Overdraft increase refusal???

sunflowerjazz

Hi guys, newbie here first time posting!

I have a basic account with Lloyds TSB with an overdarft. I do use my overdraft pretty much every month and quite often go over into an unplanned overdraft serving me with lots of bank charges. Not ideal I know but unfortunately life circumstances sometimes dictate this activity. Anyway I wanted to increase my overdraft by £70 in part to try and avoid going over into an unplanned overdraft and avoid these heavy charges in the future but my question is if I ask for an increase is it possible once I've 'flagged' my account up that they might look into my current overdraft and not only refuse to increase my overdraft but withdraw it altogether??! I wanted to know if this was a possibility before causing myself more grief! Any advice would be great Many thanks.

Escorcio

It's very doubtful they'll agree to an overdraft increase as you've been going over your current limit.
Applying for an increase will not cause them to review/ remove your current overdraft

BugsyBrowne

sunflowerjazz wrote: »

Hi guys, newbie here first time posting!

I have a basic account with Lloyds TSB with an overdarft. I do use my overdraft pretty much every month and quite often go over into an unplanned overdraft serving me with lots of bank charges. Not ideal I know but unfortunately life circumstances sometimes dictate this activity. Anyway I wanted to increase my overdraft by £70 in part to try and avoid going over into an unplanned overdraft and avoid these heavy charges in the future but my question is if I ask for an increase is it possible once I've 'flagged' my account up that they might look into my current overdraft and not only refuse to increase my overdraft but withdraw it altogether??! I wanted to know if this was a possibility before causing myself more grief! Any advice would be great Many thanks.

As lloyds internal scoring only goes upto 9 which is their worst customer I would think by what you've said they've made an exception and give you a 10. On their CPU systems in big letters it says DO NOT GIVE THIS CUSTOMER EVEN A CUP OF TEA.

davethorp

The OP may even have the dreaded CPD99 marker on his account for going over which would mean all lending applications would automatically decline.

staffie1

Escorcio wrote: »

It's very doubtful they'll agree to an overdraft increase as you've been going over your current limit.
Applying for an increase will not cause them to review/ remove your current overdraft

I agree, but the fact that the borrower goes over their agreed limit could cause the bank to review or cancel the facility at any time.

OP: can anything be done to reduce your expenditure and thereby remain within the current agreed limit?

Escorcio

staffie1 wrote: »

I agree, but the fact that the borrower goes over their agreed limit could cause the bank to review or cancel the facility at any time.

OP: can anything be done to reduce your expenditure and thereby remain within the current agreed limit?

Indeed the constant abuse of his agreed overdraft could cause them to withdraw it, but an application to increase his limit in itself would not cause them to review/remove his current overdraft

sunflowerjazz

davethorp wrote: »

The OP may even have the dreaded CPD99 marker on his account for going over which would mean all lending applications would automatically decline.

What is CPD99??

From what I can gather it seems to be a win win situation for the bank as most months I have these charges on my account and every time I do they are paid, in full, on time. So essentially they are making their moneys worth out of me! I appreciate that my credit scoring will be low and would therefore probably have my request declined but the main issue for me was would this refusal warrant an overdraft overhaul and withdrawal. Unfortunately due to unforeseen circumstances there will be no change to my finances at present to stop the use of my overdraft (I'm sure I'm one of millions that fall into this category, without which the banks would lose a huge amount of their profit making anyway!) I appreciate any helpful advice however your comment is really quite rude BugsyBrowne and in no way helpful at all! Great introduction to this site that was!

meer53

Escorcio wrote: »

Indeed the constant abuse of his agreed overdraft could cause them to withdraw it, but an application to increase his limit in itself would not cause them to review/remove his current overdraft

I disagree.

An application to increase the overdraft facility is exactly why they would consider withdrawing the overdraft, and asking the OP to agree a repayment proposal with them. It is bringing the OP's problem to their attention. Thats what would happen where i work anyway (not Lloyds)

The OP needs to sit down and work out how to reduce their outgoings significantly.

callum9999

sunflowerjazz wrote: »

What is CPD99??

From what I can gather it seems to be a win win situation for the bank as most months I have these charges on my account and every time I do they are paid, in full, on time. So essentially they are making their moneys worth out of me! I appreciate that my credit scoring will be low and would therefore probably have my request declined but the main issue for me was would this refusal warrant an overdraft overhaul and withdrawal. Unfortunately due to unforeseen circumstances there will be no change to my finances at present to stop the use of my overdraft (I'm sure I'm one of millions that fall into this category, without which the banks would lose a huge amount of their profit making anyway!) I appreciate any helpful advice however your comment is really quite rude BugsyBrowne and in no way helpful at all! Great introduction to this site that was!

People often say they can't save any money but it's rarely true. Are you suggesting that if you cut even £10 out of your budget you'd die?

Of course it's not going to be easy or pleasant, but it's something you have to do to get yourself back in order. And will benefit you in the long term as you won't be paying out hundreds of pounds in fees. Short term loss - long term gain.

Ultrasonic

sunflowerjazz wrote: »

...I do use my overdraft pretty much every month and quite often go over into an unplanned overdraft serving me with lots of bank charges. ... Anyway I wanted to increase my overdraft by £70 in part to try and avoid going over into an unplanned overdraft and avoid these heavy charges in the future...

How big is your current agreed overdraft limit? You say you're using your overdraft 'pretty much' every month. Does this mean that some month's you are in credit? If so then I'd have thought it wouldn't take too much effort to manage your finances a little better so that a larger agreed overdraft would be unnecessary. If you were happy to share a few more details you might find some people here could help. (No promises though!)

davethorp

CPD99 is a marker that lloyds apply to accounts if there is something they don't like either in the account behaviour or in the feed they get from the credit file.

If you have CPD99 on your account any applications for further lending will be automatically declined regardless of internal or external score.

One way to tell if you have it is to log in to Internet banking and then click the link to upgrade your account. Also click the link to apply for a secondary current account. If the upgrade is met with a message about being unable to upgrade accounts online and the current account application is met with sorry we cannot offer you a secondary current account then there is a good chance you have CPD99 in which case there is zero point applying for the overdraft extension as it will auto decline