bomberbrown Posted January 30, 2011 Share Posted January 30, 2011 (edited) Probably belongs in anecdotals, but hey ho. I have two current accounts, one where I get my wages put into and use for day to day spending (LloydsTSB), and another that I use purely for paying the monthly bills that I transfer a portion of my monthly wage into (Natwest). Just got a letter from Natwest saying that they're taking my overdraft away (£2,400) as I don't use it. Fair enough I thought, but I'm shocked. Shocked that this account had a £2,400 overdraft limit and I wasn't aware of it! This must be good news, right? Edited January 30, 2011 by bomberbrown Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 30, 2011 Share Posted January 30, 2011 I wonder if they've done this because it's not your primary account and you don't pay your wages into? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 30, 2011 Share Posted January 30, 2011 Just had a letter from BOS. they said they regretted but having reviewed my account, they were reducing my credit limit to £500 and in two months the account was to be closed. Worrying stuff, so I rang them to enquire. well, it was to protect my credit rating, apparently. and the positive balance they owed me...they are sending a cheque. Farewell. Course, the problem for those followers of MSE who have hopes to use their credit cards in times of stress....well may well find that particular avenue of emergency finance is fast being closed. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted January 30, 2011 Author Share Posted January 30, 2011 I wonder if they've done this because it's not your primary account and you don't pay your wages into? More than likely. But it's been like this for the past 10 years since I opened the account up. Why the sudden pruning and housekeeping on Natwest's part? Quote Link to comment Share on other sites More sharing options...
AndyAndy Posted January 30, 2011 Share Posted January 30, 2011 (edited) Just had a letter from BOS. they said they regretted but having reviewed my account, they were reducing my credit limit to £500 and in two months the account was to be closed. Worrying stuff, so I rang them to enquire. well, it was to protect my credit rating, apparently. and the positive balance they owed me...they are sending a cheque. Farewell. Course, the problem for those followers of MSE who have hopes to use their credit cards in times of stress....well may well find that particular avenue of emergency finance is fast being closed. BoS is worse than anyone imagined - its a complete basket case. Lloyds is very sick about it. Interesting you have a BoS personal account as they sought to shift most of these to Halifax as it was planned Halifax would be the retail bank and BoS the commercial lending and investment bank in the combined out fit. Alas both ended up being very poor at what they did. Edited January 30, 2011 by AndyAndy Quote Link to comment Share on other sites More sharing options...
AndyAndy Posted January 30, 2011 Share Posted January 30, 2011 More than likely. But it's been like this for the past 10 years since I opened the account up. Why the sudden pruning and housekeeping on Natwest's part? My understanding is tier one capital requirements are tightening and will continue to do so. Uncommited facilities of banks (which is in effect what your unutilised o'draft is) count as a partial loan when a bank is measured on its own liquidity. For an company with such a thing, they have to pay quite a lot for it. You probably have to pay nothing. Its been widely forecast by business that a liquidity wall is heading down the track this year what with the PIGS being, well, pigs to deal with and all. So banks are squaring themselves up for the tightening liquidity again. Interestingly a house near us in NE went on at £375k after much renovation. I have to say the renovation is hiddious although its expensive stuff. It last sold for £355k in 2004.I wonder what the conversations have being like over the hedge as the numb tu&d next door stuck his on at £475k the week before and its a smaller house. Sorry not trying to hijack this thread just thought I'd mention that somewhere as I think its funny. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 30, 2011 Share Posted January 30, 2011 BoS is worse than anyone imagined - its a complete basket case. Lloyds is very sick about it. Interesting you have a BoS personal account as they sought to shift most of these to Halifax as it was planned Halifax would be the retail bank and BoS the commercial lending and investment bank in the combined out fit. Alas both ended up being very poor at what they did. Sorry, I didnt mention it was an NSPCC credit card...a proportion of the spend went to NSPCC...issued by BOS. Quote Link to comment Share on other sites More sharing options...
SEW247 Posted January 30, 2011 Share Posted January 30, 2011 Just had a letter from BOS. they said they regretted but having reviewed my account, they were reducing my credit limit to £500 and in two months the account was to be closed. Worrying stuff, so I rang them to enquire. well, it was to protect my credit rating, apparently. and the positive balance they owed me...they are sending a cheque. Farewell. Course, the problem for those followers of MSE who have hopes to use their credit cards in times of stress....well may well find that particular avenue of emergency finance is fast being closed. Well the letter I got home to this week was rather different; an increase in my BA Amex limit to 17,325, second letter like it in 3 months. Admittedly I am a high monthly spender but at 46% interest you can probably imagine that I always pay it off in full each month, so not really sure what their motive is. Quote Link to comment Share on other sites More sharing options...
AndyAndy Posted January 30, 2011 Share Posted January 30, 2011 Sorry, I didnt mention it was an NSPCC credit card...a proportion of the spend went to NSPCC...issued by BOS. BOS and the other banks did deals with the charities to encourage people to borrow from them - you see its not borrowing its helping a charity. It paid the banks to do it at the time as they wanted lots of borrowers and it helped their corporate image. The Arc Angel Gabriel coming down from the heavens waving a hp proposal form and kissing the foreheads of the banks CEO's would not help their image these days so Charity begins at home. Quote Link to comment Share on other sites More sharing options...
AndyAndy Posted January 30, 2011 Share Posted January 30, 2011 Well the letter I got home to this week was rather different; an increase in my BA Amex limit to 17,325, second letter like it in 3 months. Admittedly I am a high monthly spender but at 46% interest you can probably imagine that I always pay it off in full each month, so not really sure what their motive is. Amex isn't a bank credit card lender in the normal sense. They are keen as mustard for you not to pay your balance off hence why they increase the limit. Keep making the payments. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 30, 2011 Share Posted January 30, 2011 Amex isn't a bank credit card lender in the normal sense. They are keen as mustard for you not to pay your balance off hence why they increase the limit. Keep making the payments. I would add that all the credit cards I use are regularly credit increased. Even the OD limits on my current accounts have been increased, with the exception of A+L. Quote Link to comment Share on other sites More sharing options...
rented Posted January 30, 2011 Share Posted January 30, 2011 I was in Nationwide recently, the person I was talking to noted I had money in my accounts with them and offered me a credit card, I declined. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 30, 2011 Share Posted January 30, 2011 I was in Nationwide recently, the person I was talking to noted I had money in my accounts with them and offered me a credit card, I declined. you should have handed 6 pages of forms for them to fill in, before you declined their application, then kept the reason witheld. Quote Link to comment Share on other sites More sharing options...
AndyAndy Posted January 30, 2011 Share Posted January 30, 2011 I was in Nationwide recently, the person I was talking to noted I had money in my accounts with them and offered me a credit card, I declined. I'm the same - Just don't have them. Its a pain sometimes and I don't get the free insurance on purchases but with a young family and a generally disorganised nature I worry about not paying them off monthly. For those people that are so organised they are sensible. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted January 30, 2011 Share Posted January 30, 2011 (edited) I'm the same - Just don't have them. Its a pain sometimes and I don't get the free insurance on purchases but with a young family and a generally disorganised nature I worry about not paying them off monthly. For those people that are so organised they are sensible. they are also sensible for people with no assets and very low income if they can put at least 50k on them Edited January 30, 2011 by Tamara De Lempicka Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 30, 2011 Share Posted January 30, 2011 they are also sensible for people with no assets and very low income if they can put at least 50k on them And if they have enough cards, they can "stripe" them, moving balances every few months and NEVER have to make an actual payment for years. Quote Link to comment Share on other sites More sharing options...
uncle_monty Posted January 30, 2011 Share Posted January 30, 2011 Natwest have just given me a £15k overdraft. Approved in 24 hours. Quote Link to comment Share on other sites More sharing options...
newbonic Posted January 30, 2011 Share Posted January 30, 2011 I noticed a couple of months ago that my overdraft limit had been unilaterally reduced from £900 pm to just £100 - I didn't ask, they just did it and I noticed the change on my monthly statement. It's no biggie as I haven't used it for 10 years or more, and I assumed it was cut because my income is erratic (I'm self employed) or because I never use it. Maybe it was cut because it helps their balance sheet to not have millions in authorised loan facilities allocated, that customers could use, if they went overdrawn? Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted January 30, 2011 Share Posted January 30, 2011 they are also sensible for people with no assets and very low income if they can put at least 50k on them Then withdraw £1000 cash from them and use it to go pay their bankrupcy costs. Quote Link to comment Share on other sites More sharing options...
geezer466 Posted January 30, 2011 Share Posted January 30, 2011 I will look forward to mine being cut then. Banked at shat west for 20 years + and worked up an o/d limit of £3500 that I have never ever used. Never asked for it either it just sort of appeared on my statements sometime in the 90's and then gradually increased. I did drop a bullock once by applying for their advantage account the one where they give you free travel insurance and other useless goodies for a £12 a Month fee. Did it online and pressed the button before I read the full terms. Lucky I was only 10 minutes into my 7 days cooling off before I was on the phone cancelling it. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 30, 2011 Share Posted January 30, 2011 Just had a letter from BOS. they said they regretted but having reviewed my account, they were reducing my credit limit to £500 and in two months the account was to be closed. Worrying stuff, so I rang them to enquire. well, it was to protect my credit rating, apparently. and the positive balance they owed me...they are sending a cheque. Farewell. Course, the problem for those followers of MSE who have hopes to use their credit cards in times of stress....well may well find that particular avenue of emergency finance is fast being closed. As a hippy once said: There's some heavy shit about to come down man. Quote Link to comment Share on other sites More sharing options...
justthisbloke Posted January 30, 2011 Share Posted January 30, 2011 I'm the same - Just don't have them. Its a pain sometimes and I don't get the free insurance on purchases but with a young family and a generally disorganised nature I worry about not paying them off monthly. For those people that are so organised they are sensible. I didn't have one for years but applied a couple of years back to use for internet purchases. I was a little surprised to be declined - given that I'm a long way from skint and have never in my life borrowed a penny from anyone. Which, of course was the problem. Quote Link to comment Share on other sites More sharing options...
Superted187 Posted January 30, 2011 Share Posted January 30, 2011 I'm sure banks go through cycles like this every year just to get the dormant accounts off of their books. A bit like first direct starting to charge people £12 a month if they don't deposit at least £1500 each month. They introduced that measure a few years back Quote Link to comment Share on other sites More sharing options...
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