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  • FIRST POST
    • wizzywig27
    • By wizzywig27 12th Aug 17, 12:01 PM
    • 986Posts
    • 689Thanks
    wizzywig27
    New Halifax Overdraft Charges
    • #1
    • 12th Aug 17, 12:01 PM
    New Halifax Overdraft Charges 12th Aug 17 at 12:01 PM
    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.
Page 6
    • Westie983
    • By Westie983 22nd Aug 17, 9:43 AM
    • 3,842 Posts
    • 14,003 Thanks
    Westie983
    Firstly have you updated your address with Halifax?(due to issues posted elsewhere about not getting statements or letters) if so have you received the letter notifying of the changes? Many customers are and have accepted offers with the letters which gives you a period of time to repay the overdraft at a higher rate calculation. This would mean the charges wouldn't triple straight away and within the offer period you will be reducing the overdraft amount so the fee calculations will be on a lower figure when the offer expires.

    What Halifax are doing is unfair and shows a total lack of understanding of their customers needs and it worries me that banks are happy to send customers into debt.
    Originally posted by wizzywig27
    Banks are not happy to send customers into debt customers have done this themselves by using the [banks] money, and therefore the banks are clawing back some of the risk they have with customers whom have high interest/value overdrafts whom are not repaying them or with a low repayment rate and they could end up in further problems.

    The changes have been implemented so it forces customers/encourages those customers to repay the overdrafts that they probably wouldn't have done without the changes.

    Debt has been created by the customer and not the banks, that said the charges will be higher then before and could/will push customers further into the overdraft but they will no longer be the £5 unauthorised fees for using an overdraft (which to be fair can and have cost over £100 for a small mistake/overdraft usage.)

    I suggest as others have done to look for solutions to enable you to repay the overdraft off slowly, quicker then you have done, or find a loan/credit card that will cover or replace some of the amount, with a lower monthly repayment then the £90 odd you mention.

    I think customers will get offers to help bridge the gap in the changes, to ease them in, which will help work out some breathing space, for the extra cost of fees being applied. Its also going to be easier to work out the charges as they come out each day rather then 30 days after the month has finished, which it does now.

    Customers then forget about the fees and then they are pushed into an unauthorised overdraft/Exceed limit and are charge more money in fees. This I feel is incorrect as the bank is charging on charges, which just spirals.

    Why the group has had to make this change due to regulations around unauthorised fees and excessive spirals for customers.

    Its not what you want to hear, but it will be happening, you have had notice to make headway in what you want to do. There will be a team responsible for money management and those in financial difficulties but I believe the solution to this is to reduce the fees but the account can not be used, and this may not be an solution for some.

    There is help out there from the banks, and some research done by customers, a middle ground will be met.

    This issue has been caused due to customers spending banks money and then finding they cant afford to do so, when its recalled or changed.

    You mention above about applying for loans/overdrafts on your other bank accounts, have you taken into consideration your credit cards held with HSBC, as this will add up, you have only just paid back Santander arrears, has this cleared and been updated on your credit report yet? This could be a reason why you are being declined.

    Just a thought of course,

    Westie983
    Last edited by Westie983; 22-08-2017 at 9:53 AM.
    Save 12k in 2017 #16 Total £22,555/£12,000 = 187.95%
    Sealed Pot Challenge ~ 11 #97 Total (£410) + £0.00/£800 = 51.25% ( x 11)
    Xmas 2017 £1 a Day #6 Total £400/£365 = 109.58%
    Virtual Sealed Pot #1 Total £1,600/£1,800 = 88.88%
    £2 Savers Club 2017 #3 Total (£1,450)+£50/£2,000 = 75.00%

    Total £26,465/£16,965 = 155.99%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • wizzywig27
    • By wizzywig27 22nd Aug 17, 9:59 AM
    • 986 Posts
    • 689 Thanks
    wizzywig27
    I'm sure I've recommended M&S to you twice now- forget soft searches!

    There's also Hitachi...

    Keeping your credit report clean is all well and good, but if you need credit, you need to have a couple of searches.
    Originally posted by amanita
    Is that hitachi for a loan?

    I am co fused, what difference will making a hard search do?
    • amanita
    • By amanita 22nd Aug 17, 10:05 AM
    • 63 Posts
    • 42 Thanks
    amanita
    Soft searches are a basic check on affordability. If you're consolidating debt, you have to be able to afford the old and new debt at the same time, which is a bit crazy! Speaking to a human underwriter they will often work through this to make it possible.

    If you call M&S for example, and ask them to consolidate some debts, they will talk about what you're promising to pay off and factor that into affordability. You could discuss wiping out another credit card perhaps, or something else, and this would make your affordability better. You need to talk to a human, and get an underwriter to look at your case- computers will all reject you judging by your experience. I can't remember off the top of my head if M&S uses human underwriters like that, pretty sure they do, but most of my recent experience has been First Direct, who are pretty sympathetic. That does require an account with them however. Hell, why not give them a ring too?

    If you have a sympathetic relative who can trust you, they may get one of these loans for you and you can pay them back. Make sure you don't break that trust if you do!
    Last edited by amanita; 22-08-2017 at 10:12 AM. Reason: Didn't explain soft search rationale
    • wizzywig27
    • By wizzywig27 22nd Aug 17, 10:07 AM
    • 986 Posts
    • 689 Thanks
    wizzywig27
    Firstly have you updated your address with Halifax?(due to issues posted elsewhere about not getting statements or letters) if so have you received the letter notifying of the changes? Many customers are and have accepted offers with the letters which gives you a period of time to repay the overdraft at a higher rate calculation. This would mean the charges wouldn't triple straight away and within the offer period you will be reducing the overdraft amount so the fee calculations will be on a lower figure when the offer expirees

    You mention above about applying for loans/overdrafts on your other bank accounts, have you taken into consideration your credit cards held with HSBC, as this will add up, you have only just paid back Santander arrears, has this cleared and been updated on your credit report yet? This could be a reason why you are being declined.

    Westie983
    Originally posted by Westie983
    Yes definitely update address with everyone else lol, got a letter from them yesterday funny enough. Not had my letter yet though, either in my online banking area or through the post.

    You may have a point regarding Santander, when I checked equitable yesterday it hadn't updated - but last update was 20th July so would have expected it to update 20th August, I'll update it today.
    Last edited by wizzywig27; 22-08-2017 at 10:11 AM.
    • wizzywig27
    • By wizzywig27 22nd Aug 17, 10:10 AM
    • 986 Posts
    • 689 Thanks
    wizzywig27
    If you call M&S for example, and ask them to consolidate some debts, they will talk about what you're promising to pay off and factor that into affordability. You could discuss wiping out another credit card perhaps, or something else, and this would make your affordability better. You need to talk to a human, and get an underwriter to look at your case- computers will all reject you judging by your experience. I can't remember off the top of my head if M&S uses human underwriters like that, pretty sure they do, but most of my recent experience has been First Direct, who are pretty sympathetic. That does require an account with them however. Hell, why not give them a ring too?
    Originally posted by amanita
    You referring to a M&S card or loan? I can't see a money transfer card. Also isn't M&S under sae umberella as HSBC?

    I did apply for FD and they said no.
    • Dobbibill
    • By Dobbibill 22nd Aug 17, 10:28 AM
    • 2,471 Posts
    • 3,568 Thanks
    Dobbibill

    You may have a point regarding Santander, when I checked equitable yesterday it hadn't updated - but last update was 20th July so would have expected it to update 20th August, I'll update it today.
    Originally posted by wizzywig27
    The CR entries will impact you applying for credit. Even if resolved it can take up to 3 months to update with the CRAs.

    Make sure you check your CR with all 3 CRAs.

    Experian via MSE credit club
    Equifax via Clearscore
    Call Credit via Noddle

    All 3 can be obtained free so don't go getting into any free trials with subsequent subscriptions of up to £15 a month.

    With the information that has come to light around your Santander arrears, I would stop the applications for further credit until this is resolved or 6 months has passed since the most recent 'red' marker, whichever is the sooner.

    With a second job not being an option, you need to see about overtime (asking for pay rise isn't quite the same) and also look at selling things, anything you have little or no use for. One man's rubbish is another man's treasure as they say. Post it anywhere that doesn't incur fees for selling. As well as the DFW board (I know you said previously you didn't feel it would benefit but lots of posters use that board rather than the 'Budgets & Bank accounts board just to do a SOA and get hints & tips on their budget - they are not all in debt) there is also an old styles board with lots of tips about batch cooking to reduce grocery bills - this may help. The Energy board has advice about schemes for reduced water bills etc. There's so much advice on the different boards - don't write any of them off...explore, there's loads of ideas to be found.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • wizzywig27
    • By wizzywig27 22nd Aug 17, 10:33 AM
    • 986 Posts
    • 689 Thanks
    wizzywig27
    The CR entries will impact you applying for credit. Even if resolved it can take up to 3 months to update with the CRAs.

    Make sure you check your CR with all 3 CRAs.

    Experian via MSE credit club
    Equifax via Clearscore
    Call Credit via Noddle

    All 3 can be obtained free so don't go getting into any free trials with subsequent subscriptions of up to £15 a month.

    With the information that has come to light around your Santander arrears, I would stop the applications for further credit until this is resolved or 6 months has passed since the most recent 'red' marker, whichever is the sooner.

    With a second job not being an option, you need to see about overtime (asking for pay rise isn't quite the same) and also look at selling things, anything you have little or no use for. One man's rubbish is another man's treasure as they say. Post it anywhere that doesn't incur fees for selling. As well as the DFW board (I know you said previously you didn't feel it would benefit but lots of posters use that board rather than the 'Budgets & Bank accounts board just to do a SOA and get hints & tips on their budget - they are not all in debt) there is also an old styles board with lots of tips about batch cooking to reduce grocery bills - this may help. The Energy board has advice about schemes for reduced water bills etc. There's so much advice on the different boards - don't write any of them off...explore, there's loads of ideas to be found.
    Originally posted by Dobbibill
    Thanks for the information. I am genuinely hoping that Santander at least update my account today to advise I am no longer in arrears, however it does seem to suggest they are a month behind everyone else with their reporting.

    I will check out the other boards.

    On another note the FCA got back to me today. Didn't say much but said it's been raised to LBG and the team that deals with them (not my specific case)
    • wizzywig27
    • By wizzywig27 24th Aug 17, 11:47 AM
    • 986 Posts
    • 689 Thanks
    wizzywig27
    Just a quick update for those that are interested. Had official response from exec support team today, won't go in to too much of what was said but one thing that was mentioned was a possible loan, or a reduced rate of 1p for every £14 for a short period of time.

    I also got my letter today, I had a red/orange triangle which apparently out of the three categories is the worst. This symbol meant I would get a possible loan or reduced rate.

    So I call the number on the letter and he called through to exec support who told him to tell me to ring the number on the letter. I said I did, he said oh, ok. So he put me on hold to speak to his manager who told him to pass me to a number. So he did, and guess what, they told men there is nothing they can do....serisouly do this bank have a clue what's going on?

    I decided to call the number I was given and she said I'm not eligible for a loan (so why did system suggest it), and that's all. She said she can pass men through to the dept who deals its with and gave me the number, I told her I'd just called that numberj and got her. She said you shouldn't have as I deal with bank accounts not overdrafts...

    The story continues.....
    • AliceBanned
    • By AliceBanned 24th Aug 17, 7:41 PM
    • 2,347 Posts
    • 1,099 Thanks
    AliceBanned
    Just a quick update for those that are interested. Had official response from exec support team today, won't go in to too much of what was said but one thing that was mentioned was a possible loan, or a reduced rate of 1p for every £14 for a short period of time.

    I also got my letter today, I had a red/orange triangle which apparently out of the three categories is the worst. This symbol meant I would get a possible loan or reduced rate.

    So I call the number on the letter and he called through to exec support who told him to tell me to ring the number on the letter. I said I did, he said oh, ok. So he put me on hold to speak to his manager who told him to pass me to a number. So he did, and guess what, they told men there is nothing they can do....serisouly do this bank have a clue what's going on?

    I decided to call the number I was given and she said I'm not eligible for a loan (so why did system suggest it), and that's all. She said she can pass men through to the dept who deals its with and gave me the number, I told her I'd just called that numberj and got her. She said you shouldn't have as I deal with bank accounts not overdrafts...

    The story continues.....
    Originally posted by wizzywig27
    Oh dear wizzywig. Mine has a red dot as well...not looking good is it?!
    DFW - goal December 2019

    _________________________
    • wizzywig27
    • By wizzywig27 24th Aug 17, 8:32 PM
    • 986 Posts
    • 689 Thanks
    wizzywig27
    Oh dear wizzywig. Mine has a red dot as well...not looking good is it?!
    Originally posted by AliceBanned
    Mine has orange triangle, apparently the worst category.

    Most they can offer me is 1p for every £14 until Feb
    • amanita
    • By amanita 24th Aug 17, 8:46 PM
    • 63 Posts
    • 42 Thanks
    amanita
    This is actually not too bad a deal- your monthly bill goes up by £13 rather than £46. Of course only short term, but in the meantime you can fight/borrow money off family/increase hours or extra job?
    • wizzywig27
    • By wizzywig27 24th Aug 17, 9:18 PM
    • 986 Posts
    • 689 Thanks
    wizzywig27
    Yeah it's still.not great - means my outgoings are still going up despite a 50% reduction, what does that say!

    Anyway I won't get this until October when I call back. Apparently there are letters going out nearer the time inviting customers to call them to discuss their options.

    Anyway I am looking at either options bit in the meantime it's with the GPS who contacted me today to ask for the final letter from Halifax
    • Skoobz
    • By Skoobz 25th Aug 17, 3:23 PM
    • 6 Posts
    • 3 Thanks
    Skoobz
    Good to know, thanks. I'm in the orange triangle club as well, but my overdraft is £1000. Hopefully will be able to get it down to a reasonable level if they offer me the same deal.
    • phil90210
    • By phil90210 15th Sep 17, 3:10 PM
    • 2 Posts
    • 1 Thanks
    phil90210
    phone number
    hi can some one post the number on here for me to try and get a reduction as i have a lost the letter
    • AliceBanned
    • By AliceBanned 16th Sep 17, 5:01 PM
    • 2,347 Posts
    • 1,099 Thanks
    AliceBanned
    hi can some one post the number on here for me to try and get a reduction as i have a lost the letter
    Originally posted by phil90210
    Hi


    It's 03456003603. Best of luck.
    DFW - goal December 2019

    _________________________
    • redditrabbit
    • By redditrabbit 16th Sep 17, 5:23 PM
    • 23 Posts
    • 1 Thanks
    redditrabbit
    Hi


    It's 03456003603. Best of luck.
    Originally posted by AliceBanned
    You had any luck so far?
    • AliceBanned
    • By AliceBanned 16th Sep 17, 6:12 PM
    • 2,347 Posts
    • 1,099 Thanks
    AliceBanned
    You had any luck so far?
    Originally posted by redditrabbit
    Hi redditrabbit - no - Halifax told me to phone them back in October when they could discuss what they would do.


    Just looked at my statement - £45 charge this month on the previous charges so I hope I can sort something out - I am looking into a credit union loan next month as well - to shift the overdraft to if I can but I'm not finding credit easy to get at the moment.
    DFW - goal December 2019

    _________________________
    • hilbil21
    • By hilbil21 21st Sep 17, 1:24 PM
    • 45 Posts
    • 10 Thanks
    hilbil21
    Ok so I have worked out my overdraft charges each month are going to be £106! I have managed to obtain a credit card with a money transfer interest rate of 19.7% so if I use the money transfer to pay off the overdraft can someone tell me how much the interest will be each month on a balance of £2400?

    I cant get a loan unfortunately

    Thanks in advance
    • PeacefulWaters
    • By PeacefulWaters 21st Sep 17, 2:30 PM
    • 7,184 Posts
    • 8,842 Thanks
    PeacefulWaters
    Ok so I have worked out my overdraft charges each month are going to be £106! I have managed to obtain a credit card with a money transfer interest rate of 19.7% so if I use the money transfer to pay off the overdraft can someone tell me how much the interest will be each month on a balance of £2400?

    I cant get a loan unfortunately

    Thanks in advance
    Originally posted by hilbil21
    Roughly £40 a month which will reduce as your balance reduces.
    • hilbil21
    • By hilbil21 21st Sep 17, 2:38 PM
    • 45 Posts
    • 10 Thanks
    hilbil21
    Thank you I thought so. I will be doing that then! These new overdraft charges are disgusting.
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