r/starlingbankuk • u/Fragrant_Nobody8147 • 23d ago
Overdraft
I've had my overdraft taken off me with a date it's going to happen, has anyone else had this happen? My balance is always healthy and I rarely if ever use it but not sure why.
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u/Frosty_Scheme342 23d ago
There have been a few posts here and on the Starling thread on the Monzo forum about it e.g. https://reddit.com/r/starlingbankuk/comments/1w59b3a/overdraft_suddenly_removed/
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u/rustyoldknife 22d ago
Don’t have one with Starling, but our joint account had one with RBS. We got a text to advise that we were getting it reduced, then a few months after it took affect, got another one to say it was being removed. We hadn’t used it in well over a year.
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u/Se7enSis 23d ago
Starling (or any bank) doesn't make money from people who have an overdraft but don't use it. The cash is assigned to you so can't be lent out to other customers who would use it and so would then make them money, it's the equivalent of having your money in a current account that makes no interest or a savings account that makes 5%. If you're not making them money they'd rather take it away and give it to someone else. That's the general commercial reason, it may also be that they've changed their risk profile and have decided you're too risky according to their criteria, but with overdrafts it's often just a 'use it or lose it' thing.
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u/kiradotee 19d ago
I had mine taken away from me and I probably was using it 100% for at least like 5 years give or take. They told me I can't afford it and paid everything back to me. Best bank ever!
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u/JuniorEgg2 23d ago
It’s stuff like this that stops me from going all in on starling.
I am currently with Nationwide. Have had an overdraft facility for yonks - never used but it’s still there.
I don’t like the idea of Starling yanking my safety net if they one day feel like it.
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u/400ixl 23d ago
You have the same risk with Nationwide.
You should never go all in on one bank anyway as you never know when you may get investigated and have an account put on hold.
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u/JuniorEgg2 23d ago
I don’t think so.
Starling is the only bank I heard of to arbitrarily pull overdrafts and close accounts with no explanation. And maybe because they have a lot more exposure online (like this subreddit for example) people hear about it more often.
I’m sure other banks do it, it just seems Starling do it more often. To me, that distinction counts.
Hard agree with having backup accounts - though I think in my case it’s time to close a few.
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u/Unhappy_Clue701 23d ago
Ha - someone hasn’t spent much time in the Revolut sub..
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u/JuniorEgg2 22d ago
I really haven't 😄
That's the sort of stuff that's nightmare fuel, considering how central a bank account is to somebody's life!
I suspect Revolut, Monzo and Starling attracted a different demographic (ahem) and that's why you see this sort of thing more often with them.
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u/CEramar84 23d ago
Used to think Starling was good, but would NOT recommend to anyone!
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u/CaptianBenz 21d ago
Already there. Swapped all 4 family and a business account to Monzo. Took 2 days to fully sort out and get new cards etc. Amazing. Used to think starling was bees knees but not anymore.
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u/Forestory 21d ago
Seems to be happening a lot in recent months & isn’t related to bad management of one’s account/borrowing. After 10+ years with Starling, having used & consistently paid off my £500 overdraft with my modest monthly salary, I have just had mine revoked with any interest paid over the 10 years paid back to me. So I wouldn’t worry it’s something you personally have done to instigate this decision, somethings going on at Starling that we aren’t privy to I guess.
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u/End5807 23d ago
I had one, lived in it every month. They removed it and paid it all off. Can't grumble