Bank have increased my overdraft

Jenjen85_2

Hello All,

Im new on here so im sorry if I have posted in the wrong place but just wanted a bit of advice/info if any one can help?

I had a letter from my bank (Halifax) on Tuesday reviewing my overdraft, it stated that my overdraft would stay at £100 until my next review or until I changed it. I have had my overdraft set at £100 (through my choice) for the past 3 years and have NO intention of increasing it as I try never to use it and is only there for emergencies.

However this morning I checked my account only to find that Halifax have INCREASED my overdraft to £900! As you can imagine i was quite shocked to say the least as i had not asked for this.

Can the bank do this? Are they able to just change my overdraft and not inform me when I clearly had a letter stating that it would stay at £100.

Thanks

Jenny

aleksrothis

Halifax have just done the same to me only without any letters. Overdraft suddenly increased from £100 to £1300 and the online service won't allow me to reduce it - apparently I need to call or go into a branch.

jambosans

The short answer is yes, the Halifax T&C's state:-

Halifax wrote:

25.2 If we agree to an Arranged Overdraft, we will decide your overdraft limit and tell you what it is. We will also tell you when we will review it. At that time we will review your Arranged Overdraft and decide whether or not to continue to provide it at the same limit, and inform you of our decision by letter.

So the only thing they appear to be guilty of is not informing you (both) of the increase, however I would give it a few days, if the overdraft has just increased you should get a letter confirming this. FYI, as aleksrothis has stated you can decrease your overdraft via Telephone Banking (01133 809 574 - geographical number) or branch, so it's not a major issue. Also (and I'm not sure if this will work), Online does not state you cannot decrease your overdraft (it simply makes no reference to it), so why not try entering a lower amount?

longforthesun

Me too noticed yesterday ours was increased by whopping £2100. Did call them to make sure it was them that had increased it and not someone fraudulently accessing my account and increasing it. It was them and they explained that a letter was on its way but that they had had a delay in sending these out. Their explenation for increasing it was to make sure I didn't incurr an charges for increasing my o/d. In over 2 years I have never used the OD i had with them so I can't understand their logic.

jambosans

longforthesun wrote: »

In over 2 years I have never used the OD i had with them so I can't understand their logic.

You're right, their logic is flawed, a much more likely explanation is your behavioural/ internal score with Halifax is high enough for them to automatically grant you a larger overdraft. These situations are seldom reviewed by a person, and it's the rare occasion where computer says "yes".

Fiddlestick

Even if they have increased it, you don't *HAVE* to use it...

longforthesun

Fiddlestick wrote: »

Even if they have increased it, you don't *HAVE* to use it...

Absolutley, have no intention of using it. Been there done that and learnt my lessons.

daniel598

Any HBOS customer that has had their overdraft increased is an error by the bank. The system has increased some overdrafts without notification. Any customer that has had it increased will receive a letter in the post next week explaining this and if you want it restored to the original level just give telephone banking and it will be done instantly

Rupert_Bear

Fiddlestick wrote: »

Even if they have increased it, you don't *HAVE* to use it...

Yes but some people just liking making a fuss over nothing.

sprinter11

I can't believe some off the replies on this thread,do you all ,or are most of you ex bank or current employees in particular Halifax,this is unreal.

I wil give you the proper answer to your question Jen Jen,the banks are purely and simply trying to get you to use your overdraft using the psychological approach,whereby if you see it there in your balance you think that it's yours ,very clever tactic by them,phone them and tell them to remove the not asked for increase,yet more uncalled for down right gutter tactics from HSBC..DITCH EM

daniel598

sprinter11 wrote: »

I can't believe some off the replies on this thread,do you all ,or are most of you ex bank or current employees in particular Halifax,this is unreal.

I wil give you the proper answer to your question Jen Jen,the banks are purely and simply trying to get you to use your overdraft using the psychological approach,whereby if you see it there in your balance you think that it's yours ,very clever tactic by them,phone them and tell them to remove the not asked for increase,yet more uncalled for down right gutter tactics from HSBC..DITCH EM

I have never read so much rubbish in my life. Yes your correct in saying that there is employees as I am a current employee for LBG atm but in no way is this a tactic from the bank to lure people into spending.

Me thinks the x files is on tv soon maybe you should watch that to get an idea for your next conspiracy theory