Overdraft reviewed from 10K to Zero

C

carolspinney

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Just wondering if anyone has experience of overdraft being reduced to nil following a so called review, double interest (surcharge) then applied, explanation is that the Banks hands are tied by the "Credit Committee" ?

I have a very good income and credit history , hit a rough patch 2 years ago, pressure being applied since.
 
Hi Carol

You should be more specific and give a chronology of events.

In general, overdrafts are unsecured lending. If someone doesn't adhere to the terms, the risk is too high for the bank. But you need to give more details.

Brendan
 
It's unusual (but not unheard of)........

The small print will outline that an overdraft is 'repayable on demand' so technically bank are within their rights to withdraw.

However, it rarely happens, unless account is been operated in an unsatisfactory manner, e.g. breaching limit regularly, or bank having to return items unpaid on a regular basis, or associated loan facilities being in arrears.

If none of the above apply, I'd be confused as to why your bank has withdrawn.

Hope that helps.


BM
 
Thanks for the replies.

To give a bit more detail, operated Current and Deposit Account , during the 12 months prior to "review", combined position never exceeded, last 2 months of period went over limit in Current account by 1k.

At this time had Mortgage (900 pm) and Loan (800 pm) with same Bank, all up to date. Previously had company accounts that had regular CR balance from 20-70k.

Overdraft arose from a period of illness (Self Employed but no income for 3 months).

At the time (Jul 05) was just starting a new contract (140k per annum), doing that since, Bank not interested!

Since then current account remained in o/d and Standing Order from there to loan not paid.

Have been in a strop with them ever since, Bank Manager declines to communicate, all out of his hands he says. My communication has been in writing, no response!!

Loads of automated letters sent to previous address despite advising of address change.

Have spoken to IFSRA and they say I have several grounds for complaint.

Not quite sure what to do, my perspective might be somewhat rose tinted but it seems that they put pressure on, in order that penalty interest could be applied (this it seems works out at c. 22% apr, (10.85% pa + 0.75% pm), nice work if you can get it.

What do you do with these people??
 
write to manager per registered post asking why letters have not been replied and also ask to whom in head office you shoudl address query if you are not satisfied with the response from branch.

If you are not satisfied with reply, you can write to this named individual asking if he feels you should contact joe duffy or if the matter can be sorted out to mutual satisfaction locally.

you have nothing really to lose, since your facilities are cancelled!!!!
 
Ravima, yes Joe Duffy may well be an option but as you suggest I'll go through the semi-formal route for now.

While Joe Duffy can say things on air and some people hear them and even think about them, very few people apparently do anything.

This site offers a great communications portal for those who do things, would be nice if we all got ourselves organised just like the Banking Cartel has done for as long as we know.

I'm living in the UK at the mo, here's a site that might interest some.

http://www.consumeractiongroup.co.uk/

No reason why the Consumer can't take a proactive and regressive look at how the Irish Financial Institutions really work.

Inerita is not an immovable feast as the Banks like it!
 
Hi,

something still doesn't measure in my mind, however, that's not the important issue now, the real crux is how to resolve from here.........

in a nutshell, it would appear, bank are not happy with operation of account (note I said appear).....

you're now in a bind, as they removed overdraft....

whether or not account is managed locally or centrally, you deserve the right to be heard by manager in your branch (he/she may not have decision making authority if account is centrally managed, but this in no way should stop him/her meeting with you)....

from a bank perspective they will want the issue resolved (what I'm not clear on, it whether they want to terminate the banking relationship or are they willing to say place the current outstanding amount on say term loan to be paid off over a fixed period of time)....

this is what you/they need to establish (and you'll only be able to do so via dialogue)...

if I were you, I'd write to local manager, suggesting a meeting say in week's time, give proposed date and time of meeting, and invite him/her to revert to you confirming his/her availability (give your contact no. in your letter)... I'd copy that letter to the address on those automated letters you've been getting also....

in advance of the meeting, clarify for yourself, what income, outgoings, assets and liabilities you have and what you can afford to pay going forward (doesn't appear to be a major issue for you if you are grossing E140k per annum - this is why I'm confused, sorry.....)

Hope that helps.........

BM
 
Thanks Bank Manager for your reply.

The sitting down bit was done in July 05, that's when the overdraft was reset to 0. No reason was given apart from the "Credit Committee" refusing to maintain the Overdraft.

There was also no offer of repaying the overdraft by instalment. I wrote to the Manager in March asking him to suggest a route forward, no response. Finally this month they closed all accounts which I only found out about by accident as post was still being sent to old address.

The credit balance remaining was supposed to have been posted to me by Draft over 3 weeks ago, hasn't arrived though.

I've passed the whole thing to the Bank's Customer Services Manager, let's see what they come up with.

Like you I thought it would have been in everyone's interest to resolve this a year ago, perhaps they just wanted rid of someone who asks questions?
 
Carol

I don't follow your story at all. If you are not able to explain it in a clear, systematic manner to us, I can't understand how the FR managed to conclude that you had grounds for complaint.

As I have said, this is too vague:
I have a very good income and credit history , hit a rough patch 2 years ago, pressure being applied since.
Click to expand...

When did you take out your mortgage? (not "a few years ago" give the month and year)
When did you take out a loan?
Did you get an authorised overdraft?
Did you exceed the overdraft?
When you "hit the rough patch", did you tell the bank?

You know that you are sorted with your €140k job, but banks don't like people exceeding their overdraft and messing them about. In most cases I know, the banks are fairly reasonable. They appear unreasonable, when they get messed around.

It's not possible to assess who is to blame here - you or the banks.

Brendan
 
carolspinney said:
Thanks Bank Manager for your reply.

The sitting down bit was done in July 05, that's when the overdraft was reset to 0. No reason was given apart from the "Credit Committee" refusing to maintain the Overdraft.

There was also no offer of repaying the overdraft by instalment. I wrote to the Manager in March asking him to suggest a route forward, no response. Finally this month they closed all accounts which I only found out about by accident as post was still being sent to old address.

The credit balance remaining was supposed to have been posted to me by Draft over 3 weeks ago, hasn't arrived though.

I've passed the whole thing to the Bank's Customer Services Manager, let's see what they come up with.

Like you I thought it would have been in everyone's interest to resolve this a year ago, perhaps they just wanted rid of someone who asks questions?
Click to expand...

I think there's a fair piece of this story missing - you now tell us they've closed all your accounts (what about the overdraft, mortgage and loan you referred to in your earlier post?). Things like this aren't done lightly (very infrequently in fact) - still think you need to talk it through with your bank - looks very clear to me now that they want to terminate the banking relationship.

BM
 
carolspinney said:
Just wondering if anyone has experience of overdraft being reduced to nil following a so called review, double interest (surcharge) then applied, explanation is that the Banks hands are tied by the "Credit Committee" ?

I have a very good income and credit history , hit a rough patch 2 years ago, pressure being applied since.
Click to expand...
....which of course means that any money overdrawn immediately becomes "unapproved" borrowing, thus enabling the bank to probably charge you about 3 times the interest they were originally charging you.

I would ask the bank to suspend the interest on the overdraft and contact the financial ombudsman if they refuse since you never requested that the overdraft be removed.

On the other hand, if you are not in the red, open a new account with a different bank, write a few chques and withdraw every penny you have with this bank, and close all your accounts.

I had a similar experience with my own bank, though in my case it was only a 635 euro overdraft. Still was hit by huge surcharges though, it cost me about 25 euros a month for quite some time. By which time of course they'd closed the acounnt and sent to a debt collector. I paid it off, but eventually withdrew all my business from that bank and never intend doing business with them again. Ever.
 
Re: Ulster Bank took €3,000 from customer account : Sunday Independent 19 Nov 06

Hi Brendan,

With respect, I think there are some pretty obvious reasons why your questions were not answered.

Your identity on this site, like everyone else, including myself, is not subject to verification.

Therefore you don't know who you're talking to , hence the vagueness.
 
With respect

Your story makes very little sense.

I don't know if it's Ulster Bank you are dealing with but they have tightened up their criteria. They has said that they closed the account of customers who had other loans with them which were persistently in arrears. It sounds as if you fall into this category. If you had an account which was persistently in arrears, I am not surprised that they asked you to take your business elsewhere.

Brendan
 
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