Nationwide Overdraft Scam

le_loup

jonwest wrote: »

and the account was being well maintained with occassional deposits

I wonder if this indicates that "salary" was not being paid into the account and was ONLY being used as a free overdraft. If so, would that be against the T&Cs?

innovate

People have used their FlexDirect accounts with overdrafts of £2,500 as stoozing accounts without any problems. Although they still cycled £1,000 through them every month.

The OP has done something against the T&Cs, or has upset one or more Nationwide employees.

Things like saying "I have zero debt" when you have just borrowed £1,700 are not constructive. Being unable to pay back an overdraft on demand is not financially astute because this forces you to break the T&Cs you agreed to. Claiming a scam when the provider has not broken any T&Cs is unwise.

zerog

If you were unable to pay back £700 on demand I would refuse you a credit card too

When the interest rate on one of my FlexD accounts was reduced to 1%, I withdrew £4500 from it and put it into a higher interest account, and NWd has not asked me to repay anything. (Having £12k of ISA with them may be the reason though)

BillJones

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

You state above that you have an overdraft, and now state that you have no debt. You need to get your story straight. Which is it?

MrSilk

You need to look at this whole situation from Nationwide's point of view, they granted you a £1,700 OD and you withdrew the whole amount in under a month, without your salary ever being deposited into the account.

My salary goes into my account every month, and even with my CCJ, they have given me a FlexPlus with a £700 OD facility, so it does make a lot of difference if you have regular BACS payments going in or not.

There is no 'scam' here, the T&C's where pretty clean from the offset, that Nationwide where entitled to recall the OD facility at any moment, and unfortunately on this occasion that's what they've decided to do. They obviously saw you as a risk, and quiet rightly too in my opinion.

With regards to you having no debt, unfortunately this isn't the case. Your debt is whatever the outstanding balance is on the overdraft, and would be recorded on your credit file as an outstanding balance. This information would be taken into account by other credit lenders when you make any new application for credit.

MrSilk

If Nw had asked for full payment and you could afford to pay back the full amount.. Why did you max out the overdraft in a month? Maybe a credit card would have been better...

MrSilk

Terms may have not been broken,just that you spent the whole OD in a month.. To Nw it would look like you're struggling.

It would only be classed of a scam if they've financially wronged you. Not the other way round

Herbalus

There seems to be a lot of posts disappearing from this thread...

Makes it even more difficult to understand exactly what is going on!

jonwest

innovate wrote: »

People have used their FlexDirect accounts with overdrafts of £2,500 as stoozing accounts without any problems. Although they still cycled £1,000 through them every month.

The OP has done something against the T&Cs, or has upset one or more Nationwide employees.

Things like saying "I have zero debt" when you have just borrowed £1,700 are not constructive. Being unable to pay back an overdraft on demand is not financially astute because this forces you to break the T&Cs you agreed to. Claiming a scam when the provider has not broken any T&Cs is unwise.

I have said on numerous occasions that I have not broken any t's and c's. Can you actually read? Zero debt obviously refers to my financial situation outside this issue. Again, not too difficult to understand. All those little medals under your name have gone to your head. You remind me of the milk monitor at school who thought she could tell us to slow down in the corridor. I dare say you patrol these forums in the same way, excersizing your superiority complex on newbies who dare to question your wisdom. Let me tell you, you are closer to being a troll than you think. These goes to everyone else who has not seen fit to read my original post as a meritable complaint and has instead chosen to be sceptical.


Nationwide have got back to me today and admitted they had incorrectly told me that my credit record wouldn't be affected and are writing a letter making it clear to cc companies that an error was made and my February file cleared. If that doesn't work, I have to wait several weeks for my file to actually show as clear. If nw had told me the truth I would have paid off the o/d in anticipation of applying for a cc. Not happy at all that I have been penalised on 2 counts.

Herbalus

jonwest wrote: »

All those little medals under your name have gone to your head. You remind me of the milk monitor at school who thought she could tell us to slow down in the corridor. I dare say you patrol these forums in the same way, excersizing your superiority complex on newbies who dare to question your wisdom. Let me tell you, you are closer to being a troll than you think. These goes to everyone else who has not seen fit to read my original post as a meritable complaint and has instead chosen to be sceptical.

I think that's a little disrespectful to somebody you don't know, and belittling them isn't going to improve your situation. Many of these members have years of experience and spend their time helping others with their queries. Personally I think we're lucky to have them.

Their experience, from seeing many of these problems, is that something with your story doesn't quite add up, hence their questions and skepticism. The reference you made to a "scam", which is normally perpetrated by white van men and the like (sorry about the stereotype), and almost definitely not by a regulated financial institution, didn't help your case.

Nationwide admitting they should have told you about the consequences of the repayment does not explain why they wanted the repayment, and does not indicate that they were wrong to demand the repayment. That is still unexplained. Hence the questions and assumptions, that may be wrong, but from my perspective make more sense than a "scam".