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Has your overdraft been cancelled?

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  • Me. My overdraft limit which was £5000 has been reduced to £4250 without any warning and is going to cause me major problems this month



    Halifax. I'm putting you through to one of my colleagues, who will help. They will be with you shortly so feel free to go about your day. If you have push notifications enabled, your phone will alert you when you get a response.



    Me. I have been a customer for around 40 years. Never missed or been late with loan payments or gone over my overdraft limit so I am not only very worried but extremely disappointed



    Halifax. Hello Steven. Thank you for contacting mobile messaging. You're speaking with Kieran. I am sorry to hear this has happened. I can certainly look into ways we can help you with this. Firstly you can apply to increase you overdraft through the app but again this is subject to eligibility.


     As we want to support you during this time we do have a Money Management team who are able to carry out a full financial health assessment with you and discuss your situation. In many circumstances they can offer an immediate solution if you are able to provide details of income and expenditure. Their direct number is 08081450379 and they are open Monday through Friday 08:00 – 21:00 and Saturdays 08:00 – 14:00. The review might take up to an hour to complete, so please allow for this when choosing a time to call.



    Me. Why have you just reduced my limit without even giving me any notice



    Halifax. I am really sorry that the overdraft has been reduced and it has now left you in this situation, when you applied for the overdraft we would have made you aware that this will be reviewed regularly and may be reduced at another date.   I do understand however that this is not ideal. To support you moving forward I can certainly look into refunding bank charges you have accrued in the last couple of months and we are going to provide you with a 30 day period of grace as a temporary measure. This means we will stop applying charges or interest to your current account(s) including any joint accounts to prevent your balance increasing.


     If you have any regular payments due from your account such as Direct Debits or Standing Orders these will continue to claim in the meantime, unless you choose to cancel them.


     We will also not attempt to contact you during this period although you may still receive regulatory or marketing letters.


     If we do not hear from you again the charges and/or interest you are paying today may recommence following the 30 day breathing space we have agreed. We therefore recommend that you contact us again if you would like to discuss your circumstances further.


     During the period of grace if you go into an unarranged overdraft this may impact your credit file.


     Please confirm this solution does help you and you want to proceed?



    Me. Thank you and if you can refund the previous charges and provide the 30 day period of grace that will help. I am aware that you can of course reduce my overdraft limit but I would expect to be given a reasonable period of notice in order for me to make whatever adjustments necessary. I have a good credit record and to see that wrecked by the bank I have been with for about 40 years and where I have never missed a loan payment or gone over my overdraft limit is disgraceful in all honesty. I appreciate that this is not your doing and that these decisions are made by an algorithm dictated by risk versus profit. Thank you for your help.

  • eskbanker
    eskbanker Posts: 33,672 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    Me. My overdraft limit which was £5000 has been reduced to £4250 without any warning and is going to cause me major problems this month

    [...]


    I have a good credit record

    You consider that you have a good credit record but a substantial overdraft limit of £4,250 would cause you major problems?  Since they have the option of withdrawing the overdraft in its entirety, I'd suggest that this ought to be seen as a wake-up call and you'd probably benefit from reviewing your financial management to minimise the apparent reliance on a large discretionary and high-cost facility....
  • Fighter1986
    Fighter1986 Posts: 834 Forumite
    500 Posts Third Anniversary Name Dropper
    Yes I'm afraid that having and regularly using a £4000-5000 overdraft will have quite a deleterious effect on your creditworthiness. 

    Overdrafts are repayable on demand unlike credit cards and loans, the banks are within their rights to withdraw the facility at will. You've signed to agree to this.

    It might be worth seeing if you can obtain a money transfer card from MBNA or Virgin Money to clear your remaining overdraft balance, cancel the limit, and chip away at the resulting credit card balance as best you can - and reorganise things moving forwards in such a way that you won't have to rely on an overdraft again. 
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    Me. My overdraft limit which was £5000 has been reduced to £4250 without any warning and is going to cause me major problems this month



    Halifax. I'm putting you through to one of my colleagues, who will help. They will be with you shortly so feel free to go about your day. If you have push notifications enabled, your phone will alert you when you get a response.



    Me. I have been a customer for around 40 years. Never missed or been late with loan payments or gone over my overdraft limit so I am not only very worried but extremely disappointed



    Halifax. Hello Steven. Thank you for contacting mobile messaging. You're speaking with Kieran. I am sorry to hear this has happened. I can certainly look into ways we can help you with this. Firstly you can apply to increase you overdraft through the app but again this is subject to eligibility.


     As we want to support you during this time we do have a Money Management team who are able to carry out a full financial health assessment with you and discuss your situation. In many circumstances they can offer an immediate solution if you are able to provide details of income and expenditure. Their direct number is 08081450379 and they are open Monday through Friday 08:00 – 21:00 and Saturdays 08:00 – 14:00. The review might take up to an hour to complete, so please allow for this when choosing a time to call.



    Me. Why have you just reduced my limit without even giving me any notice



    Halifax. I am really sorry that the overdraft has been reduced and it has now left you in this situation, when you applied for the overdraft we would have made you aware that this will be reviewed regularly and may be reduced at another date.   I do understand however that this is not ideal. To support you moving forward I can certainly look into refunding bank charges you have accrued in the last couple of months and we are going to provide you with a 30 day period of grace as a temporary measure. This means we will stop applying charges or interest to your current account(s) including any joint accounts to prevent your balance increasing.


     If you have any regular payments due from your account such as Direct Debits or Standing Orders these will continue to claim in the meantime, unless you choose to cancel them.


     We will also not attempt to contact you during this period although you may still receive regulatory or marketing letters.


     If we do not hear from you again the charges and/or interest you are paying today may recommence following the 30 day breathing space we have agreed. We therefore recommend that you contact us again if you would like to discuss your circumstances further.


     During the period of grace if you go into an unarranged overdraft this may impact your credit file.


     Please confirm this solution does help you and you want to proceed?



    Me. Thank you and if you can refund the previous charges and provide the 30 day period of grace that will help. I am aware that you can of course reduce my overdraft limit but I would expect to be given a reasonable period of notice in order for me to make whatever adjustments necessary. I have a good credit record and to see that wrecked by the bank I have been with for about 40 years and where I have never missed a loan payment or gone over my overdraft limit is disgraceful in all honesty. I appreciate that this is not your doing and that these decisions are made by an algorithm dictated by risk versus profit. Thank you for your help.

    Have you asked for a mortgage holiday or some other deferment? 
  • I am a Royal Bank of Scotland customer and recently increased my overdraft from £1750 to £2100. The bank only let me have this increase for 30 days and when I contacted them regarding this no one understands why give me it for such a short period of time, now they want my card back, and for me to start paying what I owe, this cannot be correct. PLEASE HELP!!!! 
  • Dandytf
    Dandytf Posts: 4,984 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    @prettykitten
    +1 Cop Op =pre SC dmp times. Once tel call DD's instantly cancelled including overdraft.
    Managed a switch to another provider following year.
    Replenished CRA Reports.2020 Nissan Leaf 128-149 miles top charge. Savings depleted. VM Stream tv M250 Volted to M350 then M500 since returned to 1gb
  • CRISPIANNE3
    CRISPIANNE3 Posts: 1,475 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 21 June 2020 at 10:45AM
    I remember about 40 years ago when most of the decisions were made by the bank manager I applied for a £150 temporary overdraft. It was agreed and duly repaid on time. I then asked whether it could be made on a more permanent basis and the Asst. Manager said to me he had not problem but the issue is the Manager does not like you. 

    I changed to another branch of Lloyds bank and have been with them ever since and never any issues for credit. However as we know it's all done by credit scoring now rather than a Mr Mainwaring figure.
  • eskbanker
    eskbanker Posts: 33,672 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Johnesh76 said:
    I am a Royal Bank of Scotland customer and recently increased my overdraft from £1750 to £2100. The bank only let me have this increase for 30 days and when I contacted them regarding this no one understands why give me it for such a short period of time, now they want my card back, and for me to start paying what I owe, this cannot be correct. PLEASE HELP!!!!
    If they want your card back then that suggests account closure rather than merely overdraft reduction or withdrawal, so would imply wider issues with the account conduct?  The current measures that banks are adopting are outlined at https://www.moneysavingexpert.com/news/2020/03/uk-coronavirus-help-and-your-rights/#overdrafts but there's nothing compelling them to lend their money to anyone.
  • eskbanker
    eskbanker Posts: 33,672 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Dandytf said:
    @prettykitten
    +1 Cop Op =pre SC dmp times. Once tel call DD's instantly cancelled including overdraft.
    Managed a switch to another provider following year.
    That poster hasn't been on the forum for over eleven years so is unlikely to see your response!

    I'm not quite sure what your post is actually saying, you might find it's more intelligible if you use fully-formed words and sentences?
  • My son has had the overdraft facility on his 321 student account removed by Santander. They say this was done after a "routine review" and is because of "the amount of regular credits...or the way the account is managed..or accounts with other lenders." They have given 5 weeks notice of the change but since my son's student loan is paid in every term and he has not used the facility we do not understand why this has been done. The free overdraft facility was a major factor in choosing Santander .
    Anyone had similar experience?
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