Nationwide FlexDirect Overdraft Experience

wavygravy60

I'm furious. I switched bank account six months ago to Nationwide and I went for the FlexDirect. It offered me an overdraft of £2750 and I took up the offer - interest free for 12 months.

I have paid in over £3000 a month, every month and have never exceeded the limit or even come close.

I received a letter today stating that following a review of my account they were reducing the overdraft to £1750 next month. No other reason given. I now have to find £1000 and am annoyed that the deal I switched for - 12 months free overdraft - has been changed.

Has anyone else experienced this? I've only been with Nationwide for six months and was impressed at how friendly the branch staff were, but I'll move account after this.:mad:

Ed-1

wavygravy60 wrote: »

I'm furious. I switched bank account six months ago to Nationwide and I went for the FlexDirect. It offered me an overdraft of £2750 and I took up the offer - interest free for 12 months.

I have paid in over £3000 a month, every month and have never exceeded the limit or even come close.

I received a letter today stating that following a review of my account they were reducing the overdraft to £1750 next month. No other reason given. I now have to find £1000 and am annoyed that the deal I switched for - 12 months free overdraft - has been changed.

Has anyone else experienced this? I've only been with Nationwide for six months and was impressed at how friendly the branch staff were, but I'll move account after this.:mad:

Yes Nationwide have done this quite a lot judging by posts on here.

Just be thankful it's not Lloyds. They'd probably close the account altogether!

grumbler

When abusing offers, especially with flexible terms, it's worth giving it more thought rather than doing this blatantly.

Were there any genuine transactions like purchases, DDs etc.? Did it even remotely look like you were trying to reduce the overdraft balance gradually?

wavygravy60

It's my main account and all my DDs hang off it. Where in the offer does it state you have to reduce your balance over time? I was aiming to pay it in month 12, as per their offer.

Ed-1

wavygravy60 wrote: »

It's my main account and all my DDs hang off it. Where in the offer does it state you have to reduce your balance over time? I was aiming to pay it in month 12, as per their offer.

It doesn't. But they don't have to offer it and even if they do, they can withdraw the overdraft or the account at any time they want. It's not how it should be, but it's how it is.

grumbler

wavygravy60 wrote: »

Where in the offer does it state you have to reduce your balance over time?

It doesn't.
Neither does it say that the original limit, unlike 0%, is guaranteed for 12 months.

takman

It sounds like they are doing you a favour if your maxing out a £2750 overdraft and struggle to find the money to pay it off when it's reduced!. Having no cash to fall back on for situations like this is a sure fire way to get into money trouble!.

colsten

All lenders can recall overdrafts any time they like. For Nationwide, the T&Cs that you agreed to state:

22. Any overdraft that we give you can be immediately reduced or withdrawn by us and all overdrafts are repayable on demand. We will aim to give you not less than 14 days’ notice before reducing or withdrawing your overdraft or demanding repayment.

wavygravy60

Asset rich, cash poor - will have to sell some shares in my S&S ISA to cover it, which I wasn't planning on doing. Just annoyed at the principle of a company offering a 12 month deal to get me to switch accounts, then moving the goalposts six months in...

takman

wavygravy60 wrote: »

Asset rich, cash poor - will have to sell some shares in my S&S ISA to cover it, which I wasn't planning on doing. Just annoyed at the principle of a company offering a 12 month deal to get me to switch accounts, then moving the goalposts six months in...

Why not keep £2000 in a TSB 5% account?. I have always found it best to have some easy access cash available for unplanned expenses. Plus you can then get the contactless cashback as well.

ceredigion

I've been stoozing an Nationwide overdraft for the last six months with no problems. However last time my Noddle report was updated there was an "Administration Review" recorded. After reading reports by other posters over the years, was expecting a letter myself but as of today no letter.