Nationwide Fexdirect Overdraft limit reduced

missmuddy

I have 4 Nationwide Flex Direct accounts. Two are fully loaded to gain the 5% interest while I use the other two for the free overdrafts (maxed out at £2.5K and £2k respectively) to gain interest 'elsewhere'. My partner is doing similalrly with 3 Flexdirect accounts. However, with 6 months still to go since our accounts were opened we have both received letters informing is that our overdraft limits have been reviewed and reduced to £250

"Having reviewed your account and wider financial management we cannot maintain your arranged overdraft at its current limit."

Needless to say, we're a bit annoyed about this. Although, yes, it is in the agreement that they can review the O/D limit at any time, my financial situation and therefore presumeably credit rating, hasn't changed at all since I opened the accounts. I've had one converstaion with someone who was unable to tell me very much; I'll try again, but I was wondering if anyone else had experienced this? Is it a case of them suddenly realising that people are 'taking advantage'?

grumbler

I think it's called 'abusing', not 'taking advantage'. And I think they always knew, not 'suddenly realised'.

Most banks will cut your overdraft limit if you 'max it out' and don't take any steps for repaying.

CRISPIANNE3

missmuddy wrote: »

I have 4 Nationwide Flex Direct accounts. Two are fully loaded to gain the 5% interest while I use the other two for the free overdrafts (maxed out at £2.5K and £2k respectively) to gain interest 'elsewhere'. My partner is doing similalrly with 3 Flexdirect accounts. However, with 6 months still to go since our accounts were opened we have both received letters informing is that our overdraft limits have been reviewed and reduced to £250

"Having reviewed your account and wider financial management we cannot maintain your arranged overdraft at its current limit."

Needless to say, we're a bit annoyed about this. Although, yes, it is in the agreement that they can review the O/D limit at any time, my financial situation and therefore presumeably credit rating, hasn't changed at all since I opened the accounts. I've had one converstaion with someone who was unable to tell me very much; I'll try again, but I was wondering if anyone else had experienced this? Is it a case of them suddenly realising that people are 'taking advantage'?

Unlike you I was not greedy and have two flex accounts. One for the 2.5K savings and one with an overdraft facility. I use the overdraft account on a regular basis but never go more than 60 percent into my overdraft even though it is free money.

You must admit you and your partner really were taking the pee.

Also I expect NW were more than slightly annoyed that customers like your good selves are maxing out the overdraft facility and then with no profit to them you are transferring the money to another institution

CRISPIANNE3

grumbler wrote: »

I think it's called 'abusing', not 'taking advantage'. And I think they always knew, not 'suddenly realised'.

Most banks will cut your overdraft limit if you 'max it out' and don't take any steps for repaying.

Surly they paid some credits into the overdrawn accounts each month.

pqrdef

missmuddy wrote: »

I have 4 Nationwide Flex Direct accounts. Two are fully loaded to gain the 5% interest while I use the other two for the free overdrafts

If you're going to borrow your own money, banks like to charge you, not pay you.

Oddly, you might have done better with 4 maxed-out overdrafts. A rare exception to the rule that they prefer to lend money to people who don't need it. Bankers' games are Alice in Wonderland territory.

I expect there'll be more of these letters. They aren't enforcing the 1-offer-per-customer rule, but they can use the 6-month review to clamp down a bit.