NatWest overdraft screwed me over

Andrew754

I am a student, and am eligible to obtain an overdraft set at a limit of £2,000.
I currently hold a limit of £1,000 and looked to increasing this at the weekend.

I was told that my application was approved, and they would notify all necessary departments I've been successful. I was since told I could expect the funds to reach my account as available, within 48 business hours.

During the weekend, and numerous phonecalls for a previous complaint, I was told no less than three (3) times that my application was approved, and would have my funds Tuesday 18th.

Funds did not show up this morning, prompting another phonecall. I was connected to a person who, in turn, also told me it was approved, he could "see on the computer" that my funds would definitely be available to me today so check again after 1200 hours.

I did. Nothing was available again.
I called back once more, and the phone operator told me that I was actually declined for the overdraft on the Saturday 15th, and would not be getting any money into my account at all.

This has now gone to the complaints department, who made me wait on hold for some time, only to tell me they would call me back "shortly" which turns out is over an hour. And the call is yet to come through.

I've clearly been lied to somewhere down the lines, and strongly do NOT recommend this bank.

stclair

I suspect the application was provisonally approved pending further checks. I would assume as a result of these checks you was then later declined. Ideally you need to speak to lending to discuss your application.

When complaints are raise via the correct channel it could take upto 48 hours for someone to call you back. You might get a couple of quid for the inconvenience but the complaints department can't overturn a lending decision.

chanz4

double od, also complains they aint going to help you

James_B.

What "funds" are you expecting to appear? Extending your overdraft limit does not result in any funds going anywhere at all, it simply increases the amount by which you are allowed to go overdrawn.

I recently added a £5k overdraft to an account, and as expected, the balance did not move by so much as a penny.

Are you perhaps not explaining exactly what the situation is here, or did you think that an extra £1,000 overdraft would result in funds being added to your account?

That would not be an overdraft, that would be a loan.

grumbler

Andrew754 wrote: »

I am a student, and am eligible to obtain an overdraft set at a limit of £2,000.

"Eligible" is a wrong word. You can apply for it, but they can refuse.

...I was since told I could expect the funds to reach my account as available, within 48 business hours.

...would have my funds Tuesday 18th.

Funds did not show up ....

... I ... would not be getting any money into my account at all.

What "funds" or "money"? An overdraft is just a limit that affects the 'available balance', but doesn't affect the current balance. No money physically moves when you are given an overdraft.

pheonix254

I assume he is talking about waiting for the "available balance" to increase.

But the above poster is correct, there is no entitlement, just a limit that the majority of students with an "average (for a student)" credit rating will get.

I assume you've been using it as your main account? (i.e. 2 debits and 1 credit absolute minimum per month) Not just withdrawing the lot as soon as you got it and not really using the account? I made that mistake and they refused to increase my overdraft for about 6 months.

As for them giving false information - well, it's bad customer service, but it isn't going to help - they are following a script - classic "computer says no". If you're really not happy with them, ditch and switch.

And remember, every time you increase your overdraft (or apply for a credit card, or apply for a loan) this counts as a credit search and damages your credit rating which leads to a much higher likelyhood of rejection. restrict searches to 2 every 6 months if you can, as a rule of thumb.

Andrew754

Yes, the last post was correct, when I mentioned funds going in etc I was referring to an increase of the overall available balance.

I'm not expecting to automatically receive this extra £1k, I am eligible by means of credit scoring and their own individual checks. I was approved for the overdraft there and then, rather than provisionally, and as a result of 6 hours worth of phonecalls am back on track and will now be paid tomorrow.

This was entirely their fault however, which after a further 20 minutes on hold they admitted to. They're also removing the false entries on their behalf from my credit profile.

mgdavid

pheonix254 wrote: »

....... If you're really not happy with them, ditch and switch.......

but be aware that if you're a student living in a 4-figure overdraft you may not be exactly welcomed with open arms !

thebritishbloke

Andrew754 wrote: »

Yes, the last post was correct, when I mentioned funds going in etc I was referring to an increase of the overall available balance.

I'm not expecting to automatically receive this extra £1k, I am eligible by means of credit scoring and their own individual checks. I was approved for the overdraft there and then, rather than provisionally, and as a result of 6 hours worth of phonecalls am back on track and will now be paid tomorrow.

This was entirely their fault however, which after a further 20 minutes on hold they admitted to. They're also removing the false entries on their behalf from my credit profile.

What false entries on your credit file? You're giving us half a story. If you're talking about the search, that will stay there whether you were accepted or declined. That's how credit searches work, it's not "false".

Get out of your head that this is "paid". You're not being paid anything, you're requesting the ability to get £1000 further into debt. It's a slippery slope, you'll just keep borrowing more and more. You need to learn to live within your means.

If you were approved for an overdraft limit increase there and then, it would have been instantly added to your account.

stclair

thebritishbloke wrote: »

What false entries on your credit file? You're giving us half a story. If you're talking about the search, that will stay there whether you were accepted or declined. That's how credit searches work, it's not "false".

Get out of your head that this is "paid". You're not being paid anything, you're requesting the ability to get £1000 further into debt. It's a slippery slope, you'll just keep borrowing more and more. You need to learn to live within your means.

If you were approved for an overdraft limit increase there and then, it would have been instantly added to your account.

I personally work in lending and I do not think we are being told the whole story here! However when an overdaft is applied to an account its applied the next working day. The bank does not have the facility to apply overdrafts there and then at present.

Andrew754

thebritishbloke wrote: »

What false entries on your credit file? You're giving us half a story. If you're talking about the search, that will stay there whether you were accepted or declined. That's how credit searches work, it's not "false"

During the problems I've encountered, it was actioned that multiple applications were put through due to what they called a "header mark" or "head office mark" and since the application couldn't be handled this way they had to do it another two times.

These repeat applications would have affected the credit score and this is what they now seek to remove for me