Bank withdrew £1400 of my overdraft without telling me- help

Life_on_Mars?

closed- old thread

welshmoneylover

Life_on_Mars? wrote: »

:eek:
Also if they won't budge is there anything else I can do?

You could try living within your means and learn to budget so you can pay off your overdraft.

hth

Extant

Going from £2000 to £500 is £1500.

Yes, they can do this. Overdrafts are repayable on demand, and they're probably demanding it because you're always in it (at a guess).

If they've taken it away, you're unlikely to get it back - so try to bargain for a repayment plan, the reversal of that £50 charge you mentioned, and no further charges.

exel1966

Life_on_Mars? wrote: »

Thank-you very much Welshmoneylover, I was in the process of doing that anyway but due to an expensive and unsuccesful stint living abroad my cashflow is in a bad way and I just need a bit of lee-way until I can get back on my feet again.

In that case you need to speak to your bank ASAP and agree something mutually satisfactory. They may well increase it slightly, but probabbly not back to the original amount.

OD's (which can be called in at anytime by the bank) are are only usually reduced/withdrawn by banks due to account mismanagement so you'll need to put up a good convincing case for them to extend any goodwill, but you appear to have already stretched that goodwill !

As for being charged £50 for their decision to cut the O/d ? Was this to review your account ? I think you have that wrong, the charge is probably due to exceeding the agreed amount or a bounced DD/cheque etc.

[Deleted User]

As always, lots of harsh replies!

To be helpful to the OP, I thought banks had a duty to write to you notifying you of a decrease in overdraft in advance of them taking this action?

bendix

Banks can't win, can they? When they were lending money willynilly they were attacked for being profligate and tempting people into debt. Now that they are restricting people's access to debt they are attacked again.#

So which is it people? Cake and eat it too?

crispy_chris

Deleted_User wrote: »

I thought banks had a duty to write to you notifying you of a decrease in overdraft in advance of them taking this action?

Nope, thats just a courtesy. In the terms and conditions of most (if not all) accounts with overdrafts it states that the bank can change your overdraft at any time. However they normally only do this out of the blue if you go over your limit or they notice your situation has changed from when you were originally given the overdraft (i.e. you no longer have you salary paid into the account)

Extant

Deleted_User wrote: »

As always, lots of harsh replies!

To be helpful to the OP, I thought banks had a duty to write to you notifying you of a decrease in overdraft in advance of them taking this action?

There's nothing harsh here. Telling someone to learn to live within their budget instead of permanently in an overdraft isn't harsh - it's sensible.

Sportbilly_2

Pity the bank in question didn't say that some time ago. If a £2000 overdraft was appropriate at the time, why has it suddenly been reduced by 75%?

Extant

Sportbilly wrote: »

Pity the bank in question didn't say that some time ago. If a £2000 overdraft was appropriate at the time, why has it suddenly been reduced by 75%?

Because when overdrafts are approved, it's done on the grounds that it IS appropriate - but also on the proviso that it's for short term borrowing, not long term. When it's not used in that fashion, then it is appropriate to remove or reduce the facility.

bengal-stripe

Sportbilly wrote: »

If a £2000 overdraft was appropriate at the time, why has it suddenly been reduced by 75%?

That might be the reason:

Life_on_Mars? wrote: »

.....due to an expensive and unsuccesful stint living abroad.....