Has your overdraft been cancelled?

elliephantus_2

Whilst setting up a new business I was dependant on my £1000 overdraft from Nationwide, I was 2 months off bringing in a regular wage when i got the letter telling me my overdraft was being reduced to £250 within 28 days - scary stuff, I asked them for a 2 month extension which they refused but they allowed me to have a gradual reduction overdraft which reduced by £100 a month until it reached zero, they said that this account would then however never be allowed an overdraft again. So had no choice but to do this, in the meantime I opened another current account at Nationwide which gave me a £1000 overdraft and once my original account had got back down to zero I applied through online banking to increase the overdraft limit and they allowed an £1800 overdraft - not sure of the logic there?!

MLisking

Current account provider - HSBC

Overdraft limit before change - £200

Overdraft balance at time - £180

New overdraft limit after change - £0

Whether this happened at an official overdraft review - Yes

Any charges - We were charged £50, then paid it off after approx 10 phonecalls (each!) a day to both myself and my husband (joint account) the following month.

Whether you were notified - Yes, by letter. I understand they wanted to take the overdraft facility, however charging me for not paying it straight away? Money doesn't grow on trees you know :mad:

di_bill

I have a current account with the Abbey, since 1988. My overdraft was £1500 for 10+ years. I had an overdraft balance of £300-400 in March when I received a letter from them to say the overdraft was being withdrawn. I now have no overdraft. I will re-apply when I have used the account for a few months.

emmasherrock

Im with barclays, and i have always had a £10 "personal reserve" which allows you to go a bit over on your card. i have had this facility since i opened the account. when i was out shhopping the other day i tried to use my card and it was rejected, i knew i had money in my account and still hadnt dipped into the personal reserve, so went to my bank and asked them what was going on and they said, we have removed it sorry your using it to much, but as i explained to them, the are not terms to say often you can use it and it always gets repaid within a week at the most.
But my mum thankfully is a finacial advisor and when i told her she told me to go back to the bank and mention "TCF" ( treating customers fairly) the FSA ( Finacial services authority) would jump up and down on them if they knew they were doing this to people without warning or notification of any kind! mentioning these few little words strkie fear into banks at the moment, because most of them are now owned by the tax payer the kinda need to keep us happy!! you tend to get your own way and your overdaft back pretty sharpish!!

Tone_stew06

So glad someone has raised this, My brother is in dire straights as he is self employed and work has dried up. Eventually this week he got his charges from his bank refunded under the hardship scheme, (he still thought it was on hold)

However he has another account that he used when he was an employee, since he has not used this account for 2 years, Barclays have said he has to pay £80 a month to clear the overdraft, its currently about £1200 overdrawn, otherwise they will close the account, he explained the situation and that his priority was his mortgage, (currently behind) Barclays did not acccept his £10 a month. They now have said if he refuses to pay £80 they will take him to court and revoke the overdraft and he will be responsible for further charges. They are also calling him most days hastling him!!

Can Anyone help with some advice. I have sorted and helped him as much as i can with refunding of charges for bank charges, CC and mortgage fees. But am stuck for advice on this. Many thanks, apologies for the LONG message??

lutmut

Hi there,
I literally just had my overdraft cancelled today by the Co-op Bank, without prior notice. My overdraft was £300.00 and I had reached £255.00. I went to draw out some money this morning (payday)!!
The machine kept my card and after some questioning I was told that they had changed my account from a Priviledge Premier to a basic account!! Nothing received in writing and no phone calls.So this has left me very short for the month as I now have no overdraft whatsoever.......

Not a happy bunny.........

Sol00

My brother's overdraft was cut from over £1000 to £100 without notice.

My mum's was also cut by about £300 without notice. Both Bank of Scotland.

nettyh

I had my overdraft cancelled without warning about 16 months ago, just as the warnings of the credit crunch were coming in. I know that lots of other people had the same experience with the same provider at the same time.

Provider: HSBC
Overdraft limit agreed: £2200
Overdrawn by: £2000
Overdraft limit after cancellation: £0
Warning Given: NO!
Charges: £100s of pounds

To make matters worse I was out of the country at the time and had my credit card with them cancelled at the same time!:eek:

Apparently it was done because an overdraft review was well overdue (it had not been reviewed in the 9 years I had had the overdraft).

HSBC tried to force me in to a 'Managed Loan' as I could not repay immediately and was incurring charges daily. The interest rate offered for this sounded very attractive but fortunately I had the good sense to phone the Debt Advice Line who told me exactly how to approach things. I stuck to my guns and refused to accept a managed loan, and threatened to report them to the ombudsman.

It took about 3 months to get sorted, but I finally had all charges refunded and am now paying off the overdraft at £50 a month (a figure I chose) with NO INTEREST!:T

Anyone else finding themselves in this position I advise to phone the National Debt Line straight away, they are fantastic:A

nettyh

Contact the National Debt Advice Line, they helped me get everything sorted out. See my post two below yours!

jjonathan

Abbey removed our overdraft of £1000 which we use on a joint account just for a few days each month to make sure the mortgage gets paid etc. As we are paid at differnt times of the month.

Nothing from Abbey to say they were stopping the overdraft, we did incur charges, but even worse now have a bad credit rating due to a missed mortgage payment (now sorted) even Abbey will not give us a new mortgage and they caused the problem.

rocket science is easy after talking to Abbey for a couple of hours.