Lloyds bank overdraft limit reduced

JimArnold

Has anyone else had a letter from Lloyds (not from their branch) reducing their overdraft limit because they don't use it ?

they hid behind the 'need to be a responsible lender' but in reality it seems like they aren't making enough money from my account

BoGoF

Makes sense, if you are not using it then suggests you don't need it.

Why is it an issue for you?

Willing2Learn

I agree. How is it a problem if you are not using the facility?

[Deleted User]

No one is hiding.

If you’re not using it you don’t need it.

Not that you should use an overdraft in any instance anyways.

born_again

Why would the branch send the letter? All accounts are worked from central offices. NOT your branch.

But if you are not using it, then what is the issue? If you should need one going forward, then you can simply reapply.

They are right. If you are not using it then it is being a responsible lender.

JimArnold

I can think of lots of reasons
1) having the facility in case of emergencies
2) Lloyds website going down AGAIN
3) I dont leave money in my current account just transfer it from a deposit account when needed In case of me making an error (I'm not perfect) and not having sufficient funds to cover a direct debit
How long do you think it would take to repair my credit history If a payment was refused ?

yes I have lost of other possible sources of credit and would usually have better ones than an overdraft

BoGoF

So you want it 'just in case'?

Thing is an overdraft is at banks discretion and Lloyds have reduced yours. So you need to live within that new limit.

Sea_Shell

Yes. Mine got reduced, as I wasn't using it and had it just in case.

No problem, no drama. Just need to be more careful with my money shuffling!

JimArnold

yes I want it just in case - thats why sensible people ensure they have credit available and yes I know it is at a banks discretion - please don't bother telling me something I know.

I asked if anyone else had received a similar letter - it looked computer generated

JimArnold

Sea_Shell wrote: »

Yes. Mine got reduced, as I wasn't using it and had it just in case.

No problem, no drama. Just need to be more careful with my money shuffling!

Thanks - Yes I will have to be more careful when money shuffling

Carrot007

JimArnold wrote: »

yes I want it just in case - thats why sensible people ensure they have credit available and yes I know it is at a banks discretion - please don't bother telling me something I know.

I asked if anyone else had received a similar letter - it looked computer generated

Well ;-)


Most probably was.


Questions for you would be, how much is it? £1000 seem like a reasonable fall back, more not so much. How much do you use it? Never? Then of course they will remove it by computer, makes sense.


And no I have not had a letter and use mine a couple of times a year and it is £1000. You?