Overdraft limit £500, so why have they let him withdraw £1000 cash??

[Spiceskull]

let you go over the limit, to quote: 'Avoid potential embarrassment'

This is a defence that a lot of banks have used, and in all fairness, when applied to 'shop purchases' it does have some mileage.

 

However, when you are already over your limit, and trying to take money out of the ATM, what embarassment would be caused by the machine saying "sorry, no funds?"

 

This occurred to me yesterday, and it demonstrated finally (as if I needed the final proof) the any limits set on my account are arbitrary, and therefore in advising me that my limit is £500 the bank is surely guilty of giving me misleading information.

[Bailiffchaser]

similar thing here. the lloyds tsb let my mate write out £4000 worth of cheques on a £1050 overdraft and qas they were gauranteed. Can they not cancel a gaurantee card ? think of the possibilities order as many cheque books and write off as many cheques as long as they are gauranteed lloyds cant do screw about them.

[claire78]

I used to work for HSBC (about 8 years ago).

 

Not long before I left they started the 'unadvised limit' idea. Basically what you were told is correct. They have a limit they will let you go up to based on your 'behaviour score' with them. This is a mixture of how many products you have wih them, how often you go over your limit, how many transactions you make and how much money is going into the account.

 

If they have leant you all they are willing to, your limit will be your OD limit plus £8, which is why sometimes you can go slightly over your limit

[Bailiffchaser]

Hsbc will let you do this even if you have a savings account with zilch in it. you can still draw upto £50 from it as long as you have a cashcard etc.

[ANNALH]

This topic was closed on 2019-03-08.

If you have a problem which is similar to the issues raised in this topic, then please start a new thread and you will get help and support there.

If you would like to post up some information which is relevant to this particular topic then please flag the issue up to the site team and the thread will be reopened.

- Consumer Action Group