OVERDRAFTS
Things to think about before keying an overdraft
General Eligibility
Is the customer 18 years of age or more?
Is the customer a UK mainland resident?
What type of account does the customer hold?
(Cashminder accounts are not eligible for
overdrafts)
What does the customer want the overdraft for?
TOP TIPS FOR TALKING ABOUT OVERDRAFTS
There might be other options available to the
customer depending on the amount and
purpose of the overdraft, such as a personal
loan or a credit card.
We cant offer lending for business purposes.
How much does the customer want to borrow?
The REC limit on Sapphire will indicate how
much is likely to be accepted if you load it on
the account.
Remember that the REC limit does not
guarantee the overdraft to be accepted outright.
If the customer wants more than this, you will
need to complete a lending referral to CSU for
manual review.
Remember that overdrafts can only be keyed in
multiples of 20. (So if a customer requests an
overdraft of 110, explain that the options
would be 100 or 120, but allow the customer
to make the decision on which they have a need
for we dont want to over-lend.) The maximum
borrowing amount for an overdraft after 30th
December 2016 will be 2000.
Never advise a customer. We can only give
customers the facts about the types of lending
we offer, and allow them to make an informed
decision.
There is no longer a fee for loading an overdraft,
however customers will be charged debit
interest if they are using their overdraft this
varies depending on what account they hold
with us, but this information will be on the
script.
SMILE customers should apply for overdrafts on
line.
Once submitted, a message will appear to advise
whether the overdraft has been accepted.
If accepted, the overdraft will appear immediately,
but will not be available until next working day.
If declined, you will need to complete the referral
SIM to have a manual review by Credit Services
Underwriting (CSU).
Once the overdraft is accepted, confirmation and
T&Cs will also go out to the customer in the post
ensure you validate the address on file.
Any overdraft that is loaded on Sapphire (or PB) and
is accepted will show on the account IMMEDIATELY.
This means that any overdraft already on the
account will be overridden once this happens we
cant guarantee the previous amount will be
LOADING AN OVERDRAFT ON SAPPHIRE
REMEMBER to read the full script before loading an
overdraft!!!
Once youve established that the customer is happy
to proceed, you can load the overdraft onto the
account if they have a REC limit.
Enter the amount required and the expiry date. The
maximum time you can load an overdraft is 12
months (you can load for shorter amounts of time if
required).
OPI should always be NO for both account holders.
Select reason for overdraft and enter a contact
number for the customer.
accepted again.
If declined, the message on the screen will advise
you that the decision has been referred. This does
not happen automatically you will still need to
complete the referral SIM.
Under JUSTIFICATION enter the reason for the
overdraft (eg; ACCOUNT MANAGEMENT)
To process, press enter and enter Y in the bottom
right hand corner to confirm.
A message will appear at the bottom of the screen
confirming whether the overdraft has been accepted
or referred. If referred, you MUST complete the
referral SIM to CSU also.
If the overdraft refers on Personal Banker, you should
be able to cancel this and rekey for a lesser amount
if required.
The section on PB which asks for an OVERRIDE CODE
can be left blank this is only really used if applying
a temporary overdraft for a customer, perhaps in line
with a complaint etc.
LOADING AN OVERDRAFT ON PERSONAL
BANKER
The principles for loading an overdraft on PB are no
different to Sapphire, but means you have another
way to load the overdraft if, for example, Sapphire
went down.
Overdrafts can be keyed on PB screen [Link]
Under BRANCH/TELEPHONE enter Y
Enter the amount and expiry date for the overdraft
You should always enter N for both parties under
OPI
Always refer to a team leader before loading a
temporary or exception overdraft for a customer
with no REC limit.
this down.)
Once you have completed the SIM, it goes to CSU for
manual review. The timescale on this is generally 48
(working) hours, however this can vary depending on
work load.
Once a decision has been made, a letter will go out
in the post to the customer. You can also add their
mobile number to the SIM so they can receive text
message updates. CSU might also contact the
customer to discuss a different amount than
requested if necessary.
Again, confirmation will go out in the post, so ensure
you validate the customers address.
The referral SIM will ask you for details such as the
customers Employer name and length of service
ensure that whatever you record on the SIM is
updated on PB on the account.
REFERRING AN OVERDRAFT TO CSU
If the overdraft is declined, or there is no REC limit to
start with, you will need to refer the decision to CSU
for review.
Complete the SIM on the intranet, and ensure that
you read paragraphs in red to the customer in full.
This SIM requires a little more information than
Sapphire be as thorough as possible what does
the customer want the overdraft for? What is their
plan for repaying it? (For example if the customer
tells you they want an overdraft for 2 months to pay
some urgent bills, and are waiting for a lump sum in
to their account to pay this off, make sure you note
-A customer whose overdraft has expired, leaving
their account overdrawn and there is a very strong
likelihood that the renewal will be declined by CSU
(Customer is a H risk indicator, has no REC limit, has
a lot of account misuse etc).
-A customer whose overdraft is due to expire, and
their renewal has been declined by CSU/ is likely to
be declined.
WHEN MIGHT I NEED TO REFER TO FINANCIAL
SUPPORT?
Financial Support can sometimes to look to place a
Reducing Overdraft on the account, whereby the
amount of the overdraft decreases by a set amount
each month, until it drops off completely.
We would only look to offer a customer a reducer if
they are in financial difficulty. This might include:
- A customer whose overdraft has expired, leaving
their account overdrawn and their renewal has been
declined by CSU.
OVERDRAFT EXPIRY
As mentioned above, the maximum time an
overdraft is loaded for is 12 months.
About a month before the overdraft is due to expire,
the customer will receive a letter informing them of
this.
If the customer still has a sufficient REC limit, and
their overdraft is set to auto renew, they will receive
a letter informing them that the overdraft will be
renewed for a further 12 months unless they specify
otherwise (If the overdraft has been on auto renew
for more than a year, customer will not receive a
letter each year).
If the customer no longer has a sufficient REC limit,
or the account is not set to auto renew, they will
receive a letter informing them that they need to
contact us if they still want the overdraft.
You can see whether an overdraft is set to auto
renew on PB screen [Link] (Overdraft
Maintenance). You can also change this from Y to
N or vice versa (for example if the customer
advises us that they want the overdraft to finish on
the expiry date rather than continue).