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Nationwide are reducing my overdraft facility
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ravenhill
Posts: 12 Forumite
I suspect there won't be an answer to this, but I feel I need to rant to get it off my chest.
I have a £2500 overdraft with Nationwide. In September, they took approximately £13 in interest out of my account which pushed me just over the overdraft limit.
Then, a few weeks ago, due to a problem with a parcel not arriving, HMV resent a gift I had bought from them but, due to the bizarre way their accounting system works they retook the money from my account and recredited it a few days later. This meant that two cheques which were due to clear took me over the overdraft limit again. Not my mistake but HMV's.
Now, a few days ago, £1000 was being put into my account by a third party company and they didn't pay it in when they said they would due to an error at their end. Result? My account went over the overdraft limit again due to an outgoing payment.
Nationwide have now announced via letter that they are reducing my overdraft by £500 with effect from 25th November.
I've banked with them for 18 years and they were always very approachable and understanding in the past with anything like this on the extremely rare occasion it happened.
Now I find myself without any money to finance Christmas, and Nationwide couldn't care less. Speaking to them on the phone they simply weren't bothered about the fact that this left me in a very difficult position.
There's nothing I can do about it and I'm very annoyed, but it's my own fault I guess in relying on the overdraft.
So there we are. Nothing can be done, but it feels good to let off some steam.
I have a £2500 overdraft with Nationwide. In September, they took approximately £13 in interest out of my account which pushed me just over the overdraft limit.
Then, a few weeks ago, due to a problem with a parcel not arriving, HMV resent a gift I had bought from them but, due to the bizarre way their accounting system works they retook the money from my account and recredited it a few days later. This meant that two cheques which were due to clear took me over the overdraft limit again. Not my mistake but HMV's.
Now, a few days ago, £1000 was being put into my account by a third party company and they didn't pay it in when they said they would due to an error at their end. Result? My account went over the overdraft limit again due to an outgoing payment.
Nationwide have now announced via letter that they are reducing my overdraft by £500 with effect from 25th November.
I've banked with them for 18 years and they were always very approachable and understanding in the past with anything like this on the extremely rare occasion it happened.
Now I find myself without any money to finance Christmas, and Nationwide couldn't care less. Speaking to them on the phone they simply weren't bothered about the fact that this left me in a very difficult position.
There's nothing I can do about it and I'm very annoyed, but it's my own fault I guess in relying on the overdraft.
So there we are. Nothing can be done, but it feels good to let off some steam.
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Comments
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It seems that there is a massive conspiracy against you ... or your finances are pretty chaotic!
Don't spend money till you've got it, read the letters banks send you and if someone charged you twice for something, your redress is with them.
Overdrafts should be there for emergencies.0 -
I suspect there won't be an answer to this, but I feel I need to rant to get it off my chest.
I have a £2500 overdraft with Nationwide. In September, they took approximately £13 in interest out of my account which pushed me just over the overdraft limit.
Then, a few weeks ago, due to a problem with a parcel not arriving, HMV resent a gift I had bought from them but, due to the bizarre way their accounting system works they retook the money from my account and recredited it a few days later. This meant that two cheques which were due to clear took me over the overdraft limit again. Not my mistake but HMV's.
Now, a few days ago, £1000 was being put into my account by a third party company and they didn't pay it in when they said they would due to an error at their end. Result? My account went over the overdraft limit again due to an outgoing payment.
Nationwide have now announced via letter that they are reducing my overdraft by £500 with effect from 25th November.
I've banked with them for 18 years and they were always very approachable and understanding in the past with anything like this on the extremely rare occasion it happened.
Now I find myself without any money to finance Christmas, and Nationwide couldn't care less. Speaking to them on the phone they simply weren't bothered about the fact that this left me in a very difficult position.
There's nothing I can do about it and I'm very annoyed, but it's my own fault I guess in relying on the overdraft.
So there we are. Nothing can be done, but it feels good to let off some steam.
Sorry to hear the problems you have experienced but I have been with Lloyds for over 25 years and have an overdraft facility of £10,000 but the bank have never once tried to reduce it. During that time I have never breached the limit and is only there for emergencies. You say you have been with Nationwide for 18 years so they must know you very well and would normally not normally reduce your limit without good reason. By going over your limit (whether your fault or not) must sound alarm bells and being a responsible lender they have taken action or should I say their computer.0 -
At least they have given a few weeks notice to reduce your limit and not simply moved when your balance had risen a bit.
I agree. This should now become your New Year's Resolution: to ween yourself off that overdraft (which just got 25% dearer, by the way - rates went up from 7.75% to 9.9% on 1 November for everyone) and only dip in on a normally in-credit account. Basically, you have to save up £2500......under construction.... COVID is a [discontinued] scam0 -
I don’t know, how much your monthly income is, but, if it’s below £2500 net, you will be living permanently in your overdraft (in the beginning of the month, you’re somewhat overdrawn and at the end you are right up to your limit). Now you have breached your limit three times in as many months.
The bank is getting nervous, fearing you might go any moment into financial melt-down. OK, you say, it was not your fault, but, from the bank's point of view, that’s what they all say.
Take it as an alarm call. Do not rely on an overdraft to finance Christmas. After all, you know all year long, it will be coming end of December.0 -
Nationwide could have been much harsher than reducing it by £500. Hopefully other parts of this site will give you tips on how to enjoy a cheap Christmas.0
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Regarding being in permanent overdraft, well there are thousands of us living like that, probably hundreds of thousands. And I totally agree that it is not a good idea, and it is our own fault, and that the Banks are right to look at this. The quesion is whether the 'Big Bang' approach is the best way of dealing with the problem.
With OP, it is clearly giving problems, and whilst cancelling Christmas may be sensible, anyone with a family will know how hard that really is. However, in many cases, a drastic reduction will mean far more than that. For many, a drastic grab of £500 will leave hardly anything to live on, and even with drastic cutbacks, it could easily mean problems with other creditors, leading to a ruining of credit rating, fees, and ongoing problems. And once spiralling downwards, it is hard to get back on track. Is that really of benefit to anybody?
The simple solution would be to reduce the limit to £0 and put the overdraft on a loan account payable over 24/30/36 Months. Far easier, less painless, and probably better for the Bank. Do it in Branch and you get a good selling opportunity as a bonus. And Santa (Or has be been privatised as Santa Solutions Plc?)will still be visiting OP, as long as they are good between now and Christmas day! HoHoHo:santa2:0 -
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Santa Solutions Plc have out-sourced the toy delivery services, and are arranging for this to be done prior to Christmas to avoid the traffic and paying double-time for Bank Holiday and unsocial hours working. Mince pies are banned in case of a nut allergy.....
And Santa has been re-located to premised in Mumbai as an efficiency measure.......0 -
I have a £2500 overdraft with Nationwide...
...I've banked with them for 18 years...
...There's nothing I can do about it and I'm very annoyed, but it's my own fault I guess in relying on the overdraft.
Sounds more like Nationwide are banking with you rather than you banking your money with them.
Good news! There is something that you can do. TBH, there is nothing that anybody else but you can do. Time for a lightbulb moment and a visit to the DFW board.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
I found myself in a very similar situation with Nationwide this time last year. When you speak to collections - as I suppose with most companies - it all depends on who you get through to depending on how helpful they are. Nationwide wanted to reduce my overdraft from the £800 limit it was at to £400, after I started living permanently in the overdraft and occasionally exceeding my limit after a very sudden and significant drop in income. I phoned them, the person who I spoke to was very helpful, and agreed a reducing limit with them. This way, they will normally expect the entire limit to be paid off over the course of 18 months or less - in your case, you could probably agree to pay off from £135-140 per month. Word of warning though, as part of setting up a reducing overdraft limit, they may expect you to surrender your cheque book and possibly your debit card as well.0
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