Has Your Overdraft Been Cut?? Any Answers?

Goody67

Hi there,
First time poster looking for some info.
Has anyone recently had their overdraft cut by their bank, specifically the Abbey.
I had my overdraft cut by £300 in a single month with no explanation. I have been to the branch (twice) and made 14 phone calls to Abbey including 5 so far to the Customer Complaints Dept. and no one has been able to give me an explanation as to why this action has been taken. I have checked my credit files and they are fine, I have had no untoward transactions and my income to the account has remained stable.
Has anyone else come across this or any advice you could give me??
Adrian.

dc110

income to the account has remained stable.

stable but does it cover the overdraft limit?

Goody67

Yes, in fact I pointed out to them that my salary has increased over the last 18 months and it covers 35-40% more than the overdraft itself.

Any thoughts as to why they have taken this action. All I am getting is "computer says no"?

naijapower

The reason is quite obvious. These banks are struggling. Abbey just laid off staff. Ran into someone yesterday who was laid from Abbey this week. But guess what he was smiling cos his total redundancy pay plus other extras would be 60K. He seemed quite happy.
As you can see, they are laying off staff right left and centre

Goody67

I was thinking that too. No one will tell me a reason and if they had one, they would be first to tell me so that they can take some of their money back!
I always keep £250-£300 left in the account at the end of each month to cover any emergencies. Never had a charge on my account in 15 years. So maybe they are thinking that I don't need all the overdraft.

Just wondering if this is the start of things to come??

dc110

So maybe they are thinking that I don't need all the overdraft.

Thats probably it.

jambosans

Goody67 wrote: »

Just wondering if this is the start of things to come??

There's a massive thread on here somewhere about overdrafts being removed - if I can find the link I will update.

I think banks are tightening their lending policies and finally wising up to the concept of an overdraft being a form of short term borrowing.

They don't really need to give you any more of a detailed answer, other than they have reviewed your lending with them and have decided to withdraw part of the overdraft. Ultimately if you live in your overdraft then Abbey are never going to see a return unless they forcibly reduce the amount. It is tough love but overdrafts are repayable on demand.

Goody67

Think you are right. Not bothered about paying it back... it was the taking of a third of it in one month. Fixed mortage deal is up in three months and looking to re-mortage. Asked if they could reduce the overdraft at £50 per month for 6 months and they said great. Asked if it would have any impact on my credit file and they said no...It will only show on your credit that you are "under debt management"!! Ehhh no thank you.
More annoyed that they won't tell me a reason.
Can you post the link you mentioned. Thanks for your help.

dc110

http://forums.moneysavingexpert.com/showthread.html?t=1655559

im not great with the linky things but thats it assuming the link works


Edit : it works

jambosans

dc110 wrote: »

http://forums.moneysavingexpert.com/showthread.html?t=1655559

im not great with the linky things but thats it assuming the link works


Edit : it works

I should've just looked on my post history. I was the last person to post on that thread. May have brought it back to life.

simon_templar_2

There are numerous reasons the OD has been reduced. Ranging from amount credited per month to account conduct etc.

Abbey are not laying staff off at all, that is pure fabrication and nor are they a struggling bank. I think the person must be getting mixed up, Lloyds are laying people off left, right and centre.