HSBC reducing overdraft

moneyaspie2024

MoJoeGo said:

Well the obvious targets foe limit reductions are the customers at either end of the scale - the ones that are continuously at their limits and therefore in a form of persistent debt; and the ones that have a limit but never use it.

The former group are a pressing risk to the bank in terms of potential default (not to mention subsequent claims of irresponsible lending). The latter group are just an easy way of reducing the bank's theoretical maximum risk exposure, with hopefully the minimum level of fuss.

Yes I have a discussion about this on my latest post, Santander have recently gave mines the chop.

Some people like to have to have the overdraft there as a safety net, and to avoid bounced direct debits, the argument about responsible lending isn’t justified because as you said the customers who are at their limits are far riskier for the bank.