Has your overdraft been cancelled?

campari

How about this one:
bank renews overdraft facility for another year.
customer has claim on hold for penalty charges but in dire financial hardship.
bank refuses to review penalty charges claim until media get involed
meantime bank rolls overdraft and charges et al into new loan at higher rate.
customer reminds bank that repo action is in court on home and clear evidence from accounts that payments not being met.
bank reviews claim but no agreement reached.
bank then calls in all monies forthwith.

effective removal of overdraft therefore I'd say - and it's HSBC again with their improper business practice - targetting loans at people in hardship to suspposedly assist them.....

mary_eastwell

My overdraft was suddenly cut by £400 with two weeks notice. My circumstances had not changed, in fact I had put more money in the account than usual. I had never exceeded the stated limit. They said I used it too much! Like many people I relied on it, the whole reason it was "sold" to me in the first place, as cheap borrowing. Why give a facility and then penalise someone when they take advantage of it? Nationwide would give me no time to reduce the overdraft unless I repaid it completely. I now have a reducing overdraft which will eventually be brought to nil at which time I can apply for another one??? How crazy is that?

kerrymcdonald_2

I had a student account with both lloyds and barclays bank and they both took my interest free overdraft away, giving me just a couple of months to pay back thousands of pounds. When I confronted them about letters received, as it said on my statements I had my overdraft for another year, they said yes, we are not taking your overdraft away its just not interest free anymore!!

rb10

kerrymcdonald wrote: »

I had a student account with both lloyds and barclays bank and they both took my interest free overdraft away, giving me just a couple of months to pay back thousands of pounds. When I confronted them about letters received, as it said on my statements I had my overdraft for another year, they said yes, we are not taking your overdraft away its just not interest free anymore!!

They must have had a reason for this ... did you leave university? Graduate?

Nomad25

I've had my £1K unused overdraft facility withdrawn. No review - just a letter. As per previous poster, it's my safety net. I am thinking that if I ask for it to be re-instated, they will want an arrangement fee, that's the cynic in me.

Mabel - you are very judgemental and a little self righteous in your post - yes, there are always abusers, but especially now in the current economic climate, there are genuine cases who need some slack. A little compassion wouldn't go amiss.

dippydolphin79

my overdraft is with abbey for £1000 which im currently full into due to being on maternity leave. recieved a printed slip from abbey to say it will be removed at the end of may in which time charges will incur if not repayed in full. i had originaly planned to pay it back once i returned to full time work at the end of september. have tried to contact abbey for an extension but they cant discuss it untill the tweanty fifth of may at which time they may or may not extend it for me. have also tried to contact the collections department at abbey to arrange to pay it off in instalments but as the overdraft is still active they cant help untill it is removed? by which time the charges will have no doubt started. this is unfair as i was encouraged by the bank to use the overdraft when i intially found out that i had to take extended matt leave due to medical problems. all this is putting extra pressure on a hard working family, were not whinging like some other people have suggested. im sure im not the only person whose husband has had to take a dramatic cut in working hours, somthing which could not have been forseen when we planned to extend our family. those people who think were taking advantage have obviously been very lucky not to be effected and furthermore the reson this country is in a mess is because families like ours get no support for being hardworking.

rachyw82

kerrymcdonald wrote: »

I had a student account with both lloyds and barclays bank and they both took my interest free overdraft away, giving me just a couple of months to pay back thousands of pounds. When I confronted them about letters received, as it said on my statements I had my overdraft for another year, they said yes, we are not taking your overdraft away its just not interest free anymore!!

I'm new to this forum so this is my first post, as this subject is of concern to me.

Like Kerry, I have a Graduate Account with Barclays - it was a Student account, but once you graduate your account changes to the Graduate status, giving you an "interest-free"* overdraft for 5 years.

*Now, the "interest-free" part is for different limits each year of graduation, decreasing each year - to explain, in 2010 I will be in my last year of graduation, so in 2008 the interest-free limit was up to £800, 2009 it is up to £500 and next year it will be up to £200, then the account expires.

There is a charge for this bank account!!! I know it is really silly to pay for your own bank account, but is the only way I could manage to have a decent overdraft without extra charges. There was a charge for this account of £5 per month, which I received a letter last month explaining the cost was rising to £7 per month!

I have totally tightened up my belt and cut back on everything to save my money and get back in the black and get a decent FREE bank account without an overdraft facility, even though my limit is set at £800 and I am usually up to £600 overdrawn before I get paid. I am decreasing this slightly each month as I don't want to be paying charges next year for being more than £200 overdrawn, as I'm already paying for my account! I just hope they don't decide to take this facility away from me yet as I rely on this extra money to cover mortgage and bills costs.

Sorry for long and possibly confusing post but I just wanted to explain my situation and my account status in case anyone else is in my situation.

cloudster

I have had a very stressful time with HBOS over the past few months. Fortunately it is not my main bank account..

My overdraft was cancelled with no warning, I had a limit of £1500 and was £660 overdrawn at the time. I couldn't get money so phoned the bank fearing fraud (this had happened a few months previously). I was put straight through to the collection depatment and told I was not able to speak to cutomer services and that I would have to repay the amount outstanding at that moment, or set up a monthly payment plan on an emergency overdraft. (Very high interest rate!) I explained that I had received no notification and had infact sorted out my overdraft a month earlier after money was stolen from my account. Apparently this had been an emergency overdraft although I was specifically told at the time that I didn't have to worry until April 2010. The girl I spoke to said that she was receiving a lot of similar stories.

I took the decision to repay the outstanding amount in full, thanks to a very kind family member. I then found out I had been charged £35 and had interest of £11.05 to pay. The manager at my branch did cancel the interest charge but not the £35.

There was no official overdraft reveiew. My overdraft limit would have been put to £750 and cancelled in August. I was made to feel entirely to blame the whole time.

I have been a customer with Bank of Scotland for 25 years and I am realy shocked to have been treated this way. I made a regular monthly payment into that account and had I been given notification, I would have taken steps to pay off my overdraft. I am furious at the way in which I, and others (I have 2 friends in similar situations) have been treated and I will never bank with HBOS again. I will also be advising friends and family to be very careful. Customer services on the phone were quite frankly, rude and extremely unhelpful. I have made a formal complaint to the bank and have yet to hear back.

jingham_2

My overdraft was cancelled with NO notice, they even declined my rent payment a day after they took the overdraft away.

The bank is HSBC, when my salary went in they too away my £1,000 overdraft which I was £800 in at the time.

They gave me no notice and didnt sent me any letters.

When I rang them after I got a call from my landlord to say my rent had not been paid they refused to do anything. I had to borrow from family for that month.

The next month they then took 3 times my normal monthly payment on my credit card without any warning leaving me short of money again.

I have had to close my account as they said they could take payments directly from my current account for my credit card with no notice if they wanted.

Nomad25

How long has it been unused for?

Never used it - 5 years, but I do so much internet juggling of my money, it gives me peace of mind! Am I being unreasonable? Does it cost the bank more than they make from my in-credit account to leave the o/d in place? What is the accepted cost of an unused o/d to bank?