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UK-Justice
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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hi, our bank kept on advising us to increase our overdraft

Customer Question

hi, our bank kept on advising us to increase our overdraft until it became a six figure one, then they told us it was unacceptable , and reduced the overdraft by 75% , with no negotiation we have been told either accept or find the money, we have been banking with them for 50 years
Submitted: 4 years ago.
Category: Law
Expert:  UK-Justice replied 4 years ago.
Thanks for your question, I will do whatever I can to help you. Please remember to rate my answer SMILEY FACE OR ABOVE.

I am sorry to hear this.

Do you have personal guarantees?
Customer: replied 4 years ago.

yes our houses

Expert:  UK-Justice replied 4 years ago.
And what is it you want to achieve?
Customer: replied 4 years ago.

whether the bank, has acted properly by threatening us like this, my business partner is now suffering severe stress , as he has asked his elderly father to sell his house so we can raise the 75k, at no time in the past did the bank advise us to reduce overdraft, as we have 250k stock, 2 houses worth 380k as guaranteee, and over 50 years of history, our accountants cant see why they are doing this either

Expert:  UK-Justice replied 4 years ago.
The problem is this - overdrafts are repayable upon demand, the bank does not need any reason to call it in.

Want you can do is raise formal corporate complaint about how you have been treated.

The bank will investigate this and report back.

If you are not satisifed with that response you can complain to the ombudsman.

They are free, independent and an examine your complaint.

They can be found at

http://www.financial-ombudsman.org.uk/

If the ombudsman find against you that is the end of the matter.

However the dificulty you face is the fact this is an overdraft and not a formal loan. This means it can be called in at any time for whether reason.

I am sorry if this may not necessarily be the answer you want but it is best to know the true position and what you face.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
UK-Justice and 2 other Law Specialists are ready to help you
Customer: replied 4 years ago.

i just wondered if the bank was in the right by allowing this overdraft for over 10 years , to then reduce by 75% we felt as though the bank was almost forcing us to close which we probably will

Expert:  UK-Justice replied 4 years ago.
Morally right - no,

Is it illegal what they are doing - no as well I am sorry.........




Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Expert:  UK-Justice replied 4 years ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice