Interest Free Overdraft Nationwide FlexDirect-Be Warned

TartanSaver

Harryo wrote: »

What concerns me is that others, who are not so fortunate, may see this offer as a bit of a life saver

Less fortunate people do not get offered £5k overdrafts. Anyway, I'd be annoyed too, but they have every right to do this. Maybe you could consider funding it to £2.5k for your 5% gross instead.

I often wonder why Santander put up with me being £1499 overdrawn on a (free) student account, which they pay me 3% interest on in a 1-2-3... I just keep my head down and hope they never catch on!

colsten

Harryo wrote: »

I was however only using the facility so that I could use the free overdraft offer to help fund investments.

precisely that is likely to be the reason for why they cut your limit

Harryo wrote: »

Just making maximum use of a free offer.
To me, the purpose of such a free offer is to make maximum use of it, otherwise what is the point of the free offer.

there was never any offer that said you are guaranteed a limit for 12 months. It is your fault if you are making up offer terms that don't exist.

Harryo wrote: »

What concerns me is that others, who are not so fortunate, may see this offer as a bit of a life saver

the same terms apply to everybody, fortunate or less fortunate. If you want a guaranteed sum of money over a guaranteed period, you need to take out a loan.

The following is from the Nationwide "Understanding Overdrafts" leaflet. All other current account providers will have essentially the same rules.

Will my arranged overdraft ever be reduced or taken away?

In certain circumstances, we may reduce your overdraft amount. This will only be done after carrying out a number of checks (such as looking at the conduct of your Nationwide current account, other Nationwide accounts and your credit rating generally).

You’ll be notified in writing of any changes to your limit and if necessary we may ask you to pay back your overdraft balance. If you cannot do this please contact us to discuss your circumstances.

http://www.nationwide.co.uk/~/media/MainSite/documents/products/current-accounts/shared/p6972-understanding-overdrafts.pdf

MABLE

Nebulous2 wrote: »

I've just opened a nationwide account, mainly for the interest rate and was only offered a 3 month free overdraft, so they may have tightened up anyway.

I'm not sure about theM tightening up as I applied for another Flex direct sole account recently and they have given me 12 months interest free.

Drunk_Monkey

TartanSaver wrote: »

I often wonder why Santander put up with me being £1499 overdrawn on a (free) student account, which they pay me 3% interest on in a 1-2-3... I just keep my head down and hope they never catch on!

In your books, I hope

System

Many banks offer a 3 month free overdraft for switching purposes only - you probably switched to a standard FlexAccount and this was applied.

Nebulous2 wrote: »

I've just opened a nationwide account, mainly for the interest rate and was only offered a 3 month free overdraft, so they may have tightened up anyway.

Nebulous2

Heng_Leng wrote: »

Many banks offer a 3 month free overdraft for switching purposes only - you probably switched to a standard FlexAccount and this was applied.

No it was the flex direct. They had a menu approach, which allowed me to choose certain items. I turned the overdraft down altogether.

MABLE

Just received my card and pin for the new account at the same time today. Nice to know NW are very security aware!!!

badger09

MABLE wrote: »

Just received my card and pin for the new account at the same time today. Nice to know NW are very security aware!!!

They will almost certainly have been issued several days apart by Nationwide. What happens to them once they're in the hands of Royal Mail is, however, outside their control :cool:

MABLE

badger09 wrote: »

They will almost certainly have been issued several days apart by Nationwide. What happens to them once they're in the hands of Royal Mail is, however, outside their control :cool:

That may be so but have raised a concern with Nationwide BS. If someone in the delivery office had got hold of those details and accessed my account I would have had problems proving it was not me.

And yes all we know the majority of posties are the salt of the earth.

YorkshireBoy

MABLE wrote: »

That may be so but have raised a concern with Nationwide BS.

What would you like them to do to address your "concern"? ie what would make you happy?...

• A delay of, say, 10 working days between mailings of cards and PINs for any future accounts you, and others, open with them?
• A written assurance that they do, in fact, send them 3 working days apart so it must be Royal Mail's fault?
• A cheque for £50?
• Or maybe something else entirely?