Can the bank reduce my authorised overdraft?

MBaines

I've got myself into a major amount of bother... last year I wanted to go travelling for a few months and had trouble getting a loan. So I increased my authorised overdraft to £10,000 and am now around the £7000 overdrawn mark.

I'm about to start clearing it and can reasonably expect to clear £300 per month of it. However I am concerned that the bank could reduce my authorised overdraft limit on a whim, dooming me to getting swallowed in charges and being unable to clear it.

Getting a loan to clear it wouldn't be an option... I have trouble getting loans, apparently because I tend to move home every 6 months. A little silly since I have other credit, am not overcommitted and have never missed a payment or been in arrears on any credit account, but that's their reasoning.

Would they be able to do this? I have been led to believe that an overdraft limit only applies for 12 months from change... and I believe the anniversary of the change is only 5 months away...

Tila_2

Hi

With overdrafts unfortnately the bank can withdraw it any any time with 30 days notice.

How ever provided your account is in good order then there shouldnt be any reason so as to why they would remove it.

Generally it gets renewd automatically on an annual basis.

Regards

sparky0107

Hi mbaines,
Banks can alter your overdraft at any time, they only have to give you about 1 months notice, the same thing is happening to me in April, got a letter out of the blue from them this week

bathgatebuyer

They can and do withdraw with a month's notice just as they can withdraw banking facilities with anyone they choose to.