NatWest closing my 2 Reward accounts out of the blue

soulsaver

They must have improved their behaviour because last year they were giving 60 days notice...but freezing online access; insisting you take proof of id to a branch and then telling you that you will have to wait upto 6 weeks for your money.
And then not allowing access then either in some reported cases.

WillPS

Alex9384 said:

colsten said:

I don't think there's any way you could ever find out. We can all speculate but nobody can know for sure, and Natwest won't tell you.

Your credit file will show that the accounts were closed but it will not show who closed them or why. No reason to stress about the credit file, and no reason for not switching both accounts on  the same day.

Isn't it stupid that instead of telling you they don't like something, they just close your accounts?

This is why we should never allow a cashless society. Being completely at the mercy of bankers is a terrible thing.

So it seems like I should start switching to HSBC. Their account opening process can take weeks. Who knows, maybe I'll find out I'm not even eligible.

If I were you, I'd be opening and switching in to Monzo or Starling (who normally open accounts instantly) rather than waiting for HSBC to run down the clock and potentially leave you without banking facilities.

You can always do an onward/different switch once you've got that sorted.

colsten

I am speculating but may be your applications for the overdrafts prompted Natwest to have a closer look at your credit files and they decided that the total amount of credit available to you makes you a risk they aren’t happy with. Similar could happen at other banks if you continue to add to your available credit without putting an upper limit to it.

Alex9384

soulsaver said:

They must have improved their behaviour because last year they were giving 60 days notice...but freezing online access; insisting you take proof of id to a branch and then telling you that you will have to wait upto 6 weeks for your money.
And then not allowing access then either in some reported cases.

I thought this only happens where there is a suspicion of fraud / money laundering.

Alex9384

colsten said:

I am speculating but may be your applications for the overdrafts prompted Natwest to have a closer look at your credit files and they decided that the total amount of credit available to you makes you a risk they aren’t happy with. Similar could happen at other banks if you continue to add to your available credit without putting an upper limit to it.

Maybe. But still, why would they close accounts instead of just removing the overdraft(s).

Alex9384

WillPS said:

If I were you, I'd be opening and switching in to Monzo or Starling (who normally open accounts instantly) rather than waiting for HSBC to run down the clock and potentially leave you without banking facilities.

You can always do an onward/different switch once you've got that sorted.

I already have both Monzo and Starling so maybe I'll switch to them.

Btw, anyone knows how to downgrade NatWest accounts to Select?

I'm just looking at this - https://supportcentre.natwest.com/Searchable/913207112/How-do-I-downgrade-my-account.htm
but can't see the 'Change my account' button they are referring to.

jimjames

Alex9384 said:

jimjames said:

If you have an overdraft and pay in money and immediately remove almost the same amount I guess they're seeing it as not consistent with the use of an account as a main account with that fairly substantial facility. Seems odd that they'd approve a new account but maybe the new one triggered the review process. Is there a reason for having the overdraft so big, it's not exactly a cheap way to borrow?

Presumably unlike many other posters here you actually have multiple other bank accounts you can use?

Switch to Virgin for the wine? I'd definitely downgrade asap to cut that cost.

I never use OD, I just want to have it. I believe it looks better on my credit files as it shows that my banks trust me. Well, except NatWest.   I also regularly increase limits on my credit cards for the same reason, whenever I'm eligible for the increase.

Btw, this overdraft is big? I thought it's a common thing to have an OD of 2k to 3k.

Others may be better placed to comment but £2-3k overdraft each on 2 accounts sounds high to me especially if it's never being used. I can't see the point in having it and not sure that would help credit rating as it would with a good credit card limit. Overdraft has the perception to me (rightly or wrongly) that it's problem living within your means if you spend more than you earn especially at a rate of 39%. Credit cards paid in full at high limits would give a better indication of responsible credit use.

Alex9384 said:

colsten said:

I don't think there's any way you could ever find out. We can all speculate but nobody can know for sure, and Natwest won't tell you.

Your credit file will show that the accounts were closed but it will not show who closed them or why. No reason to stress about the credit file, and no reason for not switching both accounts on  the same day.

So it seems like I should start switching to HSBC. Their account opening process can take weeks. Who knows, maybe I'll find out I'm not even eligible.

Out of all the accounts I've opened the most laborious and most hassle was HSBC so be prepared for that! Opened a BoS account at weekend, so easy in comparison!

Zanderman

Alex9384 said:

I never use OD, I just want to have it. I believe it looks better on my credit files as it shows that my banks trust me. Well, except NatWest.   I also regularly increase limits on my credit cards for the same reason, whenever I'm eligible for the increase.

Btw, this overdraft is big? I thought it's a common thing to have an OD of 2k to 3k.

jimjames said:

Others may be better placed to comment but £2-3k overdraft each on 2 accounts sounds high to me especially if it's never being used. I can't see the point in having it and not sure that would help credit rating as it would with a good credit card limit. Overdraft has the perception to me (rightly or wrongly) that it's problem living within your means if you spend more than you earn especially at a rate of 39%. Credit cards paid in full at high limits would give a better indication of responsible credit use.

I'm with jimjames on this. 
An overdraft implies, to me, living beyond - or potentially living beyond - your means.
Several overdrafts amplifies that impression.
Whereas a credit card, paid off each month, implies 'can be trusted with credit'.
I always make a point of saying NO to an overdraft when offered - and I have lots of accounts where it has been offered!
I regard having an overdraft facility - whether used or not - as something that looks bad on credit files, not good. 
Banks annoy me even if they default me to a basic one - I think the Coop offer me a £200 one, which has never ever been used.  Several thousand seems a lot! 

Thrugelmir

Alex9384 said:

jimjames said:

If you have an overdraft and pay in money and immediately remove almost the same amount I guess they're seeing it as not consistent with the use of an account as a main account with that fairly substantial facility. Seems odd that they'd approve a new account but maybe the new one triggered the review process. Is there a reason for having the overdraft so big, it's not exactly a cheap way to borrow?

Presumably unlike many other posters here you actually have multiple other bank accounts you can use?

Switch to Virgin for the wine? I'd definitely downgrade asap to cut that cost.

I never use OD, I just want to have it. I believe it looks better on my credit files as it shows that my banks trust me. Well, except NatWest.   I also regularly increase limits on my credit cards for the same reason, whenever I'm eligible for the increase.

How many bank accounts do you operate? 

Asking for higher credit limits serves no practical purpose. Other than to draw suspicion to oneself. 

jimjames

Just thinking about this a bit more, would a credit check even show an overdraft if it wasn't being used? I can't recall ever seeing one listed on my account when I've checked my credit file. In which case it makes even less sense to bump up limits that are not even needed.