Lloyds tsb !! Overdraft cancelled

Caggett84

Hi there. First time using this site but prompted by Lloyds tsb and their latest surprise. For years and years I've have an overdraft limit of £3500 and lived in it. I know that's not healthy but that's the way it always has been. Back when I had less money these people would charge me hundreds a month and would mess me right up. These days the charges are minimal but still an un welcomed amount. I get paid weekly on a Friday and today when checking my pay had gone in I noticed that even though it had I have no money available. This is because. My overdraft is no longer there. I've revived no prior warning to this. As I get paid weekly I pay bills weekly so as you can imagine this has now put me in a pickle ! Are they allowed to do this and is there anything I can do about it. I have no doubt that they will continue to charge me as they have literally taken thousands off me over the years. Help please !

PeacefulWaters

Overdrafts are repayable on demand. At some point it would have been wise to start spending less and reducing your debt.

You are, however, where you are.

First things first, is it now Lloyds or TSB? There is no Lloyds TSB.

Do nothing and you will be charged mercilessly for being in unauthorised overdraft. So call them. Have a proposal for reducing the debt. Forget about how long you've been with them. Forget about how much you've paid in charges. It stands for nothing.

You could ask them why they haven't given you any notice. But in truth this may be an event that actually benefits you in the long run. If you call them and agree to start reducing the debt.

FireWyrm

ODs are payable on demand as PW says, but they ought to have sent you some warning at least 30 days before removing the facility. Have you moved house recently or not updated a home address? I would be demanding to know why you were not informed in advance.

eskbanker

Caggett84 wrote: »

For years and years I've have an overdraft limit of £3500 and lived in it. I know that's not healthy but that's the way it always has been. Back when I had less money these people would charge me hundreds a month and would mess me right up.

This is the key - if you now have the same overdraft but more money then you need to be putting the additional funds to good use by starting to pay it down! Chances are they've realised that you're living in it without making inroads into it rather than using it as a temporary facility as intended.

grumbler

Caggett84 wrote: »

... For years and years I've have an overdraft limit of £3500 and lived in it.

Hardly a surprise that they pulled it then. Unlike CCs and loans, overdrafts are intended for short-time borrowing, not for 'living in them'.

That said, as pointed out above, they should have given you 30-days' notice:

• Terms and conditions

10.3
Overdrafts are always repayable on demand. This means that we can ask you to repay all or part of your overdraft (and any interest or charges) at any time, even if we have agreed a period for the overdraft with you. We can also reduce your overdraft limit at any time. If we demand repayment or reduce your limit, this will usually be due to a change or anticipated change in your personal circumstances. If we can reasonably do so without prejudicing our interests, including our regulatory position, we will give you at least 30 days’ notice before making the change.