Bank changing overdraft deal

daverave7

I changed my second account to a Nationwide Flex direct Account last November, which advertised a 12 month fee-free overdraft. I got a fee free overdraft of £1000.

Hovever, I have received a letter stating that they will be reducing my facility (to £250) and will now be charging 50p a day interest on the facility. They state that I am not paying enough into the account. I admit it is a second account and I only pay and use approx £500 a month into/ out of it for bills etc. But dont they have to stick to their original terms and condiitons i.e. 12 month interest free?

Super_Whiskey

I'd imagine like most banks they have the right to change it as and when they need to provided they give you enough notice. If you're only paying in and ut about £500/m then from their point of view, £1000 overdraft would be a big risk as you wouldn't be able to pay it back based on what they know of your income and expenditure.

colsten

They can reduce the overdraft limit any time they like, see T&Cs.

What's not so clear is whether they need to give you 12 months for free on a secondary account - there is nothing relating to this in the T&Cs that I can see. They have made it quite clear that they would not pay the promotional interest on secondary accounts, so perhaps their policy is now the same for the promotional overdraft offer.

You could try and convince them that they should continue to give you the free of charge deal for the full 12 months but you'd need to be prepared that they reduce your overdraft to zero, making it all academic.

It doesn't sound as if you use the overdraft, anyway?

eskbanker

colsten wrote: »

What's not so clear is whether they need to give you 12 months for free on a secondary account - there is nothing relating to this in the T&Cs that I can see. They have made it quite clear that they would not pay the promotional interest on secondary accounts, so perhaps their policy is now the same for the promotional overdraft offer.

Surely as far as Nationwide are concerned it's not a secondary account (unless OP has another account with Nationwide, which isn't stated one way or the other in the opening post)?

daverave7

It's my only Nationwide account, and I do use the overdraft. There was no mention of a minimum payment per month when it was opened. I simply switched from an account with £1000 overdraft to the Flex Direct (with same overdraft) to benefit from the interest free offer. It's backfired unfortunately, as now I have to find almost a £1000.

diamonds

daverave7 wrote: »

It's my only Nationwide account, and I do use the overdraft. There was no mention of a minimum payment per month when it was opened. I simply switched from an account with £1000 overdraft to the Flex Direct (with same overdraft) to benefit from the interest free offer. It's backfired unfortunately, as now I have to find almost a £1000.

You opened in branch ?

daverave7

It was opened online.

grumbler

daverave7 wrote: »

... But dont they have to stick to their original terms and condiitons i.e. 12 month interest free?

You aren't the first one caught by this deceptive offer.
Unfortunately, the fact is that the T&C promise 0% for 12 months, but don't promise the same limit.

Report them to the (useless) ASA as, without breaking the T&C, they can easily cut the original limit to £1 the very next day after having decoyed you.

diamonds

daverave7 wrote: »

It was opened online.

NW would expect you read the T&C, I thought you meant in branch and staff never informed you.

You are going to have to put it down to experience, nice things always come with small terms & conditions not always on the lovely marketing bumf.


I do hope you can sort out the £1000 payable on demand though, I was held to ransom by Santander paying a overdraft off at £10 a month - OD charge of £2 was soon £10 a month in two separate price rises in 12 months and I ended !p in a endless cycle of not clearing the balance which like NW they pulled on me.

They eventually relented and cleared the account with no cost to me because they entrapped me by breaking the £10 a month to clear balance agreement I approached and put in place at my request by raising my OD fees twice, when they should have stopped them from the outset in the £10 debt repayment voluntary agreement. They calculated I had already paid my OD back three times over when OD and interest charges should have been frozen on the voluntary agreement.


Needless to say they never refunded me for a staff error with the debt repayment when my only deposits were IB/ESA but did zero the balance and left the account open.



I know how you feel, regardless of circumstance a OD pull when you have budgeted and planned is a major annoyance. We all have to live and learn, best of luck

daverave7

In my case, they are not even sticking to 0% for 12 months, and want to charge me 50 p per day on the new overdraft.

jimjames

daverave7 wrote: »

In my case, they are not even sticking to 0% for 12 months, and want to charge me 50 p per day on the new overdraft.

How much did you say you'd pay in?