Lloyds letter reduced my overdraft by £480, no warning

jorus

Letter from Lloyds reducing O/D by £480, saying I haven't used it. Not used it as I applied for a small loan from Lloyds just prior to Corona virus so its still in my account. Called but cut off; they say If I want to request my original amount back, I have to do a new application, which they say takes 30 mins over the phone. Worried in case this will reduce it further. Can I complain ?

TadleyBaggie

Nothing to complain about, banks may request overdrafts be repaid at any time with no notice. Reducing one that you are not currently using is pretty normal in these times.

born_again

You can complain.
But if you are not using the O/D then why.
Just what was the loan for? To get you out of the high interest O/D? If it was then look on Lloyds doing you a favour. In the long run it will save you interest.
If the loan was for the O/D and you said that is why, then reducing the o/d could well be standard procedure.

jorus

Loan was for garden project not yet fully completed or yet paid for due to Corona, OD reduction will cause me difficulty right now as I am unable to carry out my mental health work role due to social distancing rules/restrictions. I probably should have been clearer.

Ed-1

jorus said:

Letter from Lloyds reducing O/D by £480, saying I haven't used it. Not used it as I applied for a small loan from Lloyds just prior to Corona virus so its still in my account. Called but cut off; they say If I want to request my original amount back, I have to do a new application, which they say takes 30 mins over the phone. Worried in case this will reduce it further. Can I complain ?

There's a trick here. If you request online to reduce your overdraft by £50 it will automatically approve it and override their reduction, as long as you request it before their reduction kicks in.

redux

Ed-1 said:

jorus said:

Letter from Lloyds reducing O/D by £480, saying I haven't used it. Not used it as I applied for a small loan from Lloyds just prior to Corona virus so its still in my account. Called but cut off; they say If I want to request my original amount back, I have to do a new application, which they say takes 30 mins over the phone. Worried in case this will reduce it further. Can I complain ?

There's a trick here. If you request online to reduce your overdraft by £50 it will automatically approve it and override their reduction, as long as you request it before their reduction kicks in.

Even only £10 reduction

redux

jeepjunkie said:

It amazes me that people are happy to 'depend' on overdrafts without know what they are or the implications...

It's a valid point elsewhere, but this thread starts from the bank judging it's not used much.

colsten

redux said:

jeepjunkie said:

It amazes me that people are happy to 'depend' on overdrafts without know what they are or the implications...

It's a valid point elsewhere, but this thread starts from the bank judging it's not used much.

Which could make jeepjunkie's comment even more relevant: why take exception with rules you* don't understand if they don't even apply to you*?

* to be clear, I mean a generic 'you', not you personally 

Thrugelmir

Overdrafts are repayable on demand. Providing facilities (even unused) costs the bank money.  If you require the facility now you'll need to reapply. 

jonesMUFCforever

Had mine reduced by letter - no great shakes as I never used it - it was nice to have the facility ''just in case'' - anyway one day after it was reduced - I looked at the app and got it increased again to a figure I was happy with.

CRISPIANNE3

I have four Club card accounts and each one has an overdraft facility of £50.00 on each and that is only because it is free. Pointless really because the facilities are never used.