We've noticed that you might need to use your overdraft . . .

[Gersemi]

. . . so we're going to withdraw it.

Yes, after 40 years of banking with Barclays Bank and never being overdrawn in all that time they have now advised me that following a review of my account they have decided to withdraw my overdraft of £500. They say that this limit "might" be higher than if I applied for an overdraft today.

Basically they have noticed that I no longer have a regular source of income. This is because I have retired and haven't yet started drawing my pension. I am living off my savings and investments and so I am making ad hoc transfers to the account which cover my expenses. The account is being used as it always has been, with various standing orders and purchases throughout the month. The major standing order is to another account (a joint account with another bank) from which household expenses are paid, so they can't see these payments.

To say I am annoyed is the least of it. I am incensed that they judge me compared to a new customer and seemingly have paid no attention to my banking record. They kindly advise me that this is to ensure that I don't borrow more than is manageable and that they will bounce any payment that is going to make my account overdrawn. They aren't prepared to risk £500 on me!

I will be contacting them to suggest that they review their decision again, but I am tempted to simply move my current account to another bank and claim the switching fee that seems to be available from several of them. I could arrange a regular payment to the account if necessary.

Grrrr.

[kempiejon]

To say I am annoyed is the least of it. I am incensed that they judge me compared to a new customer and seemingly have paid no attention to my banking record. They kindly advise me that this is to ensure that I don't borrow more than is manageable and that they will bounce any payment that is going to make my account overdrawn. They aren't prepared to risk £500 on me!

I will be contacting them to suggest that they review their decision again, but I am tempted to simply move my current account to another bank and claim the switching fee that seems to be available from several of them. I could arrange a regular payment to the account if necessary.

You will not be the first to contact them disappointed and insulted. Spent 20 mins on hold - apparently they cannot do this another way - spoke to an operator who said there had been loads of similar calls. Closing the account is an appealing option.

[Lootman]

I guess banks like to see regular amounts going into an account on a monthly basis, and that is not happening. I am in a similar position to you and just move chunks of cash into my current account as I need to. There is no pattern to that - it is ad hoc.

My bank (Natwest) lowered my credit card limit and stopped the automatic sweep between my current and savings accounts, but has not done anything with my overdraft facility, which I have never utilised anyway.

My other bank, HSBC, wrote to me a while ago to note that I had not made a transaction in 6 months, along with veiled threats about such inactivity. So it is at least possible that all banks do something like this, and so swapping between them is only a short-term fix

[Gersemi]

You will not be the first to contact them disappointed and insulted. Spent 20 mins on hold - apparently they cannot do this another way - spoke to an operator who said there had been loads of similar calls. Closing the account is an appealing option.

So what was the result?

[Redmires]

Be careful when closing your current account. Other banks may not want you as a customer. You become invisible once retired and not drawing an income, no matter how much you have in savings. A similar thing happened to me when I cut up my John Lewis credit card after their move to Newday. I already have a card with another bank but wanted an alternative/backup card as well. I applied for a new credit card with a couple of other banks and got rejected, despite a spotless credit history. In the end, I managed to get a 2nd card on my wifes credit card.

[Howard]

I read somewhere that the banks are encouraged to do this by regulators to reduce the overall potential for lending. Taken nationwide this reduces potential lending by billions.

So it isn't necessarily a reflection of you as a credit risk but a tidying up exercise.

My overdraft limit was also reduced recently but I couldn't blame the bank as I haven't had an overdraft for over fifty years.

What does irritate me are patronising messages when I log in advising me on how to save and other messages offering me a loan when the current account plus linked savings account are well into five figures.

regards

Howard

[Gersemi]

Be careful when closing your current account. Other banks may not want you as a customer. You become invisible once retired and not drawing an income, no matter how much you have in savings. A similar thing happened to me when I cut up my John Lewis credit card after their move to Newday. I already have a card with another bank but wanted an alternative/backup card as well. I applied for a new credit card with a couple of other banks and got rejected, despite a spotless credit history. In the end, I managed to get a 2nd card on my wifes credit card.

Well I wouldn't close the account without having set up a new one. I did wonder about my chances of getting a new credit card. I had to do this when JaJa closed their operation (I'd migrated to them via several other cards over the years). However I was able to get one from Virgin Money with no problem, which I was pleased about because they offer fee free spending abroad.

[CliffEdge]

Be careful when closing your current account. Other banks may not want you as a customer. You become invisible once retired and not drawing an income, no matter how much you have in savings. A similar thing happened to me when I cut up my John Lewis credit card after their move to Newday. I already have a card with another bank but wanted an alternative/backup card as well. I applied for a new credit card with a couple of other banks and got rejected, despite a spotless credit history. In the end, I managed to get a 2nd card on my wifes credit card.

I applied for a Halifax credit card and was rejected for no reason.

[kempiejon]

You will not be the first to contact them disappointed and insulted. Spent 20 mins on hold - apparently they cannot do this another way - spoke to an operator who said there had been loads of similar calls. Closing the account is an appealing option.

So what was the result?

I've not closed the account, I do not have an overdraft with them as I couldn't be fagged to apply for a feature I don't need, they have promised it will have no impact on my credit score. They have lost my respect.
They have not ever been my main current account.

[DrFfybes]

. . . so we're going to withdraw it.

Yes, after 40 years of banking with Barclays Bank and never being overdrawn in all that time they have now advised me that following a review of my account they have decided to withdraw my overdraft of £500. They say that this limit "might" be higher than if I applied for an overdraft today.

I can see why this would be an irritation and perhaps feel like a personal sleight, but basically you are throwing your toys out of the pram because they have removed a facility they have provided for you for 40 years and you haven't used.

They probably have this on every account, and as it seems a not uncommon issue then there's probably some odd liquidity requirement where they have to have a continency if everyone suddelny used their max overdraft limit at the same time and they're tidying their books up.

Paul

[Gersemi]

. . . so we're going to withdraw it.

Yes, after 40 years of banking with Barclays Bank and never being overdrawn in all that time they have now advised me that following a review of my account they have decided to withdraw my overdraft of £500. They say that this limit "might" be higher than if I applied for an overdraft today.

I can see why this would be an irritation and perhaps feel like a personal sleight, but basically you are throwing your toys out of the pram because they have removed a facility they have provided for you for 40 years and you haven't used.

They probably have this on every account, and as it seems a not uncommon issue then there's probably some odd liquidity requirement where they have to have a continency if everyone suddelny used their max overdraft limit at the same time and they're tidying their books up.

Paul

Well I have thought about moving to another account, they stopped paying interest on it years ago when interest rates went very low, but strangely they haven't reinstated it now interest rates have risen again. There are current accounts out there that pay interest - of course they might not accept me.

I have never needed the overdraft, and certainly don't intend using it in the future. But it was nice to have as a backstop and right now, when I have no regular income dropping into the account, is just when I might need it if my timing messes up for some reason. I could be incapacitated or out of contact and unable to make a transfer at the right time.

[scrumpyjack]

I have for many years kept current accounts with both NatWest and Barclays. It is worth having more than one bank account in case of problems.

I have now just opened one with Chase as well, partly as they bribe one with 1% cash back on debit card payments for the first year, plus they pay interest.

Don't be reliant on one bank!

(ps I wouldn't touch the likes of Revolut or Monzo (the latter being so woke and the former IMO a bit dodgy- a view seemingly shared by the banking authorities who won't give them a licence))

[Lootman]

I have for many years kept current accounts with both NatWest and Barclays. It is worth having more than one bank account in case of problems.

I have now just opened one with Chase as well, partly as they bribe one with 1% cash back on debit card payments for the first year, plus they pay interest.

Don't be reliant on one bank!

(ps I wouldn't touch the likes of Revolut or Monzo (the latter being so woke and the former IMO a bit dodgy- a view seemingly shared by the banking authorities who won't give them a licence))

Does Chase have a branch network, or at least give you access to one?

I recall having a Fleming bank account back in the 1990s, and Fleming was merged into Chase at some point. As part of JPMorgan it is hard to imagine a bank with a better pedigree.

[Urbandreamer]

(ps I wouldn't touch the likes of Revolut or Monzo (the latter being so woke and the former IMO a bit dodgy- a view seemingly shared by the banking authorities who won't give them a licence))

Apparently Revolut does have a banking license, or rather 70 banking licenses.
Just not a UK banking license.
https://www.pymnts.com/bank-regulation/ ... e-process/

Monzo however do seem to have a UK banking license, just not a US one.
https://en.wikipedia.org/wiki/Monzo

Ps, I don't have an account with either, but feel that there may be more than one side to these stories.

[U962]

They probably have this on every account, and as it seems a not uncommon issue then there's probably some odd liquidity requirement where they have to have a continency if everyone suddelny used their max overdraft limit at the same time and they're tidying their books up.

Paul

Which is indeed the correct answer.
By removing overdrafts from those that never use them anyway they are reducing the amount of money that they need available as instant availability liquidity from a regulatory point of view - but which in practice is never called: so it can be used instead for investment purposes. We as individual's would do exactly the same with our own money.

[Bminusrob]

I am sure First Direct wrote to me quite some time ago to say they were removing my overdraft facility, as I never use it, but having checked, the facility is still there, and if they wanted to remove it, I wouldn't have a problem.

However, just withdarwing a facility from a customer of 40+ years standing is just plain rude. This, surely, is a case where the banks should be using artificial intelligence to handle the issue, because they certainly aren't using any real intelligence.

[stevensfo]

I have for many years kept current accounts with both NatWest and Barclays. It is worth having more than one bank account in case of problems.

I have now just opened one with Chase as well, partly as they bribe one with 1% cash back on debit card payments for the first year, plus they pay interest.

Don't be reliant on one bank!

(ps I wouldn't touch the likes of Revolut or Monzo (the latter being so woke and the former IMO a bit dodgy- a view seemingly shared by the banking authorities who won't give them a licence))

Funny. I have exactly the opposite experience.

I would not open an account with Barclays even if the CEO licked my boots and offered to feed our dog for a year. He would no doubt claim the wear and tear on his tongue as expenses and embezzle half of our dog's biscuits!

I don't understand your comments about Monzo being 'woke'. They're a pretty good online bank with an easy app and friendly customer service.

I hate Revolut's habit of freezing accounts until they receive a certain ID document or similar, but I understand how paranoid they are about being seen as 'squeaky clean' and the stupid attacks they used to receive from the press, no doubt encouraged by the big banks. Their app is amazing. Cheap exchange rates and able to hold and spend different currencies on the same card, good security features, ability to switch contactless on/off etc. No wonder the big banks are annoyed! Giving clients such powers is just so...courageous, as Sir Humphrey would say.

My favourite is Smile, part of Co-Op. Never a single problem after nearly 30 years. No regular salary going in, but the same overdraft as ever.

I get a shiver down my spine, just remembering when I banked with Barclays.

Steve

[U962]

I hope you realise that Revolut is not covered under the UK's FSCS scheme.
Also that the FCA has been investigating them.
https://www.fstech.co.uk/fst/FCA_Invest ... counts.php
and this about the level of complaints referred to the FOS
https://www.ft.com/content/da82bae4-584 ... a429fa9528

I'm not surprised the other banks don't really like them!

[Urbandreamer]

I hope you realise that Revolut is not covered under the UK's FSCS scheme.
Also that the FCA has been investigating them.
https://www.fstech.co.uk/fst/FCA_Invest ... counts.php
and this about the level of complaints referred to the FOS
https://www.ft.com/content/da82bae4-584 ... a429fa9528

I'm not surprised the other banks don't really like them!

My phone came up with the following article today.

https://www.telegraph.co.uk/money/banki ... -starling/

Why it might be time to ditch your bank – and switch to Monzo, Revolut or Starling

I don't subscribe, but it worked once on my phone. Possibly someone can identify a cached version.
Quite interesting. Also interesting to note the number of complaints just about ALL "banks" were getting.

Oh and yes, the issues with Revolut not actually having a UK banking license were highlighted in the article, despite suggesting that they might be something that some might benefit from using.

FWIW I don't have an account with them, as I messed up the application process. I applied to use as a subsidiary account.

[scrumpyjack]

I have for many years kept current accounts with both NatWest and Barclays. It is worth having more than one bank account in case of problems.

I have now just opened one with Chase as well, partly as they bribe one with 1% cash back on debit card payments for the first year, plus they pay interest.

Don't be reliant on one bank!

(ps I wouldn't touch the likes of Revolut or Monzo (the latter being so woke and the former IMO a bit dodgy- a view seemingly shared by the banking authorities who won't give them a licence))

Funny. I have exactly the opposite experience.

I would not open an account with Barclays even if the CEO licked my boots and offered to feed our dog for a year. He would no doubt claim the wear and tear on his tongue as expenses and embezzle half of our dog's biscuits!

I don't understand your comments about Monzo being 'woke'. They're a pretty good online bank with an easy app and friendly customer service.

I hate Revolut's habit of freezing accounts until they receive a certain ID document or similar, but I understand how paranoid they are about being seen as 'squeaky clean' and the stupid attacks they used to receive from the press, no doubt encouraged by the big banks. Their app is amazing. Cheap exchange rates and able to hold and spend different currencies on the same card, good security features, ability to switch contactless on/off etc. No wonder the big banks are annoyed! Giving clients such powers is just so...courageous, as Sir Humphrey would say.

My favourite is Smile, part of Co-Op. Never a single problem after nearly 30 years. No regular salary going in, but the same overdraft as ever.

I get a shiver down my spine, just remembering when I banked with Barclays.

Steve

I've never had any problems with Barclays (except for when I used Barclays Stockbrokers years ago, but soon dumped them).

As for Monzo, there was a big hoo haa a while ago about them slagging off JK Rowling, refusing Jeremy Hunt an account etc etc
https://www.telegraph.co.uk/news/2023/0 ... ries-evil/

But the real point is that if you have accounts with several different bank, any issues with one are much less problematic.