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  • FIRST POST
    • MSE Guy
    • By MSE Guy 28th Apr 09, 9:09 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    Has your overdraft been cancelled?
    • #1
    • 28th Apr 09, 9:09 PM
    Has your overdraft been cancelled? 28th Apr 09 at 9:09 PM
    We're hearing worrying stories of banks closing people's overdrafts, while they're overdrawn, without warning and sometimes adding charges because they're then in the red.

    We want to know how widespread this is, so please report your story if it's happened to you.


    Please include:
    • Current account provider
    • Overdraft limit before change
    • Overdraft balance at time
    • New overdraft limit after change
    • Whether this happened at an official overdraft review
    • Any charges
    • Whether you were notified
    See our news story for more information and the news story discussion thread to debate the issue.
    Last edited by Former MSE Helen; 05-09-2013 at 12:32 PM.
Page 11
    • spelmanp1
    • By spelmanp1 30th Aug 18, 3:08 PM
    • 4 Posts
    • 2 Thanks
    spelmanp1
    We have a £1000 overdraft with Halifax. It has been removed without any correspondence to us. I paid £200 in the other day to cover some direct debts and couldnít understand why they were returned. Iím supposed to be going on holiday in 29 days and have paid for my holiday but wonít be able to go if this is not sorted. We have 2 wages going in every month and I canít understand why they have done this to without discussing it with us. I am absolutely distraught. Does anyone have any advice. My husband has to go into work late as he has been on the phone to them for 2 hours, no result so far. Iíve been waiting for an hour and they havenít called back. I cannot believe that they have done this to us and that it is actually allowed.
    • worried jim
    • By worried jim 30th Aug 18, 3:14 PM
    • 10,915 Posts
    • 17,218 Thanks
    worried jim
    We have a £1000 overdraft with Halifax. It has been removed without any correspondence to us. I paid £200 in the other day to cover some direct debts and couldnít understand why they were returned. Iím supposed to be going on holiday in 29 days and have paid for my holiday but wonít be able to go if this is not sorted. We have 2 wages going in every month and I canít understand why they have done this to without discussing it with us. I am absolutely distraught. Does anyone have any advice. My husband has to go into work late as he has been on the phone to them for 2 hours, no result so far. Iíve been waiting for an hour and they havenít called back. I cannot believe that they have done this to us and that it is actually allowed.
    Originally posted by spelmanp1
    Mate, afrter 9 years I'm guessing the OP has got all the answers they need and the lending criteria may have changed somewhat since 2009.
    • Question77
    • By Question77 30th Aug 18, 3:14 PM
    • 7 Posts
    • 1 Thanks
    Question77
    I recived a letter telling me they where either reducing or removing mine can't remember which was some years ago. But basically it was a routine thing apprently they just went over what I was earning and outgoings and they just kept the overdraft the same and it stayed. Not sure why they did not send a letter or at least you should have recived a message on online banking.
    • spelmanp1
    • By spelmanp1 30th Aug 18, 3:18 PM
    • 4 Posts
    • 2 Thanks
    spelmanp1
    Pauline Spelman
    What do you mean??
    • Drp8713
    • By Drp8713 30th Aug 18, 4:07 PM
    • 871 Posts
    • 759 Thanks
    Drp8713
    We have a £1000 overdraft with Halifax. It has been removed without any correspondence to us. I paid £200 in the other day to cover some direct debts and couldnít understand why they were returned. Iím supposed to be going on holiday in 29 days and have paid for my holiday but wonít be able to go if this is not sorted. We have 2 wages going in every month and I canít understand why they have done this to without discussing it with us. I am absolutely distraught. Does anyone have any advice. My husband has to go into work late as he has been on the phone to them for 2 hours, no result so far. Iíve been waiting for an hour and they havenít called back. I cannot believe that they have done this to us and that it is actually allowed.
    Originally posted by spelmanp1
    It is allowed, they don't have to offer the facility.

    Do you always use the overdraft? Or have you used more and more of it recently?

    Maybe they are worried about the risk of you defaulting on it and removed it.

    If you have two wages coming in why are you reliant on debt to go on holiday? Can you really afford the holiday?

    Overdrafts are usually an expensive way to borrow, could you apply for a credit card instead? That way you get up to 56 days interest free if you pay in full.
    • eskbanker
    • By eskbanker 30th Aug 18, 4:07 PM
    • 11,674 Posts
    • 14,475 Thanks
    eskbanker
    We have a £1000 overdraft with Halifax. It has been removed without any correspondence to us. I paid £200 in the other day to cover some direct debts and couldnít understand why they were returned. Iím supposed to be going on holiday in 29 days and have paid for my holiday but wonít be able to go if this is not sorted. We have 2 wages going in every month and I canít understand why they have done this to without discussing it with us. I am absolutely distraught. Does anyone have any advice. My husband has to go into work late as he has been on the phone to them for 2 hours, no result so far. Iíve been waiting for an hour and they havenít called back. I cannot believe that they have done this to us and that it is actually allowed.
    Originally posted by spelmanp1
    They can do it and it is allowed - as per the Ts & Cs, overdrafts are repayable on demand, as they're intended to be used for short-term cashflow management rather than long-term debt.

    However, they should have notified you, so something would appear to have gone wrong somewhere and highlighting this to them may buy some time to sort out how to pay it back....
    • spelmanp1
    • By spelmanp1 30th Aug 18, 4:41 PM
    • 4 Posts
    • 2 Thanks
    spelmanp1
    Iím not relying on the debt to go on holiday but the fact it has been taken of us suddenly without communication is unfare.
    • worried jim
    • By worried jim 30th Aug 18, 6:30 PM
    • 10,915 Posts
    • 17,218 Thanks
    worried jim
    What do you mean??
    Originally posted by spelmanp1
    This thread is from a banking situation caused by the credit crunch in 2008, the thread is from 2009, banks decreased customers unused overdrafts so they appeared to not have as much money loaned out. You have randomly googled Halifax overdraft found this and reopened an old thread. If you start a new one you'll probably get much more current and up to date advice.
    • spelmanp1
    • By spelmanp1 31st Aug 18, 2:08 AM
    • 4 Posts
    • 2 Thanks
    spelmanp1
    They have now reinstated it and are going to compensate us. Thank you for your reply.
    • enthusiasticsaver
    • By enthusiasticsaver 31st Aug 18, 3:06 PM
    • 9,442 Posts
    • 21,883 Thanks
    enthusiasticsaver
    Overdrafts are repayable on demand but they should have given you some warning. I suggest you look at paying it off. Expensive way of borrowing unless it is free.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Tallaght
    • By Tallaght 31st Aug 18, 3:07 PM
    • 1,182 Posts
    • 972 Thanks
    Tallaght
    There seems to be a 'cull' with uk banks regarding overdrafts and cancelling them.
    • eskbanker
    • By eskbanker 31st Aug 18, 4:06 PM
    • 11,674 Posts
    • 14,475 Thanks
    eskbanker
    There seems to be a 'cull' with uk banks regarding overdrafts and cancelling them.
    Originally posted by Tallaght
    What makes you say that?

    There's obviously the occasional anecdotal report on here of an overdraft being withdrawn, but I'm not aware of any concerted and systematic effort by UK banks to do this, do you have any sources for this?
    • Thrugelmir
    • By Thrugelmir 6th Oct 18, 12:32 PM
    • 65,495 Posts
    • 57,628 Thanks
    Thrugelmir
    There seems to be a 'cull' with uk banks regarding overdrafts and cancelling them.
    Originally posted by Tallaght
    Banks need to hold regulatory capital for "credit" facilities. Whether they are used or not. Cutting back on facilities granted makes business sense.
    ďďthere really is no such thing as Ďthe futureí, singular. There are only multiple, unforeseeable futures, which will never lose their capacity to take us by surprise.ĒĒ
    ― Niall Ferguson
    • MABLE
    • By MABLE 6th Oct 18, 6:50 PM
    • 3,905 Posts
    • 2,056 Thanks
    MABLE
    With Nationwide they said I could go up to £2000 and then when ready to apply went down to £300. I queried this and was advised to check my credit report. I did nothing and about 10 days later £3000 was offered to me and a further 10 days went by and went up to £5000.

    Seem all very strange to me.
    • eskbanker
    • By eskbanker 6th Oct 18, 7:17 PM
    • 11,674 Posts
    • 14,475 Thanks
    eskbanker
    Another vanishing overdraft report here - also done in August.

    Had an account that as opened in 2002 and has had an £800 overdraft on it since it began. Was about £550 into the overdraft in July 2018 and assumed everything was OK. Checked my credit report today and shows 1 month (September) of being over my overdraft limit. Drilled down into the details on the credit report and my overdraft was removed in August (Limit = £0). I haven't been informed that it was being removed or been told in any way that I have now an unauthorised overdraft.

    So now my clean credit score is destroyed and here's the kicker, I have an mortgage application going through with the same bank so am petrified that this is going to derail the whole thing.

    Not sure as the best way to go about sorting this out!
    Originally posted by ShivasPlace
    Obviously a bank withdrawing an overdraft facility should notify the account-holder that this is being done, so in your shoes I'd file a formal complaint with them and seek its urgent reinstatement and rectification of credit file entries, at least for long enough to sort it out by arranging credit elsewhere.

    Having said that, if they withdrew the overdraft in August and you hadn't noticed two months later, this suggests that it's not an account that you monitor regularly and presumably not your main account? If so, leaving it overdrawn when applying to the same bank for a mortgage was perhaps unwise....
    • Shakin Steve
    • By Shakin Steve 6th Oct 18, 9:22 PM
    • 1,691 Posts
    • 1,465 Thanks
    Shakin Steve
    Yes. I'm sure if you look in the T&C's, it will tell you that they must give you a notice period.



    They might say that they sent a letter, of course.............
    I came into this world with nothing and I've got most of it left.
    • Shakin Steve
    • By Shakin Steve 6th Oct 18, 10:12 PM
    • 1,691 Posts
    • 1,465 Thanks
    Shakin Steve
    If my overdraft was withdrawn, I'd notice within a day, because I log on every day. Takes less than a minute, and the sooner something amiss is spotted, the better the chance of a swift resolution.
    I came into this world with nothing and I've got most of it left.
    • Dandytf
    • By Dandytf 7th Oct 18, 9:30 AM
    • 2,409 Posts
    • 540 Thanks
    Dandytf
    This takes me back to 2012 I think -Co OP cancelled all DD's withdrew 1495 overdraft
    I went online only for a few months before swapping to another provider who took a year or two to offer a small overdraft which I still have.
    Note:- making manual payment online worked well including mortgage and could even setup some continuos debit card payments which I did for quite some time.
    The cancelled OD when to Step Change and is still being paid I think Link to responsibility.
    sc dmp 2012 13k Jan 2019 9880paid. 75%approx.
    Mid 2018 Help2save 50 uk pounds per month
    Mid 2019-Virgin Money e-saver reward 18 -T.b.c.
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