Reducing overdraft?

merked

Hello,

I'm currently paying off a credit card and aim to pay off an overdraft I have with alliance and leicester. Previously when it was A+L I was able to pay the OD off month by month. Initially I was told I could set up a regular payment on the 1st of the month. then it stopped and I was told I would have to do it manually...

then a month later I was told that I can't pay it off at all, it's a "fixed" overdraft (even though I've paid off about £450 already with other methods) and I have to save the money and pay it off in full. This isn't great for my budgetting and not massively convenient for me. Surely when you're offering to pay something off the bank can't just decide how you do it can they?

Especially when I was previously paying it off in a way that suited me. I've tried to complain about 3 times but no response.

Anyone else had this problem? Is there anything I can do?

p1nkk1tten

I tried reducing my Santander OD to 0 from £1450 (so in full) but they even refused that... saying my od was still 'tied in' for a year.. they just want you to keep it and spend it, hence how they make their money. With fd if you want to reduce it at any time you can.. but you do have to call them (or log online) everytime to reduce it...

Sharon87

Well at least they don't charge you for doing so. HSBC charge if you change your overdraft in any way twice within 6 months. And I think this includes the annual review - but I need to double check that bit. I've just reduced my OD by £50 - every little helps, but won't be able to do this again for a while!

What you can do OP, is continue to pay into the overdraft, but not reduce the limit every time and have self control (something that can be hard!) to not go beyond the limit you set.

p1nkk1tten

I work for first direct, who are part of the HSBC... are you sure it's not just increasing or going over your overdraft they allow once every 6 months because with us, if u decrease it, it's free, and doesn't go towards your number of overdraft requests?? I dont know how HSBC work but i'da thought it'd b similar to FD.

merked

hi, thanks for the advice, thing is I won't be able to get the same overdraft at any other bank I'm assuming...

I switched to santander because of the interest free year, and at the time my overdraft limit was £1800, and I had to borrow £1800 to put in my account for 2 days to prove I could pay it off. I reduced it bit by bit to £1350 until I was told it was fixed. I'm assuming I won't be able to get the same overdraft elsewhere...or at least would have to borrow the money in my account again.

My main problem is that they've changed the terms without telling me half way through paying it off...I don't have any argument against that? If I can't remove it when I've saved up the money I guess I'll have to move account altogether. which is a bit silly by santander really...