Graduate overdraft removed without warning

PJHilder

I have a graduate account with LloydsTSB with a £1650 overdraft (first £1000 interest free). I've been paying off £100 a month and getting the overdraft lowered the same amount in order to clear it. Good money sense you see.

Anyway I made my payment at the beginning of the month as usual and thought nothing more about it. Some background history, I don't use the account for everyday banking after they replaced my debit card with a cash card. Using a Citibank account now.

Got a call this afternoon (Sun) from the collections department of LlloydsTSB saying I had an unarranged overdraft of £1650 which needed paying now. Well of course this was news to me. I told him I hadn't received any word that my overdraft was going to be withdrawn. So I basically re-arranged the overdraft and the payment schedule.

Fine I thought, until he said we'll raise it to £1900 to start. I asked why so high and he said to cover the charges, all £250 of them. :eek:

Of course this is when I find out about the new charges and how it's now per day. Up to this point I'd only been paying £2-3 a month in interest so you can see why I was a bit peeved. After all that's nearly 3 months of payments wasted.

He said I would have to speak to my branch about the charges.

It feels like no matter how much effort you make to keep within budget some company has to make it harder.

dunstonh

graduate overdrafts do expire. The notifications, IIRC, are in the statement.

It probably wasnt withdrawn but just expired.

PJHilder

dunstonh wrote: »

graduate overdrafts do expire. The notifications, IIRC, are in the statement.

It probably wasnt withdrawn but just expired.

Would they normally write to you to say when it's going to expire?

jonesMUFCforever

All statements with an overdraft facility have the date of review on them just under the title of the account.

Squirrel29

I have to agree with you PJ and I would speak to the branch and see if you can get these charges refunded. Even with overdraft reviews they should write to you and give you warning that the overdraft facility is being withdrawn,not just whip it away.

I am with Nationwide and I think they give you approx 3 weeks notice of this to allow you to make alternative arrangements or pay funds in to repay it.

PJHilder

ejones999 wrote: »

All statements with an overdraft facility have the date of review on them just under the title of the account.

Do they normally remove the overdraft at this date without prior warning?

PJHilder

Squirrel29 wrote: »

I have to agree with you PJ and I would speak to the branch and see if you can get these charges refunded. Even with overdraft reviews they should write to you and give you warning that the overdraft facility is being withdrawn,not just whip it away.

I'm going to pop into the branch this lunchtime while at work. I have the various letters they've sent me, including one saying don't worry about the previous letter saying you'll be charged because it was wrong.

jonesMUFCforever

PJHilder wrote: »

Do they normally remove the overdraft at this date without prior warning?

They reserve the right to yes - if the conduct of the account is not good or an internal credit review suggests problems elswhere.

gt94sss2

PJHilder wrote: »

Some background history, I don't use the account for everyday banking after they replaced my debit card with a cash card.

I suspect this is the reason why Lloyds have not renewed your overdraft..

Regards
Sunil

jonesMUFCforever

gt94sss2 wrote: »

I suspect this is the reason why Lloyds have not renewed your overdraft..

Regards
Sunil

This would suggest to me something untoward on his credit file.

PJHilder

gt94sss2 wrote: »

I suspect this is the reason why Lloyds have not renewed your overdraft..

Hmm, but wouldn't they have seen the payments I've been making to clear the overdraft? Seems a strange way to treat someone who's making an effort to clear his debts.