Bank - telling us to repay overdraft

medion

We have been with our bank for years and have an overdraft facility that we have been using (but not exceeding). We have just been told that the bank wants to make a 'formal' arrangement to repay the overdraft facility. We have not encountered this before and there has not been any negative activity around our bank or other credit facilities. Has anyone else had experience of this?? We did recently make a complaint around a service that we had received - which was wholly justified and wonder if this has come from that?? All a bit strange. Any advice is appreciated.

Loughton_Monkey

Banks do the weirdest things. They tend to like people who pay their exhorbitant OD interest, but stay within the limits. Time to move banks, methinks.

YorkshireBoy

Are you constantly in the overdraft? For how many days each month?

Is the account ever returned to credit, when monthly salary hits for example?

How large is the facility? And what's the average balance in there?

davidgmmafan

An overdraft is repayable on demand so they could (in theory) demand payments of all overdrafts anytime they like. Of course in practice if they did this the financial world would probably grid to a halt.

The formal bit I think just relates to some kind or payment arrangement such as a reducing overdarft. I believe many organisations have woken up to the fact that people are using overdrafts all the time rather than as a short term measure.

I'm no seeking to apportion blame as customers and banks have some responsibility. On the positive side at least they aren't changing thier T & C's like Halifax to increase the amount you would pay per month!

bristol_pilot

Overdrafts are repayable on demand. It is probably retaliation for the complaint you made. There's not a lot you can do but repay the money and maybe consider taking your custom elsewhere.

davidgmmafan

I don't know about the retaliation part, I believe the 'review' they conduct would be automated. It is it retaliation (difficult to prove) I recall when this happened in relation to people who had reclaimed charges the FOS took a dim view of it.

medion

Thanks for you replies -

Are you constantly in the overdraft? For how many days each month? c 5-7days.

Is the account ever returned to credit, when monthly salary hits for example? yes - every month.

How large is the facility? And what's the average balance in there?

The o/d is under £2k and each month there is c£3.5k paid in.

It's not a massive amount of money but still regular as clock work.

To make it worse they have offered our daughter (who only works part time and is not a homeowner) a credit facility of more than 3x her irregular income!!

vaporate

medion wrote: »

Thanks for you replies -

Are you constantly in the overdraft? For how many days each month? c 5-7days.

Is the account ever returned to credit, when monthly salary hits for example? yes - every month.

How large is the facility? And what's the average balance in there?

The o/d is under £2k and each month there is c£3.5k paid in.

It's not a massive amount of money but still regular as clock work.

To make it worse they have offered our daughter (who only works part time and is not a homeowner) a credit facility of more than 3x her irregular income!!

Banks are carrying on the same. No recession.

olly300

medion - have a word with them about paying back your overdraft and at the same time tell them you are changing banks. Then do so but avoid Santander.

bengal-stripe

olly300 wrote: »

have a word with them about paying back your overdraft and at the same time tell them you are changing banks.

A new bank account, might not give you an overdraft at all.

AnonymousForObviousReason

olly300 wrote: »

Then do so but avoid Santander.

olly300 - I don't think saying to avoid Santander is relevant to this. Just because they offer terrible service, are staffed by idiots and in my opinion are attempting to steal my savings, you won't hear me slam them (well maybe in my sig, oh okay in a few posts.)

Anyway medion - it's probably worth while arranging a meeting rather than ignoring it where they may just remove it without warning. Set it up for a month away (claim you're going on holiday), in the mean time set up your new account some other bank (not Santander) making sure you have the overdraft you require. If you don't like the meeting just tell them to stick it.