Nationwide are reducing my overdraft facility

Chadsman

If none of it really wasnt your fault I would try a grovelling letter to them saying such and as you have been a loyal customer asking them to waive the charges on this one occasion.
But dont go in all guns blazing, that will just wind up the person who happens to open the letter.
Best of luck.
:beer:

martinallen72

I am in a similar situation with HSBC. They have decided to completely remove my overdaft facility of £1500 and wanted it all by 12 November (giving me less than 1 month's notice!). I wrote to them offering a repayment of £110 per month to clear this as I would not be in a position to pay back in one go and doing so would cause me very severe financial hardship. I completed an income/expenditure form for them showing my disposable income and how much I could reasonably afford to pay back - acknowledging that even £110 per month was pushing it! They wrote back to me with a standard letter refusing to accept this offer. They gave no explanation, just a point blank refusal, and asked me to call to discuss how to resolve it. I do not trust HSBC and have written back saying that I want all correspondence in writing. I have re-offered my £110 per month and asked for an explanation as to why £110 per month is not acceptable and what they would suggest instead. I think it is very important to have things in writing when dealing with banks, just in case you need to refer to it at a later date. I also wonder whether anyone else has any ideas on what I could do and whether £110 per month repayment for a £1500 overdraft is reasonable.

Best of luck to the thread poster with their dealings!

MABLE

Sorry I find it so hard to believe a bank will demand repayment of an overdraft and refuse to discuss a repayment schedule without good reason. During my time with Lloyds in the 90's they were very keen for customers to make use of their overdraft facility and was only withdrawn for a good reason.

I also have a Flex account with Nationwide and had an overdraft facility of £170.00. They wrote to me a little while ago and said the facility was being withdrawn as the account was never used. I hasten to add I never touched the overdraft. On this occasion they had a very good reason for withdrawing it.

However if a customer go over their limits you can understand the bank acting the way they do.

martinallen72

I would certainly not disputing my situation. I accept I have gone over my facility a few times, despite requesting (and being refused permanent and temporary extensions), sometimes as a result of a salary problem and more often as a result of spiralling charges that result in your being even shorter the following month and pushing you over again. However, that is being dealt with through the reclaiming charges situation. Refusal by my bank to listen and help is a real blow. I have since transferred my salary to another bank because of my problems with HSBC and it could be this that has prompted them to take away the facility. Whatever the reason, the lack of support and compassion, and above all...explanation...is very demoralising and worrying.

MABLE

martinallen72 wrote: »

I would certainly not disputing my situation. I accept I have gone over my facility a few times, despite requesting (and being refused permanent and temporary extensions), sometimes as a result of a salary problem and more often as a result of spiralling charges that result in your being even shorter the following month and pushing you over again. However, that is being dealt with through the reclaiming charges situation. Refusal by my bank to listen and help is a real blow. I have since transferred my salary to another bank because of my problems with HSBC and it could be this that has prompted them to take away the facility. Whatever the reason, the lack of support and compassion, and above all...explanation...is very demoralising and worrying.

By transferring your salary to another bank no doubt did not help the situation and bearing in mind you have not kept within their terms and conditions has not helped your cause. I would have thought it was a condition of the overdraft facility that a regular amount was paid in each month. Now you are claiming your charges back so why should HSBC do you any favours.

I feel if you were still paying salary in they would have accepted your offer but on the face of it they seem to have very little trust in you. However the glimmer of hope is when you do get your charges back this may be enough to clear the overdraft.

My experience with banks is provided you keep them informed and do not go beyond your agreed limits they will do there best to help.

Scousebird_2

RayWolfe wrote: »

Overdrafts should be there for emergencies.

I work in banking myself and people do rely on their overdrafts. Thing is though, there's having it for emergencies and then there's relying on it to live.

Overdrafts are not designed for long term borrowing, if you get to a point where realistically, you don't see yourself getting 'out of the red' within 6 months then take my advice, and I speak from personal experience in my own life, don't be afraid to get a Personal Loan. An Overdraft and MOST personal loans are unsecured borrowing. The outcome of having a loan or an overdraft is the same, you pay interest on what you borrow regardless of whether your wages top it back into the black or not. At least on a personal loan, you see every last penny you pay over a set amount of time that you can afford. Besides, if you keep getting charges on your accounts because you lose control of your overdraft, it isn't going to be good for you. If you are going to permenently live in your overdraft, which I did for 2 years, take a loan to consolidate ALL you borrowing, clear the overdraft, reduce it when you draw down your loan and take the weight off your shoulders. Believe me, when I did it, I started to live again and I don't have to worry about what interest I pay for using my overdraft and worrying how I can afford to repay and where the next meal would come from. If you are even in trouble, don't wait for the bank to call you. Call them or go into your local branch and talk to them, because as soon as you end up with debt you can't repay, it's all downhill from there. Stand up and fight the debt and beat it, don't let the 'financial devil' beat you!!!

Scousebird_2

MABLE wrote: »

My experience with banks is provided you keep them informed and do not go beyond your agreed limits they will do there best to help.

CORRECT!!!!!!!!!! You have the right attitude. I appreciate people make mistakes, sometime I often wonder though, once, twice I can cope with, but when it's persistent, I often wonder where to draw the line!

Dylanwing

My experience with banks is provided you keep them informed and do not go beyond your agreed limits they will do there best to help.

Certainly not my experience - Sometimes they are, and even exceed my expectations, other times they are just totally unreasonable and inflexible.

However if a customer go over their limits you can understand the bank acting the way they do.

No I can't for the reasons detailed in my earlier post - I can understand them wanting it reduced, but not expecting a large sum in one hit.
Scousebird - Spot on about personal loans, but some Banks will not lend to pay off an overdraft, even though it makes a lot of sense, and benefits both parties.
:xmassmile Jingle Bells Jingle Bells, Jingle all the way
We have cut your overdraft and taken all your pay...:xmassign:

RayWolfe

Thank you scousebird for a very sensible post, Too many people here are unwilling to face facts and expect everyone else to pull their irons out of the fire instead of facing up to their responsibilities.

crazyfj

Debt is a funny thing, lately on this board the person in debt is 100% to blame. I don't quite a agree, a bank, credit card company etc all have a responsibility to the borrower.

The bank should encourage and help the person reduce the overdraft, after all they offered it in the first place.