Lloyds bank overdraft limit reduced

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JimArnold
JimArnold Posts: 519 Forumite
in Budgeting & bank accounts
Has anyone else had a letter from Lloyds (not from their branch) reducing their overdraft limit because they don't use it ?

they hid behind the 'need to be a responsible lender' but in reality it seems like they aren't making enough money from my account
TANSTAAFL !
«13

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  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    Makes sense, if you are not using it then suggests you don't need it.

    Why is it an issue for you?
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    I agree. How is it a problem if you are not using the facility?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    No one is hiding.

    If you’re not using it you don’t need it.

    Not that you should use an overdraft in any instance anyways.
  • born_again
    born_again Posts: 14,435 Forumite
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    Why would the branch send the letter? All accounts are worked from central offices. NOT your branch.

    But if you are not using it, then what is the issue? If you should need one going forward, then you can simply reapply.

    They are right. If you are not using it then it is being a responsible lender.
    Life in the slow lane
  • JimArnold
    JimArnold Posts: 519 Forumite
    edited 12 November 2019 at 7:21PM
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    I can think of lots of reasons
    1) having the facility in case of emergencies
    2) Lloyds website going down AGAIN
    3) I dont leave money in my current account just transfer it from a deposit account when needed In case of me making an error (I'm not perfect) and not having sufficient funds to cover a direct debit
    How long do you think it would take to repair my credit history If a payment was refused ?

    yes I have lost of other possible sources of credit and would usually have better ones than an overdraft
    TANSTAAFL !
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    So you want it 'just in case'?

    Thing is an overdraft is at banks discretion and Lloyds have reduced yours. So you need to live within that new limit.
  • Sea_Shell
    Sea_Shell Posts: 9,376 Forumite
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    Yes. Mine got reduced, as I wasn't using it and had it just in case.

    No problem, no drama. Just need to be more careful with my money shuffling!
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.31% of current retirement "pot" (as at end March 2024)
  • JimArnold
    JimArnold Posts: 519 Forumite
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    yes I want it just in case - thats why sensible people ensure they have credit available and yes I know it is at a banks discretion - please don't bother telling me something I know.

    I asked if anyone else had received a similar letter - it looked computer generated
    TANSTAAFL !
  • JimArnold
    JimArnold Posts: 519 Forumite
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    Sea_Shell wrote: »
    Yes. Mine got reduced, as I wasn't using it and had it just in case.

    No problem, no drama. Just need to be more careful with my money shuffling!

    Thanks - Yes I will have to be more careful when money shuffling
    TANSTAAFL !
  • Carrot007
    Carrot007 Posts: 4,534 Forumite
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    JimArnold wrote: »
    yes I want it just in case - thats why sensible people ensure they have credit available and yes I know it is at a banks discretion - please don't bother telling me something I know.

    I asked if anyone else had received a similar letter - it looked computer generated


    Well ;-)


    Most probably was.


    Questions for you would be, how much is it? £1000 seem like a reasonable fall back, more not so much. How much do you use it? Never? Then of course they will remove it by computer, makes sense.


    And no I have not had a letter and use mine a couple of times a year and it is £1000. You?
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