Santander reducing Overdraft limit

GLex

Im currently a student and have been living off my overdraft for the past couple of months. I have a £2000 overdraft limit (which is interest free), and im pretty much at the limit right now.

Out of nowhere, Santander has just sent me a letter telling me they are reducing my overdraft limit to £1250 on Septermber 1st, although they give no reason why.

This seems extremely unfair to me. Ive been a student for 4 years now, and have always had an interest free overdraft. This is the first time i've actually started to live in it, and reach anywhere near the limit and all of a sudden they reduce it and expect me to come up with £750 in a month before I even get my student loan (due to be paid at the beginning of October).

Is there anything I can do about this? I start a new job on Thursday but even then I don't think I would make enough to pay this off by September 1st.

Thank you for anyone who gets back to me

robpw2

i suggest you contact santandar and see if you can get a stay of execution untill the date your loan comes in send them a copy of your entitlement letter showing the date of payment

KingElvis

Overdrafts are always repayable on demand. Lucky they didn't pull in more if you live at your limit.

pcombo

GLex wrote: »

Im currently a student and have been living off my overdraft for the past couple of months. I have a £2000 overdraft limit (which is interest free), and im pretty much at the limit right now.

Out of nowhere, Santander has just sent me a letter telling me they are reducing my overdraft limit to £1250 on Septermber 1st, although they give no reason why.

This seems extremely unfair to me. Ive been a student for 4 years now, and have always had an interest free overdraft. This is the first time i've actually started to live in it, and reach anywhere near the limit and all of a sudden they reduce it and expect me to come up with £750 in a month before I even get my student loan (due to be paid at the beginning of October).

Is there anything I can do about this? I start a new job on Thursday but even then I don't think I would make enough to pay this off by September 1st.

Thank you for anyone who gets back to me

You must not being making enough credits into your account. Which is why there reducing it.

paulmcerlean

There is nothing unfair here, can you give a reason why you think it is unfair?

If you dont pay enough in generally to bring your account into the black each month, you can expect this to happen. And keep happening until you do.

GLex

paulmcerlean wrote: »

There is nothing unfair here, can you give a reason why you think it is unfair?

If you dont pay enough in generally to bring your account into the black each month, you can expect this to happen. And keep happening until you do.

Ive had this overdraft for 4 years now, and every year Ive been in the same financial situation where I get 3 yearly installments paid into my bank from the student loans company which has always been sufficient enough to keep my overdraft limit where it is.

Maybe its not unfair, but its strange how when I actually do use my overdraft (I don't live in my overdraft, its just been these past couple of unlucky months) that they decide to lower it.

Thanks for the advice though, I think I'm just going to book an appointment with them and see if I can extend the deadline.

Radish72

Do you have a student account with them, I'm wondering if after 4 years they are now classing you as being no longer a student so withdrawing the overdraft .

When you have the meeting with them tell them that you would like it reduced gradually each month (even better if you take a budget with you to show them how you will pay back x amount each month)

A bank did this to me when I finished uni, after repaying some of it each month, a month after being at no overdraft they sent me a letter saying I now had a £2000 overdraft facility (this was higher then the original one)

ses6jwg

All student accounts run for a standard 3 year term.

They are reducing your OD now as it is moving onto the Graduate account, and it reduces year on year after that.

By all means visit a branch but overdraft decisions are generated by computers not by real people. The staff in the branch have absolutely no discretion on overdraft decisions over and above those set by the computer system.

It is pointless visiting the branch before 1st sept as branch cannot do anything.

ASll they can do after this date is submit an appeal to the underwriters and "hope for the best"

Hasty1991

Providing you find a nice, caring individual willing to look at your request then make sure they check everything they can do. Ask them to check your correct course details were input when you first opened the account - although standard courses(and accounts) run for three years - it can be extended for up to five.

Have you changed course or university and not updated Santander?

GLex

ses6jwg wrote: »

All student accounts run for a standard 3 year term.

They are reducing your OD now as it is moving onto the Graduate account, and it reduces year on year after that.

By all means visit a branch but overdraft decisions are generated by computers not by real people. The staff in the branch have absolutely no discretion on overdraft decisions over and above those set by the computer system.

It is pointless visiting the branch before 1st sept as branch cannot do anything.

ASll they can do after this date is submit an appeal to the underwriters and "hope for the best"

They moved me onto a graduate account last year, and I had to go in and show them proof that I was continuing my studies for a further 2 years. They scanned and recorded my university documents, and changed me back to a student account so I should hope this isn't the same issue again. :undecided

Ill give them a visit anyway, all they can do is say no. Thanks.

IrishGypsy

GLex wrote: »

They moved me onto a graduate account last year, and I had to go in and show them proof that I was continuing my studies for a further 2 years. They scanned and recorded my university documents, and changed me back to a student account so I should hope this isn't the same issue again. :undecided

Ill give them a visit anyway, all they can do is say no. Thanks.

Best of luck, but I doubt that the underwriters will extend the term, I've tried this before for another customer in the past (in the same scenario), and they simply stated that they got the OD term length as per the T's and C's (4 years for studying, then Graduate for a year and then reduced every year after that) and wouldn't extend it any further.