Declined Overdraft

Agricolae

As others have stated, the economic climate has made banks unwilling to go down the overdraft route. The days of offering customers £10k credit limits and £5,000 overdrafts are gone for now.

You should probably consider yourself lucky you didn't borrow to top up your ISA as you'd have lost out on more interest that way (probably).

I can say for certain that RBS will give a very general answer to your question about why they made their decision.

dalesrider

Purple_Rein wrote: »

I (wrongly) assumed that there would be no problem with my application for the following reasons:
35 year connection with RBS (dating back to Williams & Glyns)
Previous mortgage with RBS now repaid - the Bank still hold a Legal Charge over my mortgage-free property
Salary of £2k per month mandated to my RBS account
Previous loans repaid without difficulty
Never been overdrawn or had a payment refused
I hold a Fixed Term ISA of £10k with the Bank.

Has anyone else come across a situation like this? I feel bemused by the Bank's decision - and wonder if any guidance can be offered, in particular if the Bank continue to deny this facility to me. If this remains the case, I shall look to the Ombudsman for common sense to prevail!

Many thanks for taking the time to read this

Well your history counts for very little in terms of your request for a overdraft of such a large amount.

What will make a diffrence is your income. Which I guess is less than 4K a month.

They will not give you exactly how they work out any request. that is sensitive internal information.
I would also doub't that a complaint to FOS would do anything to help get the info.
As in this case the bank have done nothing wrong.

innovate

Purple_Rein wrote: »

Recently applied for an overdraft of £4k to enable me to make a payment of £5640 into an ISA account whilst waiting for arrival of funds (£11.4k) from a maturing Bond.

Overdraft = 19.89% EAR
ISA = less than 3% AER

Should you be greatful that your bank helped you not to make a move that would lose you money?

MABLE

Agricolae wrote: »

As others have stated, the economic climate has made banks unwilling to go down the overdraft route. The days of offering customers £10k credit limits and £5,000 overdrafts are gone for now.

You should probably consider yourself lucky you didn't borrow to top up your ISA as you'd have lost out on more interest that way (probably).

I can say for certain that RBS will give a very general answer to your question about why they made their decision.

Not for me. Mine is £10k.

YorkshireBoy

MABLE wrote: »

Not for me. Mine is £10k.

But when were you granted it?

MABLE

YorkshireBoy wrote: »

But when were you granted it?

It was granted about 7 years ago and is reviewed annually.

Also they wanted to decrease it about 3 years ago to £5k because of lack of use. However I went overdrawn by £300 and then received another letter advising as the overdraft is now being utilised they were happy for it to remain at the existing level.

Sailmakers

Winds me up when people think OD's are a god given right.

exel1966

Purple_Rein wrote: »

Has anyone else come across a situation like this? I feel bemused by the Bank's decision - and wonder if any guidance can be offered, in particular if the Bank continue to deny this facility to me. If this remains the case, I shall look to the Ombudsman for common sense to prevail!

1. So they didn't give you an O/D, you now want to throw your toys out of the pram like a small child because you think you have a god given right. Wake up and get real OR

2. Stop trolling !

Whatever hat fits, wear it!

Ombudsman :rotfl::rotfl:

Bob_the_Saver

Sailmakers wrote: »

Winds me up when people think OD's are a god given right.

When I see the APR many people pay I often say "Oh my God!"

XLsior

Purple_Rein wrote: »

So far, they have made a payment of £20 to me for the delay in responding

I suggest you wait until your funds hit your account, this £20 that has been gratia'd to you will more than replace the lost interest for not investing straight away (based on 3% ish anyways)