Has your overdraft been cancelled?

askintnurse

Hi. HSBC withdrew my overdraft WITHOUT NOTICE. I have banked with them for over 20 years. Have great credit rating. Employed full time. Had a £3k overdraft. Withdrawn to NIL. Monthly salary £2k+.
I think it may have been because I applied for bank charges to be refunded.

Also had my debit card cloned last year. They were useless. Foreign chap answered phone on "fraud hotline". He could not understand me! Service is impersonnal and they really dont give a toss! Will change my bank when I get five minutes...........

cyru24

A Bank or money lender will only with drawal an over draft for the following reason:

1) The account is been mis-used, card abused, Garateeing cheques upto £100 with insuferant funds.

2) If the account is over drawn or over its limit and dorment (no credits have been paid for 35 days or more) you normal will get collection calls for these first.

3) The account is in final dement ( this is a letter asking you to pay all outstanding debts with the bank)

4) 6 out of 12 months of the year the account has been over the agreed limit, or if the account is always in a overdraft limit and never in credit even after you are paid.

5) If the customer is in financial difficulities and the customer is unwilling to contact or deal with the bank to make agreement or repayment offer.

In all these case you will receive a letter informing you if a review of your over draft it sum times comes with your statement.

It does state it the T&C of most current accounts if you mis-use the account the overdraft limit can be removed at any time with 30 days notice or final demend can be issue if the mis-use contuies

Cumbrian_Male

cyru24 wrote: »

A Bank or money lender will only with drawal an over draft for the following reason:

1) The account is been mis-used, card abused, Garateeing cheques upto £100 with insuferant funds.

2) If the account is over drawn or over its limit and dorment (no credits have been paid for 35 days or more) you normal will get collection calls for these first.

3) The account is in final dement ( this is a letter asking you to pay all outstanding debts with the bank)

4) 6 out of 12 months of the year the account has been over the agreed limit, or if the account is always in a overdraft limit and never in credit even after you are paid.

5) If the customer is in financial difficulities and the customer is unwilling to contact or deal with the bank to make agreement or repayment offer.

In all these case you will receive a letter informing you if a review of your over draft it sum times comes with your statement.

It does state it the T&C of most current accounts if you mis-use the account the overdraft limit can be removed at any time with 30 days notice or final demend can be issue if the mis-use contuies

Which isn't the case in most of these examples, HSBC and HBOS are revoking overdrafts without notice and which are operated within limit.

This is banks panicking about the current economic state that they helped bring about and the recently introduced debt relief orders.

Cumbrian_Male

Cumbrian_Male wrote: »

• Current account provider HBOS
• Overdraft limit before change £1300
• Overdraft balance at time Was £1600 but returned to credit Mon 27th
• New overdraft limit after change £0
• Whether this happened at an official overdraft review No
• Any charges Yes
• Whether you were notified Not prior, email after the fact

My son has a student account, he went into the local Halifax on Mon when his maintenance payment went in. The person he spoke to asked him if his current overdraft was sufficient and he said yes. His account was £4-500 in credit and when he got home he instigated a credit transfer to me to repay £600 we lent him, today he finds that his rent £300 has gone out, they cancelled his overdraft, and cancelled the credit transfer "due to insufficient funds" and charged him £20.

Now I am left unable to meet some payments due, and he has £93 to live off until 26th June. 8 weeks and another £300 month's rent due at the end of May, how can they justify this? Yes he stuck his head in the sand and went over his agreed limit without contacting them, but this puts him in severe hardship.

UPDATE

He went to the bank today and they reinstated his overdraft to £1000, he has been told if he goes over limit again it will be cancelled and repayable within 7 days.

So looks like student accounts may fair better than most.

big_gay_kirk

cyru24 wrote: »

A Bank or money lender will only with drawal an over draft for the following reason:

1) The account is been mis-used, card abused, Garateeing cheques upto £100 with insuferant funds.

2) If the account is over drawn or over its limit and dorment (no credits have been paid for 35 days or more) you normal will get collection calls for these first.

3) The account is in final dement ( this is a letter asking you to pay all outstanding debts with the bank)

4) 6 out of 12 months of the year the account has been over the agreed limit, or if the account is always in a overdraft limit and never in credit even after you are paid.

5) If the customer is in financial difficulities and the customer is unwilling to contact or deal with the bank to make agreement or repayment offer.

In all these case you will receive a letter informing you if a review of your over draft it sum times comes with your statement.

It does state it the T&C of most current accounts if you mis-use the account the overdraft limit can be removed at any time with 30 days notice or final demend can be issue if the mis-use contuies

none of which was the case in my case.....

ShelfStacker_3

cyru24 wrote: »

A Bank or money lender will only with drawal an over draft for the following reason:

1) The account is been mis-used, card abused, Garateeing cheques upto £100 with insuferant funds.

2) If the account is over drawn or over its limit and dorment (no credits have been paid for 35 days or more) you normal will get collection calls for these first.

3) The account is in final dement ( this is a letter asking you to pay all outstanding debts with the bank)

4) 6 out of 12 months of the year the account has been over the agreed limit, or if the account is always in a overdraft limit and never in credit even after you are paid.

5) If the customer is in financial difficulities and the customer is unwilling to contact or deal with the bank to make agreement or repayment offer.

In all these case you will receive a letter informing you if a review of your over draft it sum times comes with your statement.

It does state it the T&C of most current accounts if you mis-use the account the overdraft limit can be removed at any time with 30 days notice or final demend can be issue if the mis-use contuies

Erm, rubbish. Those are reasons, but not the only reasons by a long shot. And the last two paragraphs are pure fiction - overdrafts are repayable on demand and facilities can be removed with no notice.

The most common reason for a limit being removed is that the overdraft has become a static debt - the customer is always up to their OD limit and the customer either can't or won't repay it. Essentially, the bank tries to force repayment. Agreed, bank charges for unpaids are not appropriate in this instance, but the bank has every right to not continue lending money it will never get back.

MABLE

askintnurse wrote: »

Hi. HSBC withdrew my overdraft WITHOUT NOTICE. I have banked with them for over 20 years. Have great credit rating. Employed full time. Had a £3k overdraft. Withdrawn to NIL. Monthly salary £2k+.
I think it may have been because I applied for bank charges to be refunded.

Also had my debit card cloned last year. They were useless. Foreign chap answered phone on "fraud hotline". He could not understand me! Service is impersonnal and they really dont give a toss! Will change my bank when I get five minutes...........

If you were whiter than white how is it you applied for bank charges to be refunded. Obviously you have gone outside the terms and conditions hence the reason charges have been applied.

I will say this again and again we only hear from the posters side of things and they will always try to make out they are the victim. Your post is a prime example or have I missed something.

MABLE

Shouldbeworkin wrote: »

This happened to us a couple of years ago. My husband had an overdraft with Lloyds for £3500, and they gave less than a month's notice to take it away, with no reason other than they could. We have 3 kids so I wasn't working, so we were left not being able to buy food, and being charged fees by the week as we had no way of repaying it. He moved to barclays and got an overdarft with them, but we had to get a loan to pay back the lloyds overdraft and fees. We're still paying this back so I'm still really angry about the whole thing. It's ludicrous that banks can plunge you into hardship without no recourse.

I have banked with Lloyds for over 27 years and in all my time with them and provided you play fair they will give you anything within reason. As I advised on an earlier post I have an overdraft facility with them for £10,000. They wrote to me stating as they wanted to reduce the facility because I was not making use of it. However the letter went on to say if I wanted to keep the existing limit they would not change it.

There has to be a very good reason in your case that Lloyds withdraw the facility and I am certain it is nothing to do with the credit crunch. Also with my credit cards not one company has said they are reducing my limits and yet we are always reading on hear that some posters are experiencing limits being reduced.

My advise is always keep within the terms and conditions and whatever bank you are with they will treat you right.

NurseUpNorth

Current account provider: The Co-Operative Bank
Overdraft limit before change: £860
Overdraft balance at time: £400
New overdraft limit after change: £200
Whether this happened at an official overdraft review: NO
Any charges: £80 but they refunded

This happened to me in July last year, I'd had my overdraft for a year on my privilidge account. Went to withdraw money and couldn't withdraw money. Got home and had received a letter saying something along the lines that my persistant overdraft was to be removed and they were reviewing the way I conducted my account. Rang the bank and got put through to snotty lady at managed account, normally the staff are lovely at the Co-OP but this dept is obviously the heavy handed one. I had to agree to pay back £60 month to bring the balance back down to credit.

Then I noticed I was getting hammered randomly for being overdrawn, when I was within the agreement and had almost bought the balance down to £60 in credit at this point! Got put through to managed accounts, another stern lady gave me a lecture about bank charges (I was paying them back more than agreed!) and said on this occaision she would refund the charges ( it was their fault!) and that if I did ever go over my overdrawn facility my account may be terminated. I've never even gone over my agreed overdraft - I felt like i'd been robbing money. Needless to say I'm going to leave the Co-op as soon as my loan is paid off. ANd i'm bloody sick of them giving me the hard sell trying to get me to buy different products when I don't need them ! :mad:

*MF*

To avoid any confusion (hopefully) ...

Two separate threads were set up to deal with the questions arising about Banks and overdrafts.

This one relates to MSE asking for posters to give information if it has happened to them per the opening post 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
• Overdraft limit before change
• Overdraft balance at time
• New overdraft limit after change
• Whether this happened at an official overdraft review
• Any charges
• Whether you were notified

See our news story for more information and the news story discussion thread to debate the issue.

As it says - there is a separate "news story discussion thread" for any discussion or comments, which can be found here:

http://forums.moneysavingexpert.com/showthread.html?t=1639419

I think it would help MSE if the threads were used as intended.

:A