Nationwide Overdraft cut without warning

Canary_Wundaboy

I used to work in a Nationwide branch so I'm familiar with dodgy selling tactics and unsavoury employees being less-than-honest with the truth but my experience today has taken the biscuit.

As a bit of background I'm a full-time employed graduate, 24 years of age with a decent salary, and I've been in continuous employment for 2 and a half years, during which time my Nationwide account has been my main current account.

After some rather poor money decisions (e.g. buying a motorcycle) and some non-fault expenses (moving from Norfolk to Surrey to find work), I ended up accruing a fair bit of debt, and about 10 months ago decided to get myself sorted out. I've managed to pay about £2200 back to a generous family member who lent me cash to buy a car and £1000 back to Lloyds to clear my student overdraft. Up until last week I had an authorised overdraft of £1850, a credit card with £2400 limit and my car finance.

So, today I go to buy my lunch and my debit card is declined twice. I walk out of the store (thankfully had my credit card with me) and after calling Nationwide, am shocked to hear that they've cut my overdraft from £1850 to £500. They told me I'd been sent a letter (never received), after some negotiation they agree to reinstate £1500 and reduce it by £200 each month.

The really annoying thing for me is that I consider myself to be a 'good' borrower. I've never gone over my overdraft limit or my credit card limit (single exception being a billing error by Admiral Insurance, refunded and costs paid within 3 days), my DDs are all up to date, and it was only 2 months ago that Nationwide called me up to extend my credit card limit from £2k to £2400 due to my credit situation!

The only thing that's changed in the last 2 months is that I paid off my Lloyds overdraft and stopped using my credit card for purchases, just paying £300-400 off it each month in an effort to clear it quickly. I'm seriously annoyed that, just when I feel I'm getting a hold of my finances, my financial provider sees fit to come in and cut my allowance without warning. The cynic in me reckons they want me spending more money on my credit card so have cut my overdraft to prevent me spending on my debit card, but maybe that's being really pessimistic?!

At least now I know what the BS stands for, and it's not "Building Society"!

innovate

Seems Nationwide took a look at your Credit Reference agency files and decided that your debts of £9,830 do not warrant more than a £500 overdraft in future.

Don't think I have seen you saying how much you pay into your Nationwide account every month, so I wouldn't blame Nationwide for reducing your credit.

Canary_Wundaboy

My salary is paid into that account (just under £1500), of which £700 is paid out via DD/SO to clear outstanding debt. The rest goes on bills etc, but I always have £50 spare at the end of the month and my overdraft balance has been reducing each month.

I'd understand if they'd taken a look and decided to reduce my credit, that's fair enough, what I can't understand is how under 2 months ago they phoned me up to offer me more "pre-approved" credit, and the only thing that's changed since is me paying off debt and reducing my available credit by £1k by paying off and closing Lloyds account?!

Doesn't make any sense to me.

innovate

you have no choice but to pay off your debts

Canary_Wundaboy

innovate wrote: »

you have no choice but to pay off your debts

Which I agree with, and am doing, it would just be a lot easier if they didn't move the goalposts!

MABLE

QUOTE I used to work in a Nationwide branch so I'm familiar with dodgy selling tactics and unsavoury employees being less-than-honest with the truth but my experience today has taken the biscuit. unquote.

Very disappointed to note the above. We have always used the NW in Reading and found them brilliant. However by what you say it seems very unfair the way they have treated you. I always thought they looked after students and graduates in the hope you will be high earners in the future.

With us we have 3 current accounts with 3 difference banks so if any of them get out of line we have 2 backups.

My advice to you is complain to their HO.

le_loup

C'mon MABLE, get with the program.
50% of young people are graduates these days. Should they all be allowed to behave badly?

Savvy_Money

Nationwide are quite strict with overdrafts - any sign of exposure to more debt or any sign of an increase in risk they will immediately reduce. I once had a £1000 overdraft with them and I inadvertently went over by £25. I immediately repaid the full overdraft amount but I had a letter a few days later to say it was reduced to £500. I took it on the chin as I had technically broken their t&c's. To be fair to the OP they should have provided at least a month's notice - they did with me!

innovate

Savvy_Money wrote: »

To be fair to the OP they should have provided at least a month's notice - they did with me!

Only 14 days, according to the T&Cs

20. Any overdraft that we give you can be immediately reduced or withdrawn by us and all overdrafts are repayable on demand. We will aim to give you at least 14 days’ notice before reducing or withdrawing your overdraft or demanding repayment.