RBS withdrawing my overdraft facility??!

lmfao

Hi, I'm new here so hopefully have posted this question in the correct place.

I was horrified to receive a letter from RBS who I hold a business account, current account, loan and mortgage with that they are withdrawing my overdraft facility. The letter is from their Manchester Business Centre, and the top of the letter said urgent action required. It listed all of my accounts, loan and mortgage at the top. The letter didn't specify which account it was referring to, but surely it doesn't mean all of them? It said I hereby have 30 days notice of my overdraft facility being withdrawn due to concerns about my account. I tried calling the number today but it was closed for the bank holiday.

Basically what I would like to know is whether anyone else has experienced this and surely they aren't referring to withdrawing my mortgage facility??? I have a 3k business overdraft, and a £500 personal overdraft. The letter is from their business centre so I would assume they are referring to my business account but if this is the case why list all of my accounts?

I have missed a couple of my loan repayments and had several direct debits returned which must be what they are concerned about. I will call them first thing tomorrow but wont sleep tonight worrying about it so wondered if anyone can put my mind at ease now about what this actually means?

ses6jwg

It means they are withdrawing your overdraft facility which are entitled to do. If you have missed a couple of loan payments that is likely to be why as you are now seen as a high risk customer.

lmfao

I see, thank you. I need my overdraft facility and at present have no means of paying it off in one go so should I open an account elsewhere and transfer my banking there before the 30 days are up? I was thinking about switching anyway as my new relationship manager isn't much use.

chanz4

switch quick as a default is likely to follow, very soon

Twister84

Withdrawing facilities is advised by the lending units, and is usually the last resort - but surely you were sent some correspondence asking you to contact them to let them know about your circumstances?

pmduk

I suspect if your finances are in a state that lead RBS to take this step you're gonna find it difficult to find another bank to take on you and your overdraft. The most you can hope for is to persuade them to allow you to reduce you overdraft gradually. Then start spending less than you earn!

xrjtg

lmfao wrote: »

surely they aren't referring to withdrawing my mortgage facility???

No, you're safe there. They're within their rights to withdraw the overdraft facility at any time, but the mortgage is completely different: you'd have to be severely behind on repayments before anything on that level could happen.

Kicked_Again

In 2008 when RBS went crash, they hauled in everyone that had a dormant overdraft (someone who uses it and never pays it off and they know they have you over a barrel) my overdraft and any mortgage arrears and forced me into a high interest rate loan knowing that I could not afford it. They also charged £540 for the privilege of printing a document for me to sign. Basically they haul in dormant overdrafts to shift debts on balance sheets to manufacture figures and someone gets a bonus for it. FOS will do nothing, even if you cant afford it. They only way to win is to go in mass to the FSA. But as the financial industry can do what the want, it will be a tough fight unless we can gather very large numbers that have been treated the same. They are within their rights and they know, and they can do what they want anyway and get away with it, as well as paying themselves a bonus for the privilege. :mad:

BugsyBrowne

chanz4 wrote: »

switch quick as a default is likely to follow, very soon

I thought defaults were issued only when the bank got no correspondence back from the customer and letters were ignored which is a long process.

CLAPTON

15 month old thread?

BugsyBrowne

CLAPTON wrote: »

15 month old thread?

Fu*k I didn't even notice.