Nationwide and the Absolute Overdraft Limit

Sunnie15

I set up a Standing Order for £3000.00 the other day by mistake. It should have been for £30. At the time there was £1200 in my account and an overdraft facility of £1000. The first inkling that I had that there was a problem was when my card was declined in a shop and when I check the balance found I was £1997 overdrawn!!!!
Nearly double the overdraft limit. Not surprising the card had been declined. I rang Nationwide who told me that the reason they had allowed the payment to go through was because I had an 'absolute overdraft' of £3000 on my account, not the £1000 I had requested.
I am able to claim the money back as I now have a credit card with a £3000 credit balance on it but in the meantime I am totally flat broke and living on the cash in my purse. I have told Nationwide that the info they seem to be giving me is c**P because if there was a £3000 overdraft on the account why did it stop working at £2K overdrawn. Has anybody else had this experience? Waiting a call back again from Nationwide for today's explanation on this before registering a formal complaint. I know it was my mistake in the first place but the payment shouldn't have gone through because it took the account to double what I thought the OD limit was, Nationwide won't seem to accept this and just keep referring to the absolute OD limit of £3K

Hazzanet

http://www.nationwide.co.uk/support/support-articles/manage-your-account/flexaccount-reserve-limit

grumbler

I am able to claim the money back as I now have a credit card with a £3000 credit balance on it but in the meantime I am totally flat broke and living on the cash in my purse.

What's wrong with using the CC that is in credit? I hardly ever use cash nowadays.

Sunnie15

Because I have D/Ds that are due to go out before I get paid again and need the money back in my account. Nationwide said today they are still looking into it. Have just changed this to a Flexplus account. I was offered a £3K overdraft limit but declined it. No bloody point in letting me do that if they were going to ignore my limits

grumbler

What you were offered and declined seems to be the agreed limit, not the 'absolute'/reserve limit. The agreed limit isn't a cap and can be breached.

benjus

I wonder what happens if you somehow manage to make enough offline card transactions to take you beyond the reserve limit/absolute overdraft...

System

They get paid as they are guaranteed payments and you get charged.
Offline payments are normally low value payments.

benjus wrote: »

I wonder what happens if you somehow manage to make enough offline card transactions to take you beyond the reserve limit/absolute overdraft...

reclusive46

benjus wrote: »

I wonder what happens if you somehow manage to make enough offline card transactions to take you beyond the reserve limit/absolute overdraft...

Not really possible with the chip side of things, as the bank will set a maximum amount of money it can authorise offline and the only major market that uses the magnetic stripe is the US and they are a online only market.

MABLE

Sunnie15 wrote: »

I set up a Standing Order for £3000.00 the other day by mistake. It should have been for £30. At the time there was £1200 in my account and an overdraft facility of £1000. The first inkling that I had that there was a problem was when my card was declined in a shop and when I check the balance found I was £1997 overdrawn!!!!
Nearly double the overdraft limit. Not surprising the card had been declined. I rang Nationwide who told me that the reason they had allowed the payment to go through was because I had an 'absolute overdraft' of £3000 on my account, not the £1000 I had requested.
I am able to claim the money back as I now have a credit card with a £3000 credit balance on it but in the meantime I am totally flat broke and living on the cash in my purse. I have told Nationwide that the info they seem to be giving me is c**P because if there was a £3000 overdraft on the account why did it stop working at £2K overdrawn. Has anybody else had this experience? Waiting a call back again from Nationwide for today's explanation on this before registering a formal complaint. I know it was my mistake in the first place but the payment shouldn't have gone through because it took the account to double what I thought the OD limit was, Nationwide won't seem to accept this and just keep referring to the absolute OD limit of £3K

Why not contact the cc company and get them to put the overpayment back into your bank account. Also most card providers will not allow a cc to be in credit.

I am with NW and my overdraft facility is £2200 but i know my max is £5000 and is reviewed on a six monthly basis. However I have never experienced a scenario as out lined in OP message.