“We’re intending to close the ANZ Assured overdraft linked to your deposit account from 45 days from the date of this letter.
Account Number: XXX
As part of our work to simplify products and services, we’re intending to close your ANZ Assured overdraft from 45 days from the date of this letter.”
No warning, no discussion, no attempt even, to obtain my opinion. Totally one-sided ARROGANCE!
And for whom is the closure of the overdraft going to make life “simpler”? Certainly not for me, and I am the client! I am one of the many hundreds of thousands of ANZ clients who pay the wages of all the ANZ staff from THE TOP to the bottom!
I will admit that I don’t use the Overdraft facility very often, but it has been very convenient on occasions, WHICH IS WHY I WENT TO ALL THE (ANZ procedural) TROUBLE OF APPLYING FOR IT!
However, clearly the ANZ has made a decision that whilst it makes life “simpler” for them, (that is code for cost cutting and therefore making even higher profits than they already do), I, the client, can go jump off a cliff as far as they are concerned!
I applaud businesses that give good value for money and I am prepared to pay for that value-for-money service, but in the current climate, when interest rates for borrowing are extremely high, and interest rates for savings are virtually negligible, this is a one way street. The bank’s way!
That is rather interesting. Because the ANZ site says that although the overdraft will no longer be offered after November, existing users can continue to use it at existing overdraft limits.
Similar feelings here on ANZ’s attitude. Having found advantage in the prior packaged options of zero account fees for a one off cost per customer. The ANZ has been progressively rolling back the zero and low cost benefits. At the same time interest rates have been no better than elsewhere. The service over the counter if one can find a branch has become very limited. Appointments are required in many instances for matters as simple as opening a new fixed term deposit and transferring from an existing account.
The ANZ future looks to be divided between two types of customer. A business customer with one range of products and the personal customer now being pushed to the ANZ all digital product “ANZ Plus”. Note the plus product provides zero branch access. As far as the digital product might appeal, ANZ requires one to apply as a new customer rather than encouraging existing customers. EG by offering a simple transfer using one’s existing authenticated profile. One can only apply online. It says those who do not make the switch will find less that appeals by staying with the old ANZ.
To ask others how many other ways the ANZ is withdrawing services and benefits? To also ask if the others of the big 4 or 5 banks are on the same pathway. To note the takeover of Suncorp by ANZ is scheduled to be finalised by the end of this month July 2024. Two very different banking experiences first hand.
Further concentration of the Banking sector by the big 4. Not a good outcome in my opinion but the regulatory authorities and the Minister have signed off on the deal to restrict ownership again. Something like the big 2 in Supermarkets, concentration is often derided in the speeches but often then approved.
It appears that ANZ are closing some overdraft attached to some accounts. While they are closing off the ANZ Assured overdraft facility, they offer other overdraft facilities, such as:
If you need to maintain an overdraft facility, have a chat to ANZ about other products that they offer.
Businesses change their services and products from time to time, to meet customer needs or due to changes in customer preferences. Where ANZ may have been poor in their customer service, is not providing alternative solutions to those customers impacted by a change.
Yes there are always options, not all of them palatable though. Without attempting something to get an alternative by a consumer, nothing will be secured by a consumer. I think the post by @don4 was about the lack of contact about what was happening, however @don4 posted that there was “No warning” and that is obviously wrong as the warning given was 45 days. There may have been no discussion (often isn’t with many product withdrawals by many businesses) nor any seeking of the user’s opinion and again this is often the case with many businesses. Decisions are often made with the business outcome in mind, not what a consumer may hope for or want, this is capitalism after all.
I discovered that my ordinary transaction account with one of the big four had an overdraft facility. Didn’t ask for it, but there it was when I accidentally overdrew funds.
Wonder when I will get a letter advising the withdrawal of this. The big four tend to match each other pretty closely on services they provide for ordinary personal banking. And ordinary personal banking is just an annoying cost as their main business is lending.
Already had my online only bank advise that from July, bonus interest in my high interest account would only occur if the minimum amount deposited almost tripled.
As a 20+ year client of the ANZ, with numerous different accounts I’d expect to be treated somewhat better than this! Clearly one can open other accounts or even switch banks as The Treasurers of various governments always seem to imply is the easiest thing in the world to do, but as we all know, especially in today’s world, nothing, especially switching banks, is easy! They have you by the short and curlies!
You don’t need to switch banks. As outlined above, ANZ have other options for accounts with overdraft facilities. Our own bank has changed our account settings and we have migrated to new account types without any problems.
In our case a new account wasn’t opened. It was extremely easy as the bsb, account numbers and name remained the same. The only change was the account type attached to the account.
ANZ has given you 45 days to contact them and discuss what options may exist for you when your current account loses its overdraft facility.
As indicated above, I suggest contacting ANZ to discuss what options are available to you to replace your current overdraft facility. You might find the change to move forward is extremely straight forward. If say costs of banking increases with any change, it is likely they will agree to negotiate a cost/fee structure to ensure you aren’t impacted financially by the change. We did this with our own bank as they wanted to retain our business and ensure the their changes didn’t impact us financially.
Many banks are changing accounts at the moment due to the phasing out of cheques (ANZ have started phasing out cheques from 16 June 2024). This substantial change in banking may have prompted some banks to review and rationalise the account types they offer. ANZ have been doing this for some time with various accounts, as outlined here:
Rather than stressing about the change, I suggest you contact ANZ.
I am not happy with ANZ breaking its promise to provide me with my ANZ Assured Overdraft Facility.
I received a letter in the post this morning (30/07/2024) stating that ANZ is going to close my Assured Overdraft Facility on the end of June 2025 or earlier if my facility balance is Zero for a period of 30 days. Is this legal? Can ANZ just cancel the agreement they made with me to provide me with my Overdraft Facility. I have always kept my part of the agreement and paid any interest charges accrued on my Overdraft Facility. Has ANZ thought about its customers when they decided to Cancel their agreement to provide this service? I am very unhappy with ANZ.
Yes, it is perfectly legal as banks review and change their services over time. They also rationalise number of services or type of accounts, especially when one fall out of favour with its customers.
They would have done and offer other accounts with overdraft facilities.
In addition, many large businesses including banks operate on an 80-20 principle based on the fact that 80% of their profits come from 20% of their customers. The fallout is that 80% of their customers are not profitable enough for them to care about. They cater to the 20% who bring in their profits, fund bonuses, and enhance ‘shareholder value’. Yes they do think about it.
It is worth bearing in mind that “overdraft” means that you get to spend money that you don’t have, it means that you get to spend their money. It’s their money and they get to decide whether to give it to you or not.
Yes, technically, it isn’t their money either. It is (mostly) depositors’ money. But a bank gets to decide on behalf of depositors whether you can have their money.
Almost all ongoing services have some kind of clause that allows the service to end unilaterally. The alternative would be relatively unpalatable. So I expect that if you wade through pages and pages of legalese, there will be something in the Terms and Conditions regarding how the bank ends the service.
So you are getting rather more notice than the OP??
In theory, that is only a statement of intention. How definite is it that it will happen as proposed? If you give them no reason to reconsider, I guess it will happen.
It would be good to extract out of the ANZ exactly how many customers are potentially affected by this proposed change. That is, how many customers have the overdraft facility but are not using it? and how many have the overdraft facility and are using it?
in accordance with clause 13, if an Event of Default occurs;
immediately, if required by law, if your linked account is closed, or if a circumstance arises that entitles ANZ to close your linked account under its terms and conditions; or
by giving you 30 days written notice, at any time after 12 months from the start of your credit facility.
You must repay in full all money you owe us under your credit facility upon the closure of the credit facility.
If ANZ provide more than 30 days notification, they have met what has been agreed with the account holder.
I wonder if @don4 contacted ANZ as suggested. It would be great if a contribution was made on how @don4 got on and what was the ultimate resolution with ANZ. Such information may be useful to other members who have an Assured Overdraft Facility and received similar correspondence.
It isn’t directly relevant to the topic as it makes no difference but much of what they lend is new money not from depositors. It is a general international practice that banks can lend money they do not have.
Governments create money by the obvious method of printing and minting currency but much of it does not need to have a direct physical representation - it is only book entries. Banks are allowed to lend more than they hold on deposit and borrow from elsewhere.
The rules and controls on how much more they can lend are complex and vary from one country to another but I am not aware of any country where the money in use is limited to currency or to anything that might be considered of intrinsic value such as gold.
Money can be created, however, when financial intermediaries make loans. Accordingly, the concepts of money and credit are closely linked in a modern economy, albeit not one for one. When a bank extends a loan, it makes money available to the borrower, for example, to buy a car, a house or equipment for a business. The bank may credit the deposit account of the borrower, who withdraws the funds to make their purchase. Alternatively, the bank may directly credit the deposit account of the seller on behalf of the borrower. In either case, the loaned funds will tend to find their way into a deposit somewhere in the banking system. This process adds to the supply of money.
For those defending ANZ’s position, also to consider:
ANZ offered a number of products over time (1990’s onwards) including an overdraft or added overdraft facility without the customer requesting one or applying specifically for the added overdraft. Marketing or an enticement to bank with ANZ. Historical products in my experience which were promoted as providing a benefit to the customer as part of a particular package or product.
ANZ has at various times offered these extras as part of fee free services, not really, but part of a single annual payment by the customer for all ANZ services, or other similar arrangement. A better deal (open to scrutiny) for those with multiple customer accounts, investments, sole traders etc. It may have included a zero fee CC. The pre qualification from memory was tied to the size or value of the customers accounts or loans.
I’m with @PhilT in the thinking the profit vs cost equation has been reviewed by the ANZ. The opportunity to cut back on the services of yesteryear while keeping the income stream irresistible to the corporate bean counter and CEO. An ulterior motive, possibly? ANZ if one has been following their marketing has set its direction with ANZ Plus. A product that ANZ presents as out-performing on first inspection any other on offer. It may take time years to wean all off the old products. Why not make the old as unattractive and disagreeable as possible?
A question for those raising objection is whether ANZ in withdrawing or modifying their products is still hitting the same customers fees or an annual fee while removing some or all of the benefits previously promised?
I appreciate all the comments about my problem with the ANZ, but I suspect the subject’s been done to death now. There are a lot of companies that are well “within their rights”, if one refers to this clause or that clause in a 50 page contract, but there are still plenty that understand that “customer service” is a lot more than that! Unfortunately, the (big 4 especially) banks have no real connection with their customers anymore, if they ever did! It’s now all about cutting staff, cutting branches, cutting services, and hiding behind a distant and non-existent “relationship” over the internet.
As far as finding alternative solutions for my occasionally-used overdraft, I don’t intend to spend a heap of time travelling to the “nearest” branch, to stand in a queue for half an hour, or spend an hour of my day waiting to have someone answer the phone only to be put on hold or passed on to someone else. And all that just to beg them to replace what I already had!
It appears that the overdraft facility may not be all that important moving forward, if one is not wanting to call or visit a ANZ branch to discuss other options. If you did want to continue with an overdraft facility, I would be sending them an enquiry through their secure message system:
I would also be asking them to call at times which are convenient. This ensures that your inconvenience is mnimised and makes them do the work to retain your business.
