Lloyds don't have an answer yet :(

theTechnician_2

Hi all,

I got a letter from Lloyds on the 21st Dec saying that my overdraft limit is to be changed, but gave no details on what was changing and how. So, I phoned Lloyds and (eventually) spoke to someone who said it was an automated letter, and no changes shall be made, but I may be contacted around Feb by my local branch for an account review. So I thought, that's ok, Christmas can carry on without fear of money.

Today, I signed into my online account only to find my overdraft limit has dropped £600 (I've only managed to get online today). I promptly phoned Lloyds to see what was going on. I explained the above, and the lady said that was true, it shouldn't of changed and couldn't see any reason for it to change. The kind lady then went through the process to put the overdraft back to what it was, only to be declined. She said there's no reason for the declined message, so she was unable to advise or make any changes. So I said I'll get in contact with the local branch and arrange to see someone.

The most annoying thing is I have payments to go out on Tuesday, so that leaves two days to sort something out (if at all possible). Why this has happend, I'm not too sure, and I don't think who I spoke to does either.
I've never gone over my overdraft, the only change (finance wise) in the last few months is my salary went up at the begining of Dec ... but the letter I got was dated 20th Nov (no idea how it took almost a month to get to me).

Joe_Bloggs

Welcome to the forum.

From
http://www.lloydstsb.com/current_accounts/personal_overdrafts.asp

All overdrafts are always repayable on demand. This means that we can ask you to repay all or part of your overdraft (and any interest or charges) at any time, even if we have agreed a period for the overdraft with you. We can also reduce your overdraft limit at any time. We will normally give 30 days notice before making any changes.

It would have been nice to get the thirty days notice but the way they phrase things it is not required. I would have thought that this kind of treatment would be against the spirit of 'treating customers fairly'.

If you perpetually rely on your overdraft then you are forever at the bank's mercy. They may well make changes that create lots of charges when you have no time left to prevent them.
Am I cynical for thinking that they are just after your money ?
J_B.

theTechnician_2

Thanks J_B

Unfortunately you're right, I'm pretty much at their mercy. It's just a pain that it's happened at this time of year, and I was paid before christmas to cover Jan so its a stretch to make the money last as it is.

I went to see the bank manager before New Years, and he tried to amend my overdraft too. Again, no luck at changing it. It seems I was failing at a credit check, but couldn't see why. He suggested that I do a check to check it's all ok, and he would keep an eye on my credit score and let me know as soon as he can change the limit.

I did a credit check as soon as I got home, and saw that everything is green and (from what I can see) there's no problems. Everything is paid for and up-to-date. No searches have been made against me. So other than the current economic climate we're in that is dictating who can and can't extend overdrafts, I can't see a reason for why my limit won't change.

I was thinking of calling Lloyds again today, just in case there's a few working days from when a overdraft limit can be changed.

paulmcerlean

They are likely scoring you for the new overdraft internally, and as you have been heavily using the previous limit, your internal score is very low thus stopping it.

Was your salary putting you into credit every month or was the overdraft keeping you in a negative or close to zero balance?

How many days per month is your account in credit?

How long have you had the overdraft?

theTechnician_2

They are likely scoring you for the new overdraft internally, and as you have been heavily using the previous limit, your internal score is very low thus stopping it.

I did wonder this, but thought why would they suggest getting a credit report from another company? I'm going to call them again today (hopefully), and see if there's anything else they can suggest if my credit score and report seem ok.

Was your salary putting you into credit every month or was the overdraft keeping you in a negative or close to zero balance?

Unfortunately, I've not come out of my overdraft (above 0) for a long time. I won't go into the details of why, but it's only the last 2 years I've managed to make a start on getting out of the overdraft. In the last month, I've had an increase of salary which means I'll be able to get into credit every month soon, but the bank manager said that shouldn't stop the overdraft limit change

How many days per month is your account in credit?

A very low 0

How long have you had the overdraft?

Have had it for many years, and I've never gone over the limit.

I can understand that as I'm in the overdraft they can change as much as they like (pretty much) as I'm more or less at a constant debt to them.
But it would be nice if they could give a straight answer as to why I can't go back to the previous limit or change the limit to maybe not as much. Instead of saying they don't know, or they can't explain why it cant change.