natwest o/d increase without consent

shazkhan111

I have had a student(and then graduate) a/c with natwest for 6 years which has now been converted to a normal current a/c, i never had an overdraft on my student a/c.

They wrote to me a few weeks ago saying that they were pleased to inform me that I could have a £500 overdraft on my a/c, i have never applied for this.

If I wanted it I had to do nothing, if I didnt want it I had to send a tear off slip back in a paid envlope.....which I did.

However they have applied the overdraft on my a/c of £500, are they allowed to do this?? Would they have credit scored me?? Can I complain.....am I right or are they right.....feedback appreciated!

The_Boss

They may have credit scored you, but probably wont have credit checked you. They did this with me, and also told me that it wouldnt affect any future increases in my credit card limit as they were totally different departments.

shazkhan111

sounds like rubbish to me......no offence to u!

grumbler

shazkhan111 wrote:

...are they allowed to do this?? Would they have credit scored me?? Can I complain.....am I right or are they right.....feedback appreciated!

I am sure this decision was based on their internal scoring system and your history of running the account. I don't see any reasons for complaining. They did you a favour and you didn't lose anything. It is up to you whehter to use the overdraft or not. You can have it and don't use it. However, if you have it and go overdrawn accidentally, you are not charged any fees and are charged smaller interest as against unauthorised overdraft. I have overdrafts on all my accounts (some up to £2.5K), never use them deliberately, but feel more relaxed with day-to-day banking.
IMHO it was a mistake to refuse ...

The_Boss

shazkhan111 wrote:

sounds like rubbish to me......no offence to u!

Well, my current account doesnt appear on my credit report, so therefore lenders do not know the overdraft or the extent of it exists. Not as rubbish as you may think. My only regret is cancelling my old NatWest card which also did not appear on my credit report forms.

shazkhan111

banks obviously have a limit to the amount they can lend you based on their internal credit scoring system....correct?

Now, I may want to apply for a £10,000 loan in few months for a car....but because i have this overdraft the lending capicity is decreased hence i may not be eligible for the full £10000 fro example.

going2die_rich

The_Boss wrote:

They may have credit scored you, but probably wont have credit checked you. They did this with me, and also told me that it wouldnt affect any future increases in my credit card limit as they were totally different departments.

I believe any overdraft limits are shown on credit reports so it will affect any other companies you try and get credit with since it shows you have an overdraft facility with someone else. Not likely to make a huge difference but it does all add up. Something to bare in mind.

dazza.mk

#8 Not with all banks they dont!

Some of the high street don't due to the Paranoia that competitors will target their customers (as they might see the info when performing other credit searches).

The_Boss

going2die_rich wrote:

I believe any overdraft limits are shown on credit reports so it will affect any other companies you try and get credit with since it shows you have an overdraft facility with someone else. Not likely to make a huge difference but it does all add up. Something to bare in mind.

Go back and read what I said - it doesnt always appear. My account was set up in 1996, in the days before they had to report to credit reference agencies. My old NatWest card, opened in december 1997 also didnt appear on any CRA files at all. I closed it last year and now regret this.

shazkhan111

the way i see it if i don't give them hassle the shouldnt give me hassle

what do u guys think their response would be if i did call them up or go to a branch and take it up

rh41

no offence. but you are complaining with no reason to complain. id let it lie if i was you. the branch would just say it was good customer service meeting the needs of there customers.