New Halifax Overdraft Charges

wizzywig27
wizzywig27 Posts: 1,536 Forumite
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in Budgeting & bank accounts
Halifax new charges are 1p per every £7 borrowed. So basically if your overdraft is below £700 then these new charges benefit you. However of (like me) your overdraft is more then you get charges more than you do currently. Means I will be charged TRIPLE what I currently pay.

I am literally flabbergasted by their new charges.
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Comments

  • d123
    d123 Posts: 8,621 Forumite
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    Time to find a cheaper way to lend money?

    Living in an overdraft is foolish and expensive.
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  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    You are right, hindisght is a wonderful thing.

    The thing is paying £30 a month seemed expensive but £90 is extortionate!
  • d123
    d123 Posts: 8,621 Forumite
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    wizzywig27 wrote: »
    You are right, hindisght is a wonderful thing.

    The thing is paying £30 a month seemed expensive but £90 is extortionate!

    As I said, this should probably give you the motivation to find a better solution than living in a never ending overdraft.
    ====
  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    Thanks. Unfortunately life isn't as simple as that.
  • AliceBanned
    AliceBanned Posts: 3,048 Forumite
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    Mine will be around £60 per month when the changes come in, unless I find a solution. I should be able to shift some of the debt and was trying to repay it anyway, but not quickly enough!


    I'm on the line to them now as I have phoned to explain and they have put me through to their money management team. Hopefully they understand that for some people the timing is paramount and it could result in a further debt spiral. I have been motivated to pay it off anyway as the charges were bad enough already, but life happens..


    Will see what they say and report back. Needless to say their phone lines appear inundated..
  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    Well I am on hold to them at the moment too.

    I tried to make a complaint and they refused it (basically said it will not be upheld).

    The guy I spoke to said no one is unhappy and no one has complained and everyone is in favour of the changes.

    So it's just us two then!

    I have been making a conscious effort to pay my accounts off, as just as I am starting to make progress they announce this.

    I am going to request to close the account at the current rate and pay off what I was paying in fees (similar wo when a credit card company hikes their interest rates). I'll see what they say
  • AliceBanned
    AliceBanned Posts: 3,048 Forumite
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    Hi


    I got through and they said call back in October! Shocking that they said other people are happy with the charges.. it clearly depends on personal circumstances so that's no help to us.


    I might be able to get a credit union loan and get my overdraft down to £800 ish by November by doing that. Have you thought about doing that, if you can't shift the overdraft elsewhere and the fees will put you in hardship?
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    Can anyone tell me what the APR is at the new charge, say I had £1,000 outstanding for 1 year?
  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    They told me to call back in October too. This is shocking!
  • AliceBanned
    AliceBanned Posts: 3,048 Forumite
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    Tom99 wrote: »
    Can anyone tell me what the APR is at the new charge, say I had £1,000 outstanding for 1 year?



    Halifax quoted £2 a day for an overdraft of £1400. If anyone can work out the APR on £1000 from that.


    More than some payday lenders I imagine..
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