Nationwide removed reserve limit?

demay

I have a £500 overdraft and did have a 'reserve' limit that was slightly beyond that, which was never used.

I noticed on my internet banking today that my reserve limit has been removed, without me requesting this.

Why would do they remove this without me asking?

dr_adidas01

demay wrote: »

I have a £500 overdraft and did have a 'reserve' limit that was slightly beyond that, which was never used.

I noticed on my internet banking today that my reserve limit has been removed, without me requesting this.

Why would do they remove this without me asking?

They don't have to tell you that they are going to remove it, its based on how you run your account and the information received from the credit reference agencies.

It can go up or down or can be removed as seems to be the case.. You don't have an automatic right to have a reserve limit or an overdraft.

demay

dr_adidas01 wrote: »

They don't have to tell you that they are going to remove it, its based on how you run your account and the information received from the credit reference agencies.

It can go up or down or can be removed as seems to be the case.. You don't have an automatic right to have a reserve limit or an overdraft.

Hmm, well my credit rating has improved according to Experian and there's never been so much as a blemish on my account. Infact, last month, my overdraft level was increased.

I fully understand that it's not a 'right' to have a reserve amount - was just confused as to why they have removed it, when requesting such a thing could take upto 6 weeks, according to their info.

It was only £9 beyond my overdraft limit anyways, and not something that I've ever used.

Joe_Bloggs

I have a Nationwide reserve of £500 on top of my overdraft. I never use the overdraft. I would rather a bank just indicate to those wanting money from me that there was none available beyond the overdraft.

My bank should bat for me rather than charge extra fees for paying creditors demands for money that I haven't got in the first place.
If a payment is late or non existent due to lack of funds then ideally it is between the creditor and myself and not the bank. Let the creditor levy their own charges.

If I was seen to use the overdraft then this would be a banking error , mental collapse or identity theft. Were the reserve above the overdraft to be used then it would be due to a continuing loss of control of the account.

J_B.

kingstreet

demay wrote: »

Infact, last month, my overdraft level was increased

Which may explain it.

Lenders often reduce/remove one thing while increasing another. This reduces the potential risk of the action to increase the overdraft limit.

System

IMO the reserve limit is mostly based on account activity rather than external factors.

callum9999

Joe_Bloggs wrote: »

I have a Nationwide reserve of £500 on top of my overdraft. I never use the overdraft. I would rather a bank just indicate to those wanting money from me that there was none available beyond the overdraft.

My bank should bat for me rather than charge extra fees for paying creditors demands for money that I haven't got in the first place.
If a payment is late or non existent due to lack of funds then ideally it is between the creditor and myself and not the bank. Let the creditor levy their own charges.

If I was seen to use the overdraft then this would be a banking error , mental collapse or identity theft. Were the reserve above the overdraft to be used then it would be due to a continuing loss of control of the account.

J_B.

If you don't want a reserve limit then remove it... I'm sure plenty of people like the fact that they're able to know exactly how much they can go over-overdrawn instead of having to guess. Of course people shouldn't use such a facility, but I'm sure there are a few scenarios where people have needed to.

pmduk

demay wrote: »

Hmm, well my credit rating has improved according to Experian

Then ask experian to give you a reserve then.

In truth their "ratings" are meaningless.

demay

pmduk wrote: »

Then ask experian to give you a reserve then.

In truth their "ratings" are meaningless.

What a sensible suggestion that is not at all ridiculous :T

As mentioned, I've never needed to use my reserve limit, and never would.

I'm more concerned about why it was removed, suggesting that my account is not in good shape, which it is.

MrSilk

Why are you bothered about Nationwide removing something that you'll never even use?

Do you feel they don't trust you anymore? If that was the case they would remove your overdraft immediately.

FWIW, I have an overdraft with them for £2150 and have never had a reserve limit, I'm not at all bothered by it as I don't and won't ever need a reserve limit.