Increasing overdraft - decision not made in branch

book12

I went into branch to increase my overdraft on my graduate account.

The branch staff entered my request onto the system, and print the paperwork. The staff said that the paperwork needs to be sent off somewhere for a decision, as they can't do overdraft increases in branch. The staff said that I will know the outcome, if my overdraft can be increased in a few days time.

I was wondering why the decision is not instant, and can't be done in branch.

jambosans

book12 wrote: »

I was wondering why the decision is not instant, and can't be done in branch.

Could be the nature of your account - student and graduate account overdraft increases may be subject to a decision by underwriting/ lending/ overdraft appeals department. If you visited branch today, I would take a guess that the department that makes the decision is Monday to Friday, 9 till 5 deal, which means they can't get an instant decision - therefore a paper appeal has to be sent.

book12

The staff said the chance of getting the increase is good, as my spending patterns are good (i.e. don't spend a lot, and in control with the budget), regular income, and good maintanence of the account. The staff also saw my overdraft usage, and say it's good, as whenever it goes negative, it goes back to a positive balance pretty quickly.

The staff said that I could know by Monday (hopefully).

If for some reason, I get declined, is it worth appealing? When I appeal, I would mention to them about different amount for the increase. I hope that will be ok.

jambosans

book12 wrote: »

If for some reason, I get declined, is it worth appealing? When I appeal, I would mention to them about different amount for the increase. I hope that will be ok.

It depends, overdraft appeals/ underwriters/ lending are normally the same department, and usually last port of call for an overdraft increase. You tend to find that computer often says "no" on overdraft increases for student or graduate accounts, hence the involvement of a manual assessment to take into account the mitigating circumstances which make student/ graduate overdrafts unique (low income, etc.).

If it is declined I would ask the decision appealed. I'm only surmising above that your request has been already been sent to the underwriters. It might be worth contacting your bank on Monday and asking if they can check the status of your increase with the relevant department - you will probably get an instant decision there and then.

book12

The branch staff faxed it off yesterday, and said I would know on Monday by phone call. How would I appeal if it was a decline? Even if they still say no to my original amount, I will ask them to increase it to another amount, which I hope they would accept.

Here are my circumstances:

• I earn £1050 (before tax) - equates to £900ish after tax each month;
• Spend between £100-£200 a month (it could be less than £100 depending on the situation);
• I have asked an overdraft increase to £100

In your opinion, do you think I would get it? :o

jambosans

book12 wrote: »

The branch staff faxed it off yesterday, and said I would know on Monday by phone call. How would I appeal if it was a decline?

It depends, as I've said before, if the fax has went to the underwriters/ lending/ overdraft appeals (varies from bank to bank) and if they decline, there may be no further appeal. To give you an example, your bank may have a two step overdraft increase process. Branch check: computer says "no" (which is perfectly normally as this system is designed to assess overdraft increase for all customer); second stage involves appealing the decision to underwriter. At this point they will look at the unique nature of your account, spending patterns, etc. and make a decision.

book12 wrote: »

• I earn £1050 (before tax) - equates to £900ish after tax each month;
• Spend between £100-£200 a month (it could be less than £100 depending on the situation);
• I have asked an overdraft increase to £100

In your opinion, do you think I would get it? :o

It's hard to say, I'm not an underwriter, but based on this information alone, I don't see why not. If it makes you feel better, in the past, when I had to increase my old student account overdraft, I was never once able to do it via branch or telephone banking. It always went to underwriting and it was always increased. My circumstances back then were no where near as good as yours (I'm sure at one point outgoings were higher than incomings ).

When branch can't increase on a normal current account, then that's likely sign that any appeal will decline further (as computer's are incredibly accurate at risk assessment). However student/ graduate overdrafts are completely different, in many respects they're almost interest free loans (as the bank are unlikely to remove the overdraft during the graduate term), meaning manual assessment is required. Plus there's a naive (on the part of the banks) assumption that every graduate is going to earn megabucks, pay back the overdraft, and start investing millions with the bank. :rotfl:

If you get a phone call on Monday, and the it's a decline, ask to appeal. However, like I've said, you may just be told it has already been to underwriting so no further appeal is possible.

Make sure you update tomorrow to let us know if you go it.

book12

Had a call from the staff.

They need more information from me before processing the overdraft request further. They require a few things, such as if I have any other loans/overdrafts (including 'graduate' ones) - only allowed one graduate overdraft.

Hopefully after that I get a response.

book12

Update

They have said they want to see 3 months worth of bank statements from my previous bank before they can process my request.

I haven't banked with them long enough (including the amount of time holding an account with them). In the banks opinion, the amount left over each month is enough to do what I want, without the overdraft increase.

I guess I could try again when I have a better salary, and bank with them longer. I think I should cancel the application for the overdraft request.

I can't believe it's hard to get an overdraft increase. :