Nationwide reduced overdraft

buttonmoon
buttonmoon Posts: 152 Forumite
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in Savings & investments
Am a bit hacked off as I switched from Barclays to Nationwide on Feb. I opened a flex direct account with an interest free overdraft for 12 months as part of the deal. I have just received a letter reducing my overdraft from £2,750 to £2,000 on the basis of my credit scoring. The letter also states I will be charged 50p per day I use my overdraft (whereas I signed up to an overdraft with no charges for 12 months). I haven't gone over my overdraft limit, or missed any bill payments. I checked my middle credit file and the only thing which stands out is that there have been a number of credit searches as I have been looking for car insurance. I know banks can recall overdrafts at any time, but I am peeved as I have never had the done before!

I also overpay my Nationwide mortgage by £200 a month as well!

Tried to call the number on the letter and it was for collections but it was closed!
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Comments

  • oldfella
    oldfella Posts: 1,534 Forumite
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    I would take the original offer letter to the Bank to show the manager and ask him to explain why they have unilaterally changed the terms
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    buttonmoon wrote: »
    I checked my middle credit file
    I assume that's a typo and you meant Noddle? If so, check Experian and Equifax.
    and the only thing which stands out is that there have been a number of credit searches as I have been looking for car insurance.
    It might "stand out" to you, but it won't stand out to them as they won't be able to see them, being as they're not "credit searches" but ID searches, and are classed as unrecorded enquiries...unless of course you were intending to pay for it in instalments?.
    I also overpay my Nationwide mortgage by £200 a month as well!
    You say you've not gone over your overdraft limit, with the obvious inference that you've used some of the facility (and why wouldn't you...it's 0% interest)? So what you've been doing is overpaying your mortgage with their money...not your own? ;)
  • longleggedhair
    longleggedhair Posts: 462 Forumite
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    I banked with them some years ago, they cut my overdraft in half, the same as you say there was no good reason. I felt that it was a breach of trust so voted with my feet and left.

    My partner has had the same issue also and switched to TSB last month. They are much better, I've been with them for some years. Nationwide is a waste of time, and treat their "members " like cattle. I'd jump ship.
  • buttonmoon
    buttonmoon Posts: 152 Forumite
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    I'm going to ring them up later as there are no free meeting rooms at work at the moment. I quite often run up lots of expenses at work so it is handy to have a 0% overdraft. Im due to get £400 expenses tomorrow paid in.
  • eskbanker
    eskbanker Posts: 30,920 Forumite
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    buttonmoon wrote: »
    I quite often run up lots of expenses at work so it is handy to have a 0% overdraft. Im due to get £400 expenses tomorrow paid in.
    Many use a credit card rather than an overdraft to handle any such cashflow issues from employment expenses reimbursed in arrears, is that an option for you?
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    My guess is that the reference to 50p a day charging is a standard letter that hasn't been personalised for your 12 month introductory period.
  • buttonmoon
    buttonmoon Posts: 152 Forumite
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    Rang up Nationwide and they confirmed it was a standard letter and that I would continue to offer a fee free overdraft for 12 month. However, the only explaination they could offer that was that I had maybe used my overdraft too often and that they computer automatically reviews accounts every 6 months.

    I think this is something to bear in mind when switching is that Nationwide arbitrarily like to review accounts every 6 months. Whereas, Barclays (who I used to bank with) didn't normally (IME) review overdraft limits unless you broke the terms of my overdraft (which I never did)
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
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    buttonmoon wrote: »
    Whereas, Barclays (who I used to bank with) didn't normally (IME) review overdraft limits unless you broke the terms of my overdraft (which I never did)

    Barclays now review overdraft facilities annually, so to be fair this could be becoming an industry standard,
    : )
  • ceredigion
    ceredigion Posts: 3,709 Forumite
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    buttonmoon wrote: »
    Rang up Nationwide and they confirmed it was a standard letter and that I would continue to offer a fee free overdraft for 12 month. However, the only explaination they could offer that was that I had maybe used my overdraft too often and that they computer automatically reviews accounts every 6 months.

    I think this is something to bear in mind when switching is that Nationwide arbitrarily like to review accounts every 6 months. Whereas, Barclays (who I used to bank with) didn't normally (IME) review overdraft limits unless you broke the terms of my overdraft (which I never did)



    I appreciate different people have different experience's, but I stoozed my entire Nationwide overdraft for 50 weeks in that time the account saw no activity what so ever. They did an unrecorded search on me at some point according to the credit reference agencies . But this did not result in the stroppy letter that I was expecting.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    ceredigion wrote: »
    I appreciate different people have different experience's, but I stoozed my entire Nationwide overdraft for 50 weeks in that time the account saw no activity what so ever. They did an unrecorded search on me at some point according to the credit reference agencies . But this did not result in the stroppy letter that I was expecting.
    My experience too (not sure about the CRA search, but I assumed all banks/BSs providing current accounts took a monthly feed so no need for a separate search?), except I had 3 of them, and all maxed out to -£2.5K. One ran for the year, and the other two were cut short 10 months in like many of us on here experienced. It was 2-3 years ago though, so maybe they've tightened up since.
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