Bit miffed on son's behalf.....

GingerFurball_2

beedeedee wrote: »

OK, so son has had a £750 overdraft facility on his LLoyds a/c for many years. He's never used it and his credit card with them is usually paid off every month. He has no other debts at all, but has had loans from them in the past, when needed - all paid up and on time. He has some long term investments/savings. A reasonably good risk you would think?
Out of the blue, he's had a letter saying the overdraft facility is being cut to £200 because he doesn't use it. He has always liked having the £750 o/d available - just in case! He nipped into the bank the same day to ask them to restore the limit - but the computer says no, as he has never used it........... and there was apparently no way anyone could overide it!
I just feel a bit miffed for him. Obviously brought him up wrongly.........?

He should be able to go through an application to maintain the overdraft limit.

chambta

fozmcfc wrote: »

I've had a £5k overdraft with Natwest for 5 years + and haven't used a penny of it ever, so not sure, that banks always reduce/remove limits, if it's not used.

It might depend on, if someone is worth keeping as a customer.

With Natwest, I have banked with them for 28 years and have what I would consider substantial savings with them and perhaps, my account has a marker to say, don't risk upsetting/losing customers account.

Unless very large (£15k+) RBS/NatWest would very rarely want to remove an unused overdraft facility.

Goldiegirl

If he's never, ever used it, it would seem very unlikely he's going to suddenly want to go overdrawn by £750, so I can't see why he's bothered.

It sounds like he won't use the £200 overdraft either, so there's no adverse effect on him.

shortcrust

Goldiegirl wrote: »

If he's never, ever used it, it would seem very unlikely he's going to suddenly want to go overdrawn by £750, so I can't see why he's bothered.

It sounds like he won't use the £200 overdraft either, so there's no adverse effect on him.

I've never ever used the overdraft on my main current account, but that doesn't mean I'd be happy if it was removed. It gives me peace of mind. I know that if I get run over by a bus and spend a month in coma all my bills will still get paid on time. I know that I've got cash to draw on even if I can't get to transfer money from other accounts. Loads of people have overdrafts they've never used.

newfoundglory

The same thing happened on my Lloyds account about a year ago, letter informing reduction to £200 due to the facility not being utilised. Nothing to worry about.... applied for other accounts recently and was offered £4000 o/d, which I just don't need.