Overdraft question

[Belaflat]

I have an agreed overdraft of £2500 which is used to the full every month.

It is up for review on the 26th march which coincidentally is the date I have my salary paid in to the account together with my annual bonus.

 

In the last couple of months, I have exceeded my overdraft limit by just over £2.00 (two) which resulted in charges which in turn took me back to my limit which resulted in a returned DD, more charges and again they took me over my limit by £8.00. result yet more charges.

 

Checking my online account today, I noticed that I had an overdraft facility of £2500 but a guaranteed facility of only £1250.

 

My worry is now that on the review date, they will either withdraw or cut my limit to the lower amount which is going to cripple me completely in the first instance and cause me major headaches in the second case scenario.

 

My salary and bonus will amount to around £2200 and a reduced limit would leave me able to pay my major bills only but leave nothing for food, the withdrawal of the full amount would plunge me into financial disaster as I have no savings whatsoever to fall back on to pay any bills or live on.

 

What is the likelihood of them taking any of the mentioned actions and what are my options should they do so.

 

I have thought about a parachute account but dont want to ditch the account if not necessary as i have enough financial problems elsewhere without adding these to my list of creditors.

[ab123uk]

If the guaranteed overdraft limit is only half of the actual amount, this is the amount that 'the system' suggests they lend you, by increasing this, they are exposing themselves to a higher risk of loss than they should be doing... so it is likely that whoever carries out the review will say "unfortunately....", the amount you go over by is irrelevant really, its the fact that they've let you over what they should anyway.... I really do think they'll say no, had this bene one of mine when i was a HBOS emp, i would've declined. Sorry.

[Penfold92]

Hi,

 

That is a bit of a pickle. Now I work in Financial Services and I have seen recently with clients of mine and even friends that the banks are reducing credit limits even for those without credit problems...

 

This merely confirms, IMHO anyway, what I have been saying for some time which is that the banks lent over zealously over the last decade and the "credit crunch" has been their catalyst in their panic!

 

Note that the debtor has become more knowledgeable too...as well as the changes inthe CCA 2006 with the "unfair relationships" these all combined have made the Banks profits reduce...

 

So in response to your question I would say try to protect your money until you know what they have done...If they reduce it then you can try to speak to them and see what they do but you have all your money anyway. If they don't you can put your money back in and forget about it till the next review...

 

Hope that helps a bit...

 

Penfold

[Belaflat]

ab123uk, the £2500 limit was the agreed and approved limit for some time.

Its just that coming up to review, they seem to have re-adjusted the guaranteed amount.

I would also add that I have a Platinum card which started out at 14.9% but was then increased to 19.9%.

I responded by cancelling PPI, they responded by increasing again to 24.9%.

 

I am trying to sort things out but it seems like the Halifax have got wind of a potential problem and are doing their level best to get their pound of flesh, "just in case" but its this sort of action which is going to push me over the edge.