Santander refuse to reduce my OD limit!!!

partridge_pie

Hi

Have just rang Santander to reduce my OD limit from £1300 to £500 and they have declined!!! Why? I don't use it anymore and am paying it down - they said it is because I am overdrawn - is this mad????? I thought I was a customer!!

Tixy

Very odd, assuming that there are not DDs due to go out that would take it above £500?
Do you have online banking for this account? might be worth seeing if you can reduce it online? or going in branch?, or even calling again in the hope that you get a different answer!

FireWyrm

Cancel the account? Tell them why. Better check your DD's and make sure you're not going to bounce any this month.

lilac_lady

I have an overdraft on my current account but have never used it. It's there in case there's an error made by the bank or pension provider so that my DDs and SOs will always be paid.

You don't have to use your overdraft, just keep it as an account safety net.

partridge_pie

As I am £426 overdrawn I cannot cancel the account although I may consider transferring the debt somewhere else then cancelling it after this incident - thanks for your continuing replies.

partridge_pie

By the way does anyone know how you change your log in ID??

timbstoke

Although you're reducing the overdraft, are you still using it as your main account? I.e. do you still have money going in and out of it? If so, that may be why they're reluctant to put you less than £100 away from your overdraft limit.

In honesty, it may be better to keep yourself a little overdraft availability for emergencies - if nothing else, it means any cash you try to keep aside for emergencies can go to a different debt. Maybe try to reduce it to £1000 for now, then to £500 when you've got less than £250 owing.

Be warned, some companies (*looks disapprovingly at First Direct*) charge £30 or so to change your overdraft limit, whether it's up or down. Which is why my overdraft is staying where it is until December, when it's up for renewal (also a £25 charge). At that point, I'll phone them telling them that no thanks, I don't want to renew my overdraft facility, so don't even think about charging me for it.

partridge_pie

Hi Timbstoke - thanks for helping - I dont use the account now at all as my wages go into my Barclays personal account - but no harm in keeping it I suppose - it just annoys me I cannot reduce a debt limit on my own bank account - will just keep paying down and then close I suppose - I like making frequent small payments and so far it has reduced the really quickly - it really works!!

Marco_Panettone

As it isn't an account you use is it really that much of an issue?

Keep reducing the debt, don't spend on the account and close it when you're clear.

partridge_pie

That's how I am looking at the debt as only numbers for now - helps me to be more positive about tackling it - plus whatever I sell is all replaceable in the future - most is in the loft and hasnt been out of there for a long time - so I musnt need it must I?

Concernedaccountholder

timbstoke wrote: »

Although you're reducing the overdraft, are you still using it as your main account? I.e. do you still have money going in and out of it? If so, that may be why they're reluctant to put you less than £100 away from your overdraft limit.

I tried to reduce mine by just £100, this was also refued. There is nothing in Santander's Terms & Conditions in Section 7 for Overdrafts pertaining to the terms of a request for reduction.

It only states that an overdraft may be paid off at any time, or if the bank wishes to cancel and, or amend the overdraft limit they "may" give you 30 days notice, but do not have too.

I'm referring my complaint regarding the overdraft facility to their complaints department. They've got 8 weeks to provide me with a satisfactory response before I go to the Financial Ombudsman Service.