Natwest declined REDUCTION to overdraft...

taloolah71

The geniuses at Natwest have a glitch on their online ovedraft system. I tried to reduce o/d from 1000 to 750 - and it declined! and did a credit search! grrr. can i get them to remove it?

dotdash79

I would write a letter to raise a complaint about it, and state that you would like the overdraft reduced and the credit search removed.

Mind you does it warn you that it's doing a credit search for a reduction?

stclair

NatWest will credit search you to reduce your overdraft this is clearly detailed in the T&Cs you arranged to when making the change.

As effectively they are taking the old one away and giving you a new one.

Plus as you application was declined the bank now may think you are no longer eligible for an overdraft.

Errata

An overdraft facility doesn't have to be used.

taloolah71

Hello all responders. Thank you for responding. I don't use the overdraft at all - hence why I want to reduce it. Its on an old account which I only use to pay in foreign currency dividends. I have had the account for 10 years, using it as stated above for the last four.

I have not changed my circumstances and pay in way more than that in my dividends so its not as though they dont see the income. Even the online chat chap thought it was odd. I saw that they would do a check - I am simply miffed that they did a check then the system cocked up.

I've now spoken to the loan department who have apologised, made the adjustment as requested, and have told me that they will de-register the search - so quite happy now. Although will keep a check on the credit agencies to make sure they do just that.

MoneySaverLog

So the safest move is not to reduce it. Seems a bit backward in going forwards :-)

Hominu

I've never understood why people do this - they have a £1000 overdraft which is costing them nothing, and they want to reduce it which involves cancelling the old one and applying for a new one, which involves a credit search.

You never know what is around the corner, if your car breaks down (or your boiler packs up, etc) and you need that £1000 overdraft, you can now no longer have it and you'll be into unauthorised overdraft territory and horrendous charges.

I have a £1000 overdraft on an account and have never used it in the last 10 years, but I wouldn't dream of cancelling it, just in case.

You-kip

Why anyone would reduce their Overdraft is beyond me.

stclair

You-kip wrote: »

Why anyone would reduce their Overdraft is beyond me.

Youll be suprised the amount of people that think its benifical to them when it really is not. I work in lending myself and come across this every day :eek:

taloolah71

As i said - its no longer my main account. I don't make payments from that account. Ergo - I don't need an overdraft. I have a perfectly good, unused, £2800 overdraft on my main current account. Simples

opinions4u

You-kip wrote: »

Why anyone would reduce their Overdraft is beyond me.

Many people (and the OP is not one of these) think an overdraft limit or a credit card limit is a compulsory spending amount that has to be hit within a short timescale.

They think that by reducing it they will spend less. Unfortunately it merely accelerates their journey to the PDL companies.