Santander won’t REDUCE my overdraft.

workerdave

I have a £2000 overdraft with Santander and I am weak and unable to resist spending it.

I have asked many times for them to reduce it whenever I have money spare (Never £2000, unfortunately!) but they refuse, claiming that my credit rating isn’t good enough! For a reduction! They tell me that to reduce it, they essentially have to reapply for a new overdraft and due to my rating, it gets rejected. 

They’re of course more than happy to continue charging me £32 a month. 

I think this is really unfair. Has anyone else encountered a similar problem? Any suggestions?

Retireby40

Tell them you have a gambling problem and they will reduce it for you. For example if you are at the max of it and you can clear £500 off tell them to reduce it to £1500. They can do it. Problem is they dont wont to at the moment. But if you go with a "gambling problem" they have a responsibility to help. If not threaten to go to the papers and say they are refusing. 

workerdave

Thank you, and thanks for not being judgemental.

Retireby40

£2000 isnt a great deal of debt in the grand scheme of things. With a few sacrifices and maybe abit of overtime here and there you could clear that soon enough. The last thing you probably want to do is tell Santander a lie or make a story up but it's probably the easiest way to get what you want. 

One thing I would say though is if you think you will need a mortgage with them or some credit down the line gambling problem is probably the wrong way to go. Is there any chance you can get your salary paid into that account and then set up a standing order to another account for you day to day costs and try leave any extra off the over draught.

Retireby40

Overdraft.

Willing2Learn

If it were me, I would make a written complaint.

Just googling this, it appears that a number of banks have a facility where you can reduce your overdraft limit online, in a branch or by phone.

Why has gambling been bought in to the discussion?

Edit:  in fact Santander say the following on their website:

Reducing or cancelling your overdraft facility

An overdraft has no specific end date, which means it will continue until either you tell us you no longer want it, or we give you notice that we're reducing it or removing it in full.

If you'd like to reduce or cancel your overdraft facility, you can do this through your online banking or please call 0800 9 123 123. Alternatively, visit your local branch

On the basis of the above, you definitely should complain.  You could even ask for compensation, as their refusal to reduce your overdraft has cost you money in fees and interest.

Sharon87

Is there a better bank account you can apply for to use as your main account? If you're not good at keeping out of the overdraft then that might be the way to go.
Also it may be the symptom of a larger budgeting problem. Maybe post an SOA to see if anyone can suggest anything to save on. I know I had so much trouble sticking to a budget and being in an overdraft it's hard to see a way out of it.

If you have another account and pay money into there, then pay a set sum each month into the Santander, then that might help.

Retireby40

It was only brought into the discussion as the OP has said he has asked and they have point blank refused. So if it was a last resort it was an option and the bank couldn't refuse that on basis of some kind of duty of care. Or responsible lending. 

John_

workerdave said:

I have a £2000 overdraft with Santander and I am weak and unable to resist spending it.

I have asked many times for them to reduce it whenever I have money spare (Never £2000, unfortunately!) but they refuse, claiming that my credit rating isn’t good enough! For a reduction! They tell me that to reduce it, they essentially have to reapply for a new overdraft and due to my rating, it gets rejected. 

They’re of course more than happy to continue charging me £32 a month. 

I think this is really unfair. Has anyone else encountered a similar problem? Any suggestions?

My suggestion is that you need to start acting with some discipline, and find your own way out of this. You simply can’t blame a bank for your spending issues.

Why not open another bank account with no overdraft facility, transfer only your spending money into that, and stop spending when it is empty?

workerdave

Thanks for being judgemental, John. If only i’d already have thought of that. 

Sea_Shell

If you have a £2000 overdraft, how much of it are you regularly using?   What do you want to drop it down to...£1000, £1500?