Nationwide Overdraft Scam

innovate

jonwest wrote: »

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.


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.


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!


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.

More ranting then from you, not surprisingly. And attempts at insulting people who responded. It doesn't earn you credibility on here.

There are people on MSE who happily had their 12 months of 0% FlexDirect overdrafts, up to £2.5K. There is no scam, and there is nothing unethical about the Nationwide FlexDirect account (or any other Nationwide accounts I know of). The FlexDirect has been massively popular and none of the many other people who have taken it up on here have had a bad word to say about it. Quite the contrary, most of us have benefited from a big loophole that Nationwide closed very gracefully.

If Nationwide have broken the T&Cs of the FlexDirect for you, you will have a case. However, the sheer fact that they put you on a repayment plan (that you appear to have accepted?) after only 4 and a bit months into the 12 months offer period suggests that may be you have broken the T&Cs?

There is information on the main MSE site regarding credit scores. You should try and find this information so you can read up why credit scores are meaningless numbers. Though in essence, as has already been mentioned, each provider can choose who they wish to give credit to. Nationwide appear to have decided not to extend any further credit to you, for reasons they don't have to share with you. It's not a scam, it's their right.

SuperAllyB

jonwest wrote: »

...

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.


...

However, financially diligent people normally have the money earning interest elsewhere, and are more than aware that the facility can be recalled at any time. Whereupon they repay the overdraft without the need for a repayment plan.

MABLE

Well I am enjoying a £3000 interest free overdraft courtesy of NW and the money is sitting in Lloyds at 3 percent per annum.

Also they offered me £2500 on my sole account but instead I funded that one to get the 5 percent interest so the overdraft for that one was no good.

If this is a scam then its certainly loaded in the customers favour.

CreditCrunchie

I'm really confused by this. Why would you need a repayment plan? Have they taken the overdraft off you? I have a flexdirect too and switched from the one with travel insurance precisely because of the no fee overdraft.

jonwest

CreditCrunchie wrote: »

I'm really confused by this. Why would you need a repayment plan? Have they taken the overdraft off you? I have a flexdirect too and switched from the one with travel insurance precisely because of the no fee overdraft.

£1700 was maxed out within a month of opening, I never went over the limit and the account was being well maintained with occassional deposits to the point where it is now more than half repaid. Despite what people on here would love to believe, my financial situation is perfectly healthy, ie - zero debt. No t & c's have been broken whatsoever. Perplexed at Nationwide's decision. Is it too much to expect that when you take out a 12 month overdraft and maintain it diligently, to be given the full term to pay it off? I don't think so. Sorry that warning people of this unfairness has upset some people for some reason but it takes all kinds I suppose.

Archi_Bald

jonwest wrote: »

£1700 was maxed out within a month of opening, I never went over the limit and the account was being well maintained with occassional deposits to the point where it is now more than half repaid. .......... my financial situation is perfectly healthy, ie - zero debt.

What is it - a debt of some £790, or zero debt?

How did the repayment arrangement come about?

CreditCrunchie

I still don't understand why NW would want the OD paid back before the term agreed though, unless you broke their terms in some way ;? I'm not getting at you btw, just genuinely interested in case this is a common thing for NW?

System

I would say Nationwide are slightly better in these type of things than the major banks.

The OP obviously thought Nationwide would treat the overdraft like a credit card and not simply demand repayment on request.

The best scenario for these 0% cases is to 'unsave' the money or at have a way to repay the full amount by borrowing elsewhere.

CreditCrunchie wrote: »

I still don't understand why NW would want the OD paid back before the term agreed though, unless you broke their terms in some way ;? I'm not getting at you btw, just genuinely interested in case this is a common thing for NW?

Herbalus

I thought a repayment plan was something that was agreed by you and the bank? I didn't think bank could put you on one by themselves?

Nobody else on here has reported issues with Nationwide recalling their overdrafts, and those on here who've taken it all out presumably cycle £1000 per month and don't pay their salary into it via BACS, so I'm not sure how the lack of salary (potentially) relates to the OP's reduction of overdraft.

I don't know the reason for the removal of the overdraft, but it normally happens when somebody breaks the terms of the agreement. That means either the OP has acted in a way that Nationwide consider to be financially dangerous, or he has a valid complaint.

PeacefulWaters

jonwest wrote: »

£1700 was maxed out within a month of opening

That would be a concern. Not, on it's own, enough to trigger a removal or a reduction of the facility, but undoubtedly somebody appearing to spend an extra £60 a day more than they earn is reason enough to monitor the account.

I never went over the limit and the account was being well maintained with occassional deposits to the point where it is now more than half repaid.

Are these occasional deposits a regular weekly or monthly salary? Or are they sporadic bits of cash here and there?

Quick overdraft debt plus no salary = high risk account = reduced / remove facility.

Despite what people on here would love to believe, my financial situation is perfectly healthy, ie - zero debt.

Except for a £1,700 spendfest on your Nationwide account.

Has the account seen your wage each month, paid via BACS, or not?