NatWest - Negligent By It's Actions?

Hereward

I don’t believe that the bank was negligent. It saw that your relative was a good customer and decided that, as they have a regular income, they could have an enhanced overdraft facility. When the limit was raised, both times the bank sent her a letter stating what they were going to do (just because she does remember receive on for the first rise, doesn't mean she didn't get one). I think it would be in better if banks, and building societies, wrote to customers and stated that they could have an increase if they wanted rather than automatically putting it up.

To help reduce the risk of your relative getting into trouble again, could you teach her better budgeting skills so that the overdraft buffer is rarely used?

Loobeylou

Hereward wrote: »

I think it would be in better if banks, and building societies, wrote to customers and stated that they could have an increase if they wanted rather than automatically putting it up.

To help reduce the risk of your relative getting into trouble again, could you teach her better budgeting skills so that the overdraft buffer is rarely used?

I agree with you on that point - surely if a person wished to increase their overdraft then the onus should be on them, not the bank. And to put it into perspective, I have had a similar account with the Halifax for numerous years and not once have they tried to increase my overdraft.

And yes, I am doing what I can to re-educate her in the budgeting department!

Hereward

Loobeylou wrote: »

I agree with you on that point - surely if a person wished to increase their overdraft then the onus should be on them, not the bank. And to put it into perspective, I have had a similar account with the Halifax for numerous years and not once have they tried to increase my overdraft.

I'm surprised that NatWest doesn't call your relative in for an account review each year (or perhaps the do, but she just hasn't gone). These would be an ideal time to discuss her overdraft facility with her "account manager" and explain that she doesn't an overdraft larger than £50.

Increase to limits is a difficult area because if the account provider informs the holder that they are increasing the limit, then it could be deemed that the provider is irresponsible. On the other hand, if the provider informs the holder that they could increase their limit, the same accusation could be thrown. It's not a simple win-lose situation for either party.

Loobeylou

Hereward wrote: »

I'm surprised that NatWest doesn't call your relative in for an account review each year (or perhaps the do, but she just hasn't gone).

Indeed she has been called in for account reviews on more than one occasion, and has gone - the last one was prior to the overdraft limit being increased to £1050.

Due to our meeting with her bank manager twenty months ago, she thought that the overdraft was still standing at the £50 limit, (and she was not overdrawn at the time of the reviews). She has informed me that it was not mentioned on any occasion by the NatWest members of staff.

And incidentally, her overdraft limit is not mentioned on any of her statements - I've checked!

regularsaver1

Natwest seem to do things differently than my bank

my statements mention my overdraft limit

and they do not increase my overdraft without me asking