Santander randomly reduced my overdraft facility...
Discussion
Bit of a whine so I'll apologise in advance.
I've had a 3k overdraft facility with Alliance & Leicester for about 15 years. I've not used it for more than 10 of those and I've never had a "review" letter. Then out of the blue my overdraft facility suddenly dropped to £700. When I phoned up they generally fobbed me off with "company policy" and hinted that "underwriting have reviewed your facility".
My financial situation hasn't changed at all in the last few years. I've got a few k in my current account and a little bit more in my deposit account. They would not reverse the decision unless I "went into branch to appeal the decision" WTF is going on. I know Santander took over the retail ops a year ago but this is quite a shift in policy.
Time to change banks I think, and probably move our business bank as well.
I felt oddly violated and "cheap" as they downgraded me and clearly could give a b
k.
It has been suggested elsewhere that unused overdrafts are being trimmed by the banks but this just seems ridiculous.
I've had a 3k overdraft facility with Alliance & Leicester for about 15 years. I've not used it for more than 10 of those and I've never had a "review" letter. Then out of the blue my overdraft facility suddenly dropped to £700. When I phoned up they generally fobbed me off with "company policy" and hinted that "underwriting have reviewed your facility".
My financial situation hasn't changed at all in the last few years. I've got a few k in my current account and a little bit more in my deposit account. They would not reverse the decision unless I "went into branch to appeal the decision" WTF is going on. I know Santander took over the retail ops a year ago but this is quite a shift in policy.
Time to change banks I think, and probably move our business bank as well.
I felt oddly violated and "cheap" as they downgraded me and clearly could give a b
k.It has been suggested elsewhere that unused overdrafts are being trimmed by the banks but this just seems ridiculous.
A year ago my bank didnt want to know, now they and the credit card are tripping over themselves to lend to me, nothing much has changed so go figure.
This alliance/santander thing does wind me up, we have a mortgage with a&l which is 1% higher than that of santander, but if we want the cheaper rate we have to remortgage with all the fees.
Santander seemed keen to sweep away the abbey national brand but dont seem so keen to do the same for a&l customers
This alliance/santander thing does wind me up, we have a mortgage with a&l which is 1% higher than that of santander, but if we want the cheaper rate we have to remortgage with all the fees.
Santander seemed keen to sweep away the abbey national brand but dont seem so keen to do the same for a&l customers
Santander - bloody useless. My wife took our marriage certificate into a branch to get her details updated with her married name.
The card came back Miss followed by her first name and our surname.
When she went back they eventually changed it again but didn't tell us the card was cancelled.
We only found out when she went to a cash machine - 5 minutes before the branch closed - while we were on holiday.
Useless.
The card came back Miss followed by her first name and our surname.
When she went back they eventually changed it again but didn't tell us the card was cancelled.
We only found out when she went to a cash machine - 5 minutes before the branch closed - while we were on holiday.
Useless.
Done a bit of reading around and it does seem that Satander are suffering some kind of admin meltdown. Can't really be arsed complaining so its time to move. I see Coop Bank gets a good write up and Smile seems to be good for online banking. However, as an Apple we I really quite fancy iPhone/iPad banking and it seems only Natwest have a decent offering. Poo.
e I really quite fancy iPhone/iPad banking and it seems only Natwest have a decent offering. Poo.Probably not anything related to your circumstances, it's more likely to do with them meeting capital ratio's. My understanding is that O/D facilities whether being utilised or not are listed as capital tied up. You could spend the 3K and they have find it, imagine if they can reduce enough O/D's down particularly those not used, they won't need to raise as money on Basel III requirements.
nomisesor said:
Agree, no point in them having unused OD facilities which they have to be able to fund if the customer draws on them. Probably nothing to do with your perceived creditworthiness. Join us at 1st Direct - top bank.
Hehehehehe. Applied already.- Love the "join us" sentiment; that's the way it should be
nomisesor said:
Indeed - and I'm a customer with no other connection to 1st D.
I would also state that 1st Direct are one hell of an outfit! Great customer service and superb phone banking when required. Nice easy online presence as well.Edited by nomisesor on Friday 25th November 18:30
I opened a savings account with this useless bunch. Transferred money in, it took ages to appear in my account. When I got fed up and closed the account, the money 'disappeared' for over a week. No amount of phone calls and e-mails could resolve anything. I wouldn't touch them with a poisoned st stick!
t stick!Agree with what others have said here in that if you have an overdraft limit the bank has to set aside capital to cover the exposure even if you don't use it for the whole year. This is due to the implication that an account holder could max out there OD at any time.
Therefore I can understand why the banks, who are particularly short on capital at the moment, would want to review unused overdrafts and perhaps reduce them based on historic usage.
Having said this it might have been nice to have communicated this or to even offer the customer the option of keeping their "safety net" for some kind of fee (which would go towards covering some of the set aside capital even if necer used), at least then the customer can weight up the pros and cons and make their own decision rather than having it forced upon them without any communication.
From what I know of Santander they are still yet to properly integrate the systems of the various acquisitions that they have made and as such the OP's experience (being originally an A&L customer) may occur more as Santander integrate more of their acquisitions.
Therefore I can understand why the banks, who are particularly short on capital at the moment, would want to review unused overdrafts and perhaps reduce them based on historic usage.
Having said this it might have been nice to have communicated this or to even offer the customer the option of keeping their "safety net" for some kind of fee (which would go towards covering some of the set aside capital even if necer used), at least then the customer can weight up the pros and cons and make their own decision rather than having it forced upon them without any communication.
From what I know of Santander they are still yet to properly integrate the systems of the various acquisitions that they have made and as such the OP's experience (being originally an A&L customer) may occur more as Santander integrate more of their acquisitions.
Ahem.... First Direct!
They have a switch team that is the best I have come across.
I have personal experience of several banks and have anecdotal evidence of many - FD every time!
Unless of course you qualify for a proper 'Private Bank'? If not, even Citigold are not very good - and do not trust their switch team!!!!! Trust me
Oh well - I always find myself going back to AIB - dont even try to open an account with them - I 'used' to be able to call accounts in my branch and could recognise voices - and they MINE!!!! At least they still have personal emails and you do speak to one of a handful of people and get to know voices.
Don't switch unless you really hate the current one and think long and hard before going to another run of the mill high street outfit - regardless of the free £5.50 Overdraft for 11 mins.
Oh well - times change
They have a switch team that is the best I have come across.
I have personal experience of several banks and have anecdotal evidence of many - FD every time!
Unless of course you qualify for a proper 'Private Bank'? If not, even Citigold are not very good - and do not trust their switch team!!!!! Trust me
Oh well - I always find myself going back to AIB - dont even try to open an account with them - I 'used' to be able to call accounts in my branch and could recognise voices - and they MINE!!!! At least they still have personal emails and you do speak to one of a handful of people and get to know voices.
Don't switch unless you really hate the current one and think long and hard before going to another run of the mill high street outfit - regardless of the free £5.50 Overdraft for 11 mins.
Oh well - times change
I had accounts with Bradford and Bingley, Alliance and Leicester and someone else that all ended up with Santander. A more unhelpful, disorganised bunch of morons you couldn't find anywhere. Staff in branches would directly contradict staff at the call centre to the point I handed my mobile over to branch staff! I had 6 accounts that ended up in their hands and closed them down one by one each time they annoyed me.
They wouldn't let me close one account as I didn't have a card for the account (because I never wanted one). They made me bring in a passport to prove my identity so they could then take 2 weeks to order me a card. I then had to go back with my passport, hand it to them so they could then hand me back my new card. I then took it off her and then handed it straight back to her to close the account. the whole process was farcical.
Moral of the story - Santander customer service is the worst of any high street bank I have ever unfortunately had to witness. As others above have said vote with your feet and First Direct is one of the best out there.
They wouldn't let me close one account as I didn't have a card for the account (because I never wanted one). They made me bring in a passport to prove my identity so they could then take 2 weeks to order me a card. I then had to go back with my passport, hand it to them so they could then hand me back my new card. I then took it off her and then handed it straight back to her to close the account. the whole process was farcical.
Moral of the story - Santander customer service is the worst of any high street bank I have ever unfortunately had to witness. As others above have said vote with your feet and First Direct is one of the best out there.
MrOrange said:
Bit of a whine so I'll apologise in advance.
I've had a 3k overdraft facility with Alliance & Leicester for about 15 years. I've not used it for more than 10 of those and I've never had a "review" letter. Then out of the blue my overdraft facility suddenly dropped to £700. When I phoned up they generally fobbed me off with "company policy" and hinted that "underwriting have reviewed your facility".
My financial situation hasn't changed at all in the last few years. I've got a few k in my current account and a little bit more in my deposit account. They would not reverse the decision unless I "went into branch to appeal the decision" WTF is going on. I know Santander took over the retail ops a year ago but this is quite a shift in policy.
Time to change banks I think, and probably move our business bank as well.
I felt oddly violated and "cheap" as they downgraded me and clearly could give a bk.
It has been suggested elsewhere that unused overdrafts are being trimmed by the banks but this just seems ridiculous.
Nothing wrong here.I've had a 3k overdraft facility with Alliance & Leicester for about 15 years. I've not used it for more than 10 of those and I've never had a "review" letter. Then out of the blue my overdraft facility suddenly dropped to £700. When I phoned up they generally fobbed me off with "company policy" and hinted that "underwriting have reviewed your facility".
My financial situation hasn't changed at all in the last few years. I've got a few k in my current account and a little bit more in my deposit account. They would not reverse the decision unless I "went into branch to appeal the decision" WTF is going on. I know Santander took over the retail ops a year ago but this is quite a shift in policy.
Time to change banks I think, and probably move our business bank as well.
I felt oddly violated and "cheap" as they downgraded me and clearly could give a b
k.It has been suggested elsewhere that unused overdrafts are being trimmed by the banks but this just seems ridiculous.
Remember all the moaning and complaining about "reckless lending by bankers"?
As ye sow, so shall ye reap.
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