Santander and Overdraft reduction

interscope

I ve recently received a letter from Santander, with no explaination, reducing my £1500 overdraft limit down to £50 in 5 weeks time.

What seems particularly difficult and I wondered if other people had experienced similar problems, is it's impossible to get anywhere with Santander or speak to anyone who can make decisions.
The computer seems to rule everything.

Intially I spoke to telephone banking, who said they weren't aware of the overdraft limit reduction, and probably wouldn't be until after it had been implemented so couldn't help. They suggested I go into the branch, which seemed odd since it was an old A&L Premier Direct account which isn't associated with a branch.
Anyway local branch tried to help, saying could understand what problem was as I operated account fine and occansionally used the overdraft. They said all they could do was appeal.
5 days later, found you can't phone any branch, goes through to telephone banking. So had to go into branch again. Saw same person who told me appeal was rejected with no reason, which he thought was strange.
Offered to appeal again, but I said no point, can I just speak to the department which makes the decision. Basically no, as even the branch can't speak to them.
Left it with the branch manager who said he would email details to underwriters or something like that.

So disgusted that you just can't get a straight answer from anyone. Hardly an approachable, easy to contact bank.

So think I will take my business elsewhere, but just wondered what other people's experience were?

BreamoreBoy

Search this site and you will find Santander castigated umpteeen times a day. Boot 'em into touch.

rb10

Your T&Cs will state that the overdraft is repayable on demand. This is standard wording used by all banks, and gives them the right to reduce (or even remove completely) your overdraft, should they decide to.

You were given the correct advice, in that if you feel that a decision is wrong, you should appeal it. You were given a perfectly straight answer ('no'). It may not be the answer that you hoped for, but it's definitely a straight answer.

All that you can now do is:

1) Order a copy of your credit file - this costs £2. Make sure that everything on there is correct. Any mistakes could have contributed to this decision; or
2) Switch to another bank ... BUT be aware that the other bank may not give you the overdraft that you hope for, especially if there is any adverse data on your credit report.

ses6jwg

All A&L overdrafts have now moved onto the Santander internal scoring system and they are reviewed on a month by month basis.

They are based on your credit score and your account turnover (minimum and maximum balance each month, monthly funding), as well as your account management.

An overdraft is a privilege not a right.

Tupperware_Queen

are you up to your limit? if I were you I'd switch accounts asap, a new bank will usually honour your existing facilities...just don't tell them its being reduced

interscope

@ rb10 Thanks.
I have checked two of the three credit reference agencies, no issues. So agree, best thing to do is move. But still interested in if this has happened to others, and what the service from Santander has been like.

interscope

Thanks for comments, accept that Overdraft is repayable on demand and completely at Bank discretion.
My main concern wasn't with the overdraft itself, as I can go elsewhere. But more with Santander and there lack of customer service.
I Agree, they followed correct procedure in writing to me, just felt it was a little strange to make that decision after many succesful years with A&L and an account that has always been operated well (Banks words) and account behaviour hasn't changed recent.
So as a customer, I think most of us would then want to speak to the bank to see what they think the problem is and correct it if possible. That's where my issue with Santander and their customer service start:
1) Phoned number on overdraft limit reduction letter, takes you through to telephone banking. They say they cannot help. Must go to branch. I say, A&L direct accounts didn't have a branch, but telephone banking says thats all changed now, have to go via branch.
2) Try to phone branch but can't, number takes you back to telephone banking. When I visit branch they confirm this, you cannot phone them directly. Have to visit in person!
3) Visit the branch, and they say they have no control over financial decisions, all handled via computer and they CANNOT speak to anyone who makes the decisions directly.
4) They suggest they make an appeal and head office will probably over-turn this or at very least state a reason why they can't.
5) Branch don't phone me back as agreed, so have to visit branch again. Appeal is rejected, branch think this is strange as normally reason is given. Look at my account and don't know why it would be a problem, but again even branch manager CANNOT speak to anyone who makes a decision. He doesn't want me to leave Santander and suggests he emails head-office to try again. Not sure I can see the point.

So as rb10 correctly said, my only option is to go elsewhere. But I just can't believe how absolutely crap Santander's customer service is and how difficult it is to speak to anyone who can make decisions. A&L wasn't like that!
Surely people are just going to keep on leaving Santander until they become more approachable.

YorkshireBoy

interscope wrote: »

...I just can't believe how absolutely crap Santander's customer service is and how difficult it is to speak to anyone who can make decisions.

If you're unhappy with the service provided tell them...

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1210607166846&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateA2

BreamoreBoy

interscope wrote: »

@ rb10 Thanks.
I have checked two of the three credit reference agencies, no issues. So agree, best thing to do is move. But still interested in if this has happened to others, and what the service from Santander has been like.

Santander don't give a service.

BreamoreBoy

interscope wrote: »

Surely people are just going to keep on leaving Santander until they become more approachable.

Biggest bank in Europe with sales & marketing budget to match will always replace lost customers. If I look in a mirror I see a mug who got suckered by them

baileysonice_2

Does anyone know if this affects your credit rating and will closing the account before the reduction takes place stop the credit file record being added to? I don't see why they have reduced my overdraft, never use it and regularly pay in at least £2k pm!! Sounds like you don't get anywhere with the bank itself! Moving my Direct Debits today!