Santander removed overdraft overnight

mrsbris

My husband and I have a joint account with Santander. Overnight they withdrew our £500 overdraft. We are experiencing some financial difficulties and wrote to them about this. But with no negotiation or warning whatsoever they withdrew this facility and I am wondering about the legality of doing so. It now puts us in a situation where we have no money for the rest of the month to pay other debts, some bills, food for us and our children and childcare costs.

My husband spoke to the branch. The manager was perplexed as to why this had happened but we are still waiting to hear whether they will reinstate the overdraft facility.

I am really worried that they won't reinstate it. Does anyone have any advice how to deal with this one?

reclusive46

On the legality side of things, it does state in the terms and conditions that they can remove an overdraft at any time.

jalexa

mrsbris wrote: »

I am really worried that they won't reinstate it. Does anyone have any advice how to deal with this one?

While overdrafts are indeed "repayable on demand" the Financial Ombudsman Service has previously found that "in normal circumstances, we would still expect a bank to give a customer specific notice that it intended to withdraw an overdraft facility". [FOS Newsletter Issue 59]

So you need to accept you have no entitlement to a permanent overdraft, but also in "normal circumstances" you should have been given reasonable notice.

Give the "branch manager" a single time bound opportunity to resolve the issue then if not satisfied consider recourse to the Complaints procedure.

coldcazzie

Some good advice above, but in the meantime, I would start selling stuff to make some money for the things you need to buy.

BugsyBrowne

Why would any bank reinstate an overdraft to someone who's in financial difficulty.

Only saying but it seems Santander are making a wise desicion on their behalf which won't help the OP but banks are not a charity.

mrsbris

Having looked into it I do appreciate that they can take the overdraft away at anytime. Our financial difficulties are short term and we are on a tight budget each month, like many people are. By removing this facility overnight completely undermines our ability to pay bills etc thus leaving us in increasing financial difficulty. The amount of money paid into the account hasn't changed nor the amount being expended. We were pre-empting any issues by responsibly writing to them about our financial situation and instead they respond like this.

Although I appreciate banks are not charities, they are businesses and I am their customer. It has to work reciprocally. Surely there must be a possibility of some negotiation in this circumstance. I was seeking anyone's advice of negotiating this?

BugsyBrowne

mrsbris wrote: »

Having looked into it I do appreciate that they can take the overdraft away at anytime. Our financial difficulties are short term and we are on a tight budget each month, like many people are. By removing this facility overnight completely undermines our ability to pay bills etc thus leaving us in increasing financial difficulty. The amount of money paid into the account hasn't changed nor the amount being expended. We were pre-empting any issues by responsibly writing to them about our financial situation and instead they respond like this.

Although I appreciate banks are not charities, they are businesses and I am their customer. It has to work reciprocally. Surely there must be a possibility of some negotiation in this circumstance. I was seeking anyone's advice of negotiating this?

1. Never tell or mention financial difficulties to your bank as they can or will make your position even worse then it already is as you've discovered.
2. Move to another bank.

3. Bank loyalty & relationships are long gone for customers unless your Absoulutly loaded where your making the bank money.

innovate

Wouldn't a loan be a lot cheaper than an overdraft? You'd have complete peace of mind that, as long as you make the agreed repayments in a timely manner, the money will not be pulled from you.

Though of course, both overdraft and loan are only lipstick on a pig. The only way to solve your issues for good is to live within your means. Either reduce your spend, or increase your income.

You might get some good pointers on the Debt-Free Wannabee board, , and for any instant advice, you could try the CCCS, which is a bonafide organisation, available 24 hours a day.

Avoid payday loans (the likes of Wonga) at all cost - they will cause you hellish problems.

CLAPTON

what exactly did you write and say?

that you were likely to go over your OD limit or what?

mrsbris

Innovate - you're probably right about the loan but I don't really want to borrow any more at the moment! We won't even need a much larger od - possibly £200 extra for 3 months at which point we could pay it back.

Bugsybrown - obviously we learnt the hard way!

innovate

mrsbris wrote: »

Innovate - you're probably right about the loan but I don't really want to borrow any more at the moment!

Well, you do - - you say you want your overdraft back. Overdraft money is borrowed money.

Go into your bank's branch and ask for a £200 loan, if that is what you need, and if you are 100% certain you will pay it back (say over 3 or 6 months).

Alternatively, can you ask family or friends to lend you the £200 for a few months?

EDIT: actually, not sure whether the problem is over £200 only - - so I come back to my earlier suggestion - You might get some good pointers on the Debt-Free Wannabee board, , and for any instant advice, you could try the CCCS