RBS changing account and removing overdraft with 30 days notice-is this allowed??

willo65

By putting the overdraft on a loan it won't increase your debt, just move it.

stclair

mellymell wrote: »

Hi there,

I have a graduate account with a £1000 overdraft limit (which I'm paying off) with RBS. This week I got a letter from them saying that because I graduated three years ago (I didn't but that's another whole argument with them!) They are changing my my account to a 'Select account'. Fine I thought, BUT with that, my overdraft reverts to £100 (in the small print) and this will be effective in 30 days. Now is it just me, or is this really bad?! I mean, who can get their hands on £900 to pay off their overdraft in 30 days?! I called my local branch who said they can't do anything, instead they have logged 'a concern' and someone will get back to me. What he did suggest was that I could take a loan out to pay my overdraft?! The point is, I don't want a loan, I am paying my overdraft off to get rid of my debt-I don't want to add to it! :mad::mad:

Now, I don't think this is right-they should at least transfer the full overdraft to my new account. Are they allowed to do this?

Any advice/thoughts will be appreciated.

OP you could speak to lending about getting a reducing overdraft so on a set date every month your overdraft will reduce by X amount until its paid off.

If you have had a overdraft maxed out for a long period of time they would suggest taking out a loan to pay it off.

Im not sure why the branch are logging a concern for you to be honest as overdrafts are repayable on demand. You need to speak to the customer lending centre really to discuss your options. They will be the ones to tell if you can keep your overdraft at its current limit on a new account.

willo65

Op, just a thought, are you sure the overdraft will be removed and it's not just the interest free threshold being reduced?