Santander overdraft or Not .....

snowbugs

Hello Forum
Has anyone else had the same bad practice ,
and if so what was the final outcome .
I Changed to this bank on the promise of an £1000 OD and all was well until the end of the first year ,
They sent me a letter details how after a review i had not managed my account correctly so would cancel the OD ,
I called up to understand what i had done so badly wrong and was told the letter was incorrect and the OD was reinstated (All good but a little miffed i had to do the leg work )
12 months on and i get the same letter Bla bla bla you get the point ,
However when i called up this time i was told ,it had nothing to do with my credit position it was the fact that i have not used the OD,
So i was deemed as not needing it and it was reduced to £300, to make matters worse 2 mouths later it was totally withdrawn .


The moral to this is santander seem happy to give you the world when you join and then take it away if you are not making them money , i could understand if i was a bad credit risk or had gone over my agreed amount
will be moving banks very soon

Archi_Bald

Probably not what you would like to hear: I have had an unsolicited £900 overdraft limit on my 123 account since 2011. Never used any of it, never received any letter from them about it.

MABLE

I have account with their internet bank Cahoot and was given a £1300 in July 2002 and rarely used and I never hear anything from them and was not even aware they reviewed their overdrafts.

101problems

think you are right but also wrong,
you have a facility you dont use it they take it away.
dont forget a bank is a business not a charity and as a business they have to act in the best interest of the shareholders which means make money!
think of it the same way as we savers do if you have an account with 20k are you going to put it in an account that gives you 0.5 or 3% its a no brainer! why you will make more money.
Santander are doing exactly the same they are simply moving their money (its an overdraft. so it is) to a place it can make more money.
you may say what about customer loyalty i say sod loyalty i want my 3%

brewerdave

I've had an OD limit of £ks with NatWest for donkey's years which I have never used -never changes.......but I did a partial switch to Santander for the 123 Account, moving all my DDs and a chunk of savings,then got a letter from Santander telling me that, sorry, I hadn't been approved for an OD!!
Assumed that Santander based their decision on some internal info. from Natwest/credit agencies.

jonesMUFCforever

A lot of banks seem to be doing this at the moment.
I have had 2 overdraft facilities reduced for the reason I had not used them in last 12 months.
Good in the fact I did not need to use it - bad ''if only'' scenario ever happens.

Archi_Bald

Overdrafts are liabilities on the banks' books. To reduce their liabilities, it makes sense for them to reduce / remove unused overdrafts. Though they need to balance this with the potential profits they could make from overdrafts that might get used if they remained on offer to the customer.