Santander withdrew my overdraft facility on my pay day with no warning!

olly300

david39 wrote: »

Santander clearly had concerns about the risk in dealing with a customer who, long term, had been running a £1500 overdraft regularly every month.

In the light of those concerns, the bank would have to look at how they could cut that risk without the fear that the customer would leave them with the £1500 not repaid.

Loads of banks have asked for people to repay sums with less than 30 days notice but however have done it more "fairly" so the customer couldn't complain to any of the regulators.

Regulators are only really interested if customers aren't treated fairly. So if you can make it look like you are treating the customer fairly then there is nothing for them to complain about.

Firstly they don't write we will "usually" give you 30 days notice in their T&C.

Secondly all they need to do is give the customer 10-20 days notice posting the letter second class on one of their monthly batch runs ensuring the letter arrives in time to give the customer about 3 working days to do something.

It's very hard to get your wages paid else where if your employer pays you by BACs with less than 7 working days notice.

After all it's not the banks fault if the post is the delayed as letters are counted as being received a couple of days after they are posted and these letters are normally not postmarked.

Mrs_Ryan

blueberrypie - Payplan are not for profit, they dont charge a fee.

Mikeyorks

Mrs_Ryan wrote: »

blueberrypie - Payplan are not for profit, they dont charge a fee.

They're commercial (not a charity). They get the creditors to fund the DMPs (allegedly) yet their own site is clear that they charge for IVAs :-

The monthly payments that you make into your arrangement will cover the payments to your creditors as well as our fees for putting together and supervising the arrangement.

davidgmmafan

Of course they would make money from IVA's like everyone else does. I doubt they make much (if anything) from DMP's, and just do because some people will be suitable for IVA's.

MarvinTheFly

After another rate increase from £10 to £20 per month for using my £500 overdraft I was offered an upgrade to switch accounts from my premier to a 123 account. The 123 account just charges £2 per month and came with a free overdraft for the first three months. I did this to initially save me a few quid but also because I wanted some time to actually repay the overdraft and get my account in credit. Toda though I received a letter stating that my overdraft facility has been removed leaving me with an unauthorised overdraft which now stands at £490. I shudder to think what the charges are going to be but I just can't pay it now... Santander have conned me! :mad:

BobQ

I am bemused why some people think that a running their life based on an overdraft for 5 years is a responsible way to behave. For those that do maybe banks like Santander are just encouraging such customers to take their business elsewhere.

BobQ

"Originally Posted by anybloodybody
I know many hard working families that are experiencing similar financial difficulties. I truly envy you judgemental OP's."

Given the bizzare editing of messages is it any wonder!

I can appreciate that you think any critical comment is judgemental, but what would you have people say when you edit the Original Posting to remove the detail? Santander may be intolerant of your problems but the fact is its their money and they are entitled to it back. The way they have done it is not in your best interests but maybe it should be seen as a wakeup call. We do not know the history of your Santander relationship but clearly they took this action because they wished to make a point or because it was a cockup. You can decide which it is.

Getting into debt is not an occupational hazard its something that you need to take steps to resolve. There may be many good reasons why you got into debt and many can be beyond your control but you do need to confront the problem.

SnowTiger

MarvinTheFly wrote: »

Toda though I received a letter stating that my overdraft facility has been removed leaving me with an unauthorised overdraft which now stands at £490. I shudder to think what the charges are going to be but I just can't pay it now... Santander have conned me! :mad:

I'd get it paid ASAP or (try to) move to another bank that will offer you an overdraft facility. According to this PDF document Santander charges £5 per day for an unauthorised overdraft, capped at a £95 a month. And there's a fee of £10 for each unpaid item.

BobQ

MarvinTheFly wrote: »

After another rate increase from £10 to £20 per month for using my £500 overdraft I was offered an upgrade to switch accounts from my premier to a 123 account. The 123 account just charges £2 per month and came with a free overdraft for the first three months. I did this to initially save me a few quid but also because I wanted some time to actually repay the overdraft and get my account in credit. Toda though I received a letter stating that my overdraft facility has been removed leaving me with an unauthorised overdraft which now stands at £490. I shudder to think what the charges are going to be but I just can't pay it now... Santander have conned me! :mad:

As I posted on another thread are you sure the free overdraft applies to transfers as well as new customers?

https://forums.moneysavingexpert.com/discussion/3983459

Edit: I do agree that the difference between the new and existing customer options is not made clear on the main page which states you get the same benefits. If this is the reason why your OD has been withdrawn, its certainly worth claiming they have failed to make it clear and the website is misleading.

Edit: Also the 123 is not suitable for those with regular overdrafts as reviews make clear.

http://www.moneysupermarket.com/c/news/focus-on-santanders-123-current-account/0013631/

BobQ

BobQ wrote: »

As I posted on another thread are you sure the free overdraft applies to transfers as well as new customers?

https://forums.moneysavingexpert.com/discussion/3983459

Edit: I do agree that the difference between the new and existing customer options is not made clear on the main page which states you get the same benefits. If this is the reason why your OD has been withdrawn, its certainly worth claiming they have failed to make it clear and the website is misleading.

Edit: Also the 123 is not suitable for those with regular overdrafts as reviews make clear.

http://www.moneysupermarket.com/c/news/focus-on-santanders-123-current-account/0013631/

Or as indicated by Irish Gypsy on:
https://forums.moneysavingexpert.com/discussion/3827691