cancelled?

Thrugelmir

Mr_Splat wrote: »

Just to let people know who may be interested that what can only be attributed by the co-op's current financial mess that they cancelled my overdraft on my student account without notice. I only realised 3 weeks after it had supposedly been cancelled. I have had to pay a deposit on a house for university next year, I paid to go and visit a relative in France and I'm currently going through the motions of taking a car dealer to a small claims court, this left me thinking I would just have to dip into my overdraft until I get paid at the end of the month however I then found out to my detriment that my overdraft limit has been reduced from £1400 to nil, without myself being notified.

Current account provider: Cooperative Bank
Overdraft limit before change: £1400
Overdraft balance at time: 0, in credit
New overdraft limit after change: NIL
Whether this happened at an official overdraft review: No, I haven't given them reason to perform an overdraft review
Any charges: No
Whether you were notified: No

As a student you have no regular income being paid in then.

countingstars

Had my Natwest overdraft reduced from £2000 to just £500 back in my student days with no warning. I understand that banks have the right to withdraw the overdraft at any time but surely not when you have a student account with an agreed overdraft? Luckily, I managed to switch to Barclays who were very sympathetic and matched the overdraft I had with Natwest.

These days, even though I'm in a much better position financially, I only have a £250 overdraft with my current bank. I probably only use it once every few months (of about £50 or so) and it's paid back as soon as I get paid. I think having a smaller overdraft is the way to go because it's easier to pay back should they demand it back.

M-People

I had a Santander account I had not used for about 9 months. It had a £500 overdraft facility and I had left it with about 90p and not touched it since. 9 Months later, i was charged a £1 admin fee, and this pushed me a few pence overdrawn. My overdraft facility had been revoked with no warning, and I was immediately charged a £20 overdraft fee and £15 paid item fee. Three months later when I realized stuff was happening on my account that I was not using, they were demanding almost £300. This had doubled to almost £650 by the time I sorted the issue and closed my account. (I paid nothing in the end)

savage319

princess 2007 what was that address again with info to contact on my issue on page 9 again plz

Skintmummyoftwo

My overdraft hasn't been cancelled completely but it's been reduced by £500 out of the blue.
My overdraft was £2500 and as I've been trying to set up a business over the last couple of months, I've had to outlay quite a bit and wait to be paid back, so I've strayed close to the limit a couple of times.
However, yesterday I needed to order some presents for my sons upcoming birthday, so I looked and saw that I had about £600
left. Today I got a message telling me they couldn't complete the order as the payment had been declined. Sure enough, I check again and my overdraft has been reduced by £500!
This despite me paying in a £1500 cheque this morning and a £1000 payment about to hit through a bacs transfer! I am raging, I have had no contact from RBS to inform me of this.
Suffice to say someone will be getting an earful when I call them tomorrow!:mad:

Thrugelmir

Skintmummyoftwo wrote: »

Suffice to say someone will be getting an earful when I call them tomorrow!:mad:

Are they aware that you are using a personal account for business purposes?

Archi_Bald

Great plan, to give your bank an earful after you have broken the T&Cs of your account, and when overdrafts are repayable in full at any time.

jb7

It may be an old Thread but it's still very valid

Current account provider - RBOS
Overdraft limit before change - £17,000
Overdraft balance at time - £15,870 (but varies month to month)
New overdraft limit after change - £0
Whether this happened at an official overdraft review - Yes
Any charges - Not yet
Whether you were notified - 30 days

Sole trader with RBOS for 10 years. Never exceeded OD limit, always paid renewal fees and interest without default.

RBOS claim a change in their policy (which they didnt notify anyone) says my overdraft limit is too high compared to my turnover. Facility to be withdrawn in 30 days.....however they will offer me a 10 year fixed loan of £16K, total repayable £32,000 plus set up fee of £500.

Policy change I don't think so - they just want to convert a normal creditor on their balance sheet to an Asset (which they can sell if need be) to make their books look better than they really are....just like Tesco!!

It is true - RBOS ARE GUILTY of profiteering from forcing small business into loan debt by deliberately withdrawing overdrafts. They are still being investigated but because OD's are repayable on demand the FCA cannot prosecute - RBoS know this.

I feel for the front line staff but the sooner they go down the better

JR

DBe1974

This has just happened to me no notice given, yesterday I had an overdraft of £500 with Nationwide and currently been receiving ESA for a few months due to illness, then no warning my forthnightly payment went in this morning and they have reduced my overdraft by the exact amount that DWP has paid into my account. The week before christmas as well! details you requested as below:

MSE_Guy wrote: »

We're hearing worrying stories of banks closing people's overdrafts, while they're overdrawn, without warning and sometimes adding charges because they're then in the red.

We want to know how widespread this is, so please report your story if it's happened to you.


Please include:

• Current account provider Nationwide
• Overdraft limit before change £500
• Overdraft balance at time £494
• New overdraft limit after change £350
• Whether this happened at an official overdraft review no review that I was aware of
• Any charges not aware of any as yet, although there may be charges for unpaid items that I can no longer pay as my income has been swallowed in whole by Nationwide Overdraft Limit switch
  
• Whether you were notified Not notified at all in advance, nothing in writing no warning of this action or any number of days notice of the change.

Tpow87

A few years ago I had a Halifax overdraft that I was struggling to pay back but I did always pay some money into it. I was suddently changed to the £1 per day which gave me massive monthly charges and for a little bit at first made me over my overdraft limit which you then get £5 per day. My account was stopped and I decided to go to debt consumer credit to help me with paying my debts. They organised an agreement with Halifax to pay off monthly. Every month I was getting letter that the money was never on time and every month I was on the phone to Halifax reminding them of the agreement and it takes 3 days from consumer credits payment to reach them ( I paid consumer credit in advance) out of the blue I get a letter from cabot saying I owe them money. I called Halifax and seems that after 6mknths they automatically sell your debt on and Cabot now owns my debt. I came off the consumer credit as I felt it done me more damage and called all my debtors myself and agreed my own terms with them all. I have now paid off Cabot but as a result the Halifax and Cabot are now showing as defaults on my credit file! I'm going to fight these defaults as I have always paid on time from my side, was never informed they will just sell my
Debt and when they did wasn't told by Halifax and worst of all this wouldn't of got this far if my overdraft wasn't changed in the first place! However I do know I shouldn't of used it either so I paid without question!