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Austin Allegro

Santander Drops Overdraft Limit By 90%

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I got a letter from Santander saying my current account overdraft limit has been reduced from £1000 to £100. :o

Now, I don't give a toss because I don't go overdrawn, but I would imagine this would cause a fair amount of consternation for some people who live on their overdrafts.

Oddly enough, in the same post, there was a letter from Santander trying to flog me a loan! :lol:

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I got a letter from Santander saying my current account overdraft limit has been reduced from £1000 to £100. :o

Now, I don't give a toss because I don't go overdrawn, but I would imagine this would cause a fair amount of consternation for some people who live on their overdrafts.

Oddly enough, in the same post, there was a letter from Santander trying to flog me a loan! :lol:

If you used it though, they pobably wouldn't take it away.

I think it is more likely because you never use it...

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I got a letter from Santander saying my current account overdraft limit has been reduced from £1000 to £100. :o

Now, I don't give a toss because I don't go overdrawn, but I would imagine this would cause a fair amount of consternation for some people who live on their overdrafts.

Oddly enough, in the same post, there was a letter from Santander trying to flog me a loan! :lol:

Yes, I bet that will be a shock to some, if they are relying on their overdrafts.

Does the loan offered, happen to have a higher interest rate than the overdraft?

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I got a letter from Santander saying my current account overdraft limit has been reduced from £1000 to £100. :o

Now, I don't give a toss because I don't go overdrawn, but I would imagine this would cause a fair amount of consternation for some people who live on their overdrafts.

Oddly enough, in the same post, there was a letter from Santander trying to flog me a loan! :lol:

How much notice did they give you before they cut it?

On a related bank ac. annecdotal. I applied to open a basic current account with the co-op, but it took several week to get accepted, and I had to hassle them for an answer. Has this delay happened to anyone else ?

Edited by Saving For a Space Ship

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On a related bank ac. annecdotal. I applied to open a basic current account with the co-op, but it took several week to get accepted, and I had to hassle them for an answer. Has this delay happened to anyone else ?

I will tell you in a months time.

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I got a letter from Santander saying my current account overdraft limit has been reduced from £1000 to £100. :o

Now, I don't give a toss because I don't go overdrawn, but I would imagine this would cause a fair amount of consternation for some people who live on their overdrafts.

Oddly enough, in the same post, there was a letter from Santander trying to flog me a loan! :lol:

IIRC Santander is offering 5% interest rate on a current account. That sounds a bit desperate to me. A tad "Icelandic". :unsure:

.

Edited by Tired of Waiting

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Yes, I bet that will be a shock to some, if they are relying on their overdrafts.

Does the loan offered, happen to have a higher interest rate than the overdraft?

As far as I know no other notice was given. It wasn't even a letter, just a slip with a message on it. The loan rate was something like 9%, which was probably more than the overdraft, but since I never used it I didn't check it.

Would be interested to know if this has happened to others though, especially those who rely on overdrafts. Though us HPCrs don't do that do we...? :D Perhaps I'll try Mumsnet.

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Got a similar letter off floyds *****ing, don't rely on an overdraft but still use it, as I laboured under the misapprehension that my money was worth more in a savings account than in my current account, but no! 1.5% in my current, 0.5% in my saving account when i checked! So it's actually worth my while chucking in a couple of hundred as a float into the current account. I'd actually chuck the lot in but then some horrible card fraud shennanigans would be bound to happen by sod's law. I should look for another savings account as well...

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I believe they changed the rules a while back so that capital has to be set aside for credit limits (not just amounts lent) so unused credit limits now cost the banks money. Hence they actively manage them more nowadays.

Interesting - thanks for that. Sounds like a plausible reason for the OP to me.

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I was surprised that Barclays did not reduce my £10K overdraft facility, which they don't charge me for and I never use, when I retired nearly three years ago. I also have a £10K limit on my Barclaycard, which I pay in full by direct debit every month, so I could run up £20K with them at any time I choose. I only keep a few grand in my Barclays deposit account as their interest rates are crap and they have no security. Perhaps I'll get a couple of letters soon.

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As far as I know no other notice was given. It wasn't even a letter, just a slip with a message on it. The loan rate was something like 9%, which was probably more than the overdraft, but since I never used it I didn't check it.

Would be interested to know if this has happened to others though, especially those who rely on overdrafts. Though us HPCrs don't do that do we...?  :D  Perhaps I'll try Mumsnet.

It depends, if you can agree an interest free one for a set time, and use it, while saving in a different account, it makes sense. And for bulk buying goods before price hikes.

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I got a letter from Santander saying my current account overdraft limit has been reduced from £1000 to £100. :o

Now, I don't give a toss because I don't go overdrawn, but I would imagine this would cause a fair amount of consternation for some people who live on their overdrafts.

Oddly enough, in the same post, there was a letter from Santander trying to flog me a loan! :lol:

I got a letter last year from Lloyds saying that they were going to remove my £1,200 overdraft facility, unless I asked them not to.

I phoned up, and asked them not to.

I don't use it, but I still have it just in case.

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Would be interested to know if this has happened to others though, especially those who rely on overdrafts. Though us HPCrs don't do that do we...? :D Perhaps I'll try Mumsnet.

I had something similar happen with their CC. The deal was I could keep the credit limit as long as I used the card within a couple months of the letter. I could not be bothered to ask for the pin and then remember to pay off the box of matches or whatever else I might have bought, so the limit was reduced.

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Hmmm ...

You folks all seem not only to have an overdraft limit, but to know it. I expect I must have one, but I don't recollect ever being told. Where would i expect to find out?

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Hmmm ...

You folks all seem not only to have an overdraft limit, but to know it. I expect I must have one, but I don't recollect ever being told. Where would i expect to find out?

Normally somewhere on your bank statement.

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I got a letter from Santander saying my current account overdraft limit has been reduced from £1000 to £100. :o

Now, I don't give a toss because I don't go overdrawn, but I would imagine this would cause a fair amount of consternation for some people who live on their overdrafts.

Oddly enough, in the same post, there was a letter from Santander trying to flog me a loan! :lol:

Presumably there will be hoardes of chavs now also bricking up Santander Branches shouting 'we was robbed'

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Normally somewhere on your bank statement.

Don't get statements. All my details online. Just looked it up, can't find any mention of an overdraft.

By contrast, the creditcard (same bank, same online access, paid in full by monthly direct debit) always tells me exactly how much credit I have available (i.e. difference between current balance and credit limit).

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Don't get statements. All my details online. Just looked it up, can't find any mention of an overdraft.

By contrast, the creditcard (same bank, same online access, paid in full by monthly direct debit) always tells me exactly how much credit I have available (i.e. difference between current balance and credit limit).

You normally need to ask for an overdraft facility in the first instance, they rarely hand them out as a matter of course, although most premier type accounts do include an automatic facility. I would doubt that you have a facility unless it is on your statement, be it paper or online. There is often an annual arrangement fee.

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I believe they changed the rules a while back so that capital has to be set aside for credit limits (not just amounts lent) so unused credit limits now cost the banks money. Hence they actively manage them more nowadays

that is exactly right

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How much notice did they give you before they cut it?

On a related bank ac. annecdotal. I applied to open a basic current account with the co-op, but it took several week to get accepted, and I had to hassle them for an answer. Has this delay happened to anyone else ?

the co-op is one of the two banks that gives bankrupts an account... perhaps they're busy at the moment?

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  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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