Not allowed to reduce my overdraft in stages?!!

mpoker84

So Im going through my online banking with Santander, and decide this month I can afford to drop my overdraft limit by £50 - from £800 down to £750....or So i thought.

My mission is to get my overdraft back to £0 - but it doesn't seem that the bank is that willing to help.

When I try to complete this online, It doesn't allow me to do this, and when I attempt to do it over the phone, I am told that my overdraft has to be either £800 or £0 - but no where in between.

This seems odd to say the least - and definitely annoying. The bank were happy to let me increase the overdraft in increments back in the day when I fist got it but not now.

Has anyone else had a similar experience - or got advice on whether this is allowed by the banks?

Just trying to clear my debts, and this just seems like another hurdle has been thrown in my way :mad:

cottonhead

I tried to do the same and it wouldnt allow me to do so online but when I phoned they were fine about it. They couldnt set an automatic reduction so I have to phone them each month but they allow me to do it. I reduce by £50 a month and I am with Lloyds. I would phone and ask again - sounds like the advisor didnt understand.

Blackpool_Saver

They dropped mine by 1500, told me it was in 6 weeks time, now that makes you do it lol

mpoker84

Hmmm 0 just tried again and the same result! They are telling me its got to be £800 or £0

glasgowsaver2011

keep it open then, but put the money to pay it off in a jar or separate account

and in 16 months walk in with 800 quid pay it off

Gordon_Hose

You can reduce it by £50 a month yourself. Just don't spend the last £50 each month.

elymum81

Halifax set up a reduction plan for me a few years ago where by they reduced it by £50 every month. This worked well for me. The only downside was they wouldn't reduce it to a level which I wanted, it HAD to be reduced to zero.
Thats pretty bad they won't do this for you or even reduce it by a couple of hundred as you request - its not like you're asking for more!

Sailmakers

The reason it won't let you is because your preferred overdraft limit ( the desired overdraft limit santander want to give you) is less than £750. You can check what it is by going to a branch or via telephone banking. For example, if the renewal date on your OD was 01/05/2012 and the desired limit was £300, your OD would go down to that amount on that date. Because £750 is higher than the renewal amount it won't let you. If you paid off £500 it would. It may seem backward because you are still trying to reduce it but that's how the system works. Hope that makes sense.