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Nationwide Overdraft Scam

Just want to warn people about opening a Nationwide Flexdirect account with free '12 month' overdraft. Today I have been refused a credit card because Nationwide recently put me on a repayment plan just 4 and a half months after opening the account last September and despite the fact I have never breached the agreed limit.

I have been told that they review o/d's at 6 months, but mine was reviewed 1 and a half months too early. Had they reviewed at the 6 month stage due on Mar 10, they would see it has reduced from -£1700 to -£700 approx (currently - £790). Surely this then would be considered well within the bounds of acceptable. This overdraft will in fact be paid off about 3 months before the 12 mth 0% period ends. This was always my plan and yet somehow Nationwide have seen fit to penalise me. For someone with a gold plated credit score as I have to be refused a credit card is a real kick in the nuts. They also told me, clearly, that making a repayment arrangement would not affect my credit score. It clearly HAS.

This is a warning to all financially diligent people considering a Nationwide overdraft that you too could have your credit score destroyed by them moving the goalposts and not adhering to their own t & c's. Absolutely dreadful bank in my opinion.
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Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    what was their response to your written complaint?
  • shortcrust
    shortcrust Posts: 2,697 Forumite
    Eighth Anniversary 1,000 Posts Combo Breaker Newshound!
    Financially diligent people wouldn't use an overdraft like that because they'd know that overdrafts can and are withdrawn without notice. Especially when used for longterm borrowing.

    What's a gold plated credit score?!
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    "gold plated credit score" - good one, if you are in reality Warren Buffett or Bill Gates then yes, your credit is probably good everywhere, but for normal mortals your credit is only as good as the institution assessing it thinks. And in this case not good enough. Now, that may be due to what Nationwide (who are not a bank) have done, so we're back to Clapton's question.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    Did they promise not to review it before 6 months or just indicate that that's when they usually review?
  • noh
    noh Posts: 5,827 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    jonwest wrote: »
    ................
    This is a warning to all financially diligent people considering a Nationwide overdraft that you too could have your credit score destroyed by them moving the goalposts and not adhering to their own t & c's. Absolutely dreadful bank in my opinion.

    Here is an extract from their T+Cs
    Did they not adhere to this?
    http://www.nationwide.co.uk/~/media/nationwide.co.uk/legacy/pdf/btp/P857_ImportantInformation-TermsAndConditions.pdf

    "22.
    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 not less than 14 days’ notice before reducing or withdrawing your overdraft or demanding repayment."
  • le_loup
    le_loup Posts: 4,047 Forumite
    OP, you may think the above comments harsh. However you introduced the word "scam". Clearly there is no scam involved and you know that. What is your reply to CLAPTON's question? A question only asked in order to elicit some facts rather than your rather pointless rant.
  • James_44_2
    James_44_2 Posts: 17 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I had an arrangement to repay a Nationwide overdraft, it didn't affect my credit score they just reduce it by a certain amount each month
  • iAMaLONDONER
    iAMaLONDONER Posts: 1,669 Forumite
    I'm rather disappointed, there's no scam to be warned of here!
  • jonwest
    jonwest Posts: 13 Forumite
    CLAPTON wrote: »
    what was their response to your written complaint?
    I am waiting to hear from them in reply to my written complaint. I HAVE been told by them that their overdrafts are reviewed after 6 months. They have not adhered to that, regardless of anything else they have adhered to.
    shortcrust wrote: »
    Financially diligent people wouldn't use an overdraft like that because they'd know that overdrafts can and are withdrawn without notice. Especially when used for longterm borrowing.
    Financially diligent people don't use 0% overdrafts? I'm sure these products attract many diligent people like flies to excrement, which is what this product turned out to be thanks to Nationwide's lack of ethics.
    shortcrust wrote: »
    What's a gold plated credit score?!
    Never being turned down for credit. It wasn't meant to sound like a proud boast, it's just a turn of phrase - get over it!
    le_loup wrote: »
    OP, you may think the above comments harsh. However you introduced the word "scam". Clearly there is no scam involved and you know that. What is your reply to CLAPTON's question? A question only asked in order to elicit some facts rather than your rather pointless rant.
    The scam is the promise of a 12 month 0% overdraft which they don't want to last 12 months. They are hooking in customers on false pretenses. Congratulations on spotting that my post was a rant, it was also a warning to others who might fall into the same trap, therefore not pointless.
    What I do find pointless is a bunch of useless answers. Try and find something better to do with your time.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    jonwest wrote: »
    Absolutely dreadful bank in my opinion.

    A bank will merely take action that reflects the state of its customers finances.

    I would hedge a bet that you have a number of bank accounts.
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