Why wont they reduce my overdraft???

Youdontseeme

Hi

I currently bank with Alliance & Leicester (or the dreaded Santander as it is now!)

I have just rang to ask if I can reduce my overdraft and they said no??? I could clear it completely but I cant reduce it "because of the way I run my account"

I am at a loss, my overdraft is £800 and while I use it every month I figured reducing it but £50 a month I could slowly pay it off but they wont let me its either all or nothing.

I know I could stop running it up but if its there I know I'll use it

Is there a proper reason for this as opposed to computer says no?

YSDM

tealady

The only suggestion I can offer is to switch banks.

Youdontseeme

I did think about that but wont they charge me more for my overdraft if I don't use my account? Can I just pay it for example just by sticking 50 quid in and have everything else in another account?

I'm not too sure of the ins and outs as I have never banked with anyone else, up until a few months ago A&L were great, but I have had major probs since they became Santander.

YDSM

barbiedoll

Is there any way that you could get into a branch? Phone staff can be pretty useless and they are really tied up with the huge amount of complaints at the moment, due to the Santander takeover (see the bank accounts thread :eek:)

If you can get to speak to a real person, (make an appointment if possible) tell them that you want to manage your money better and as you wish to continue banking with them, you will need their help to reduce your overdraft slowly. Imply that if you don't get what you want, you will take your custom elsewhere. Tell them that you want to begin a savings plan with them, open a savings account whilst you're there (you don't have to use it if you don't want to) and let them know that you are trying to be responsible with your money. Make it clear that you cannot afford to pay off the overdraft in one hit but that you are willing to reduce your spending so that you can reduce it each month by £50. If you don't get any joy, then open another account somewhere else and simply set up a standing order for £50 per month to pay it off.

pepe2008

They are a Bank. Surely you cant be expecting to get anything approaching 'Customer Service' that would be of some use !

Change your Bank, or dump the Bank and go to a Building Society

kezzygirl

hi there.we have the same problem.our overdraft is £150, and we are always in it,as it is there.Requested that they take it away and they refused.Said that the account will be up for review in jul 2011!goodbye santander.....well, for me anyway, i just opened an account with co-op!hubby staying with santander

arthursleep

I have been able to reduce my overdraft by small amount by going into branch and asking (may be worth moving) i with Halifax.

Ellabelle

barbiedoll wrote: »

. If you don't get any joy, then open another account somewhere else and simply set up a standing order for £50 per month to pay it off.

I really don't think you should pay off the account in small amounts from another account by SO, the reason being -

Bank overdrafts are 'repayable on demand' (eg. the bank could demand the repayment of the whole overdraft in one go tommorow if they wanted to).

They normally don't do this. However, if you don't 'service your overdraft' which means pay into your account a certain amount as a percentage of the total overdraft each month (this amount varies with each bank I think) then they will probably take the overdraft away.

(By the way it doesn't matter if the money paid in to service the account is then withdrawn again through the course of paying your outgoings - as long as the money is paid in in the first place each month).

If you don't service the overdraft and they take your overdraft away you could end up with a defaulted account and sky high
unauthorised overdraft charges. 'Unauthorised' charges because if they take your overdraft off you it is no longer 'authorised borrowing' but you will still owe the money.

As previous posters have said you will need to get Santander to agree a stagered reduction in your overdraft. Or you could move the whole account including the overdraft to another bank and get the new bank to agree to a stagered reduction in the overdraft.


Hope this helps.

Kind Regards

Ellabelle

Jioey

Santander are a load of ... and you can pay off your overdraft in small amounts. I know because I am doing it at the moment. The only difference is, I have a temporary overdraft. Might be worth ringing up customer services and asking them if they can replace your current overdraft with a temporary one so that you can pay it off monthly as you wish. As far as I'm aware I am not paying any interest or extra charges for the overdraft, which started off at £2,000 and is now down to £670. I used to pay off £111 a month but rang customer services to half this whilst I'm between jobs. Hope this helps and good luck getting it sorted. I know from personal experience that once my overdraft is paid off I'll be switching banks and won't look back.