Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • wizzywig27
    • By wizzywig27 12th Aug 17, 12:01 PM
    • 986Posts
    • 690Thanks
    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 8
    • amanita
    • By amanita 16th Nov 17, 4:38 PM
    • 63 Posts
    • 42 Thanks
    amanita
    Well done! Can I suggest you just continue the amazing work you've done to reduce your overdraft so much and just switch when you get the chance? It looks as though you're going to escape.

    I don't think you're going to win this one I'm afraid, but at least you're no longer facing ruin.

    If you really do carry on fighting, please let us know the outcome!
    • PeacefulWaters
    • By PeacefulWaters 16th Nov 17, 6:53 PM
    • 7,285 Posts
    • 9,014 Thanks
    PeacefulWaters
    Ok, so here is my update - its laughable really how this bank are treating their customers, if this was my younger self and had the rest of my life ahead of me id run for the hills with their money - not that I am condoning this to anyone - of course that is just my opinion.

    I may (or may not) have mentioned in previous posts I had complained to the CEO of Halifax. Well as part of the respone from the Chief Exec's office was that they may be able to offer me a loan, or barring that a rate of 1p for every £14 borrowed (half price) until February. He basically told me there was nothing else they can do, and wait until November to call them back.

    I wasnt happy woth this response so I went to the FOS - I also reported the bank and their practices to the FSA.
    Originally posted by wizzywig27
    The Food Standards Agency?

    Now before I go on, it is worth mentioning that I reduced my overdraft by £1520 to £480 - my aim is to clear this by January.
    Well played.

    I have to say the FOS has been nothing short of a joke from the beginning. Lack of updates, no support (he actually said I was putting up barriers by not agreeing to the Debt Management Plan (similar to the above where the suggested sending to collections to arrange an Arrangment to Pay), he besically said the bank have made no errors and he cannot do anything. I explained they are sending me into financial hardship, are you not able to take that into consideation, he said no (surprises me that). I mentioned to him that I have it in writing that they can offer me 1p for every £14 but now the bank are saying they are unable to even offer me that - he states the wording of the letter is confusing but he is likley to side with them (it states - and I am recalling this from memory as I dont have it on me - that 'We may be able to offer you a loan if eligible; barring that we are able to offer 1p for every £14 borrowed') He claims that as it is a part of the same sentence then he also means they 'may' for the 1p for every £14 as well - I said I didnt agree.

    I have chased the FOS this morning and got this reply:

    Thank you for your email. I am currently awaiting Halifaxís response as I have approached it asking if it would be willing to offer you the reduced rate on your overdraft until February 2018 considering you have recently reduced the amount of your outstanding balance. I will keep you updated further upon receiving its response.

    Now, I thought the Obudsman was impartial, and didnt take it's own views into view when making a decision, surely him determining what was meant in the letter is just that? I am also confused as to why he is 'asking' them rather then 'requesting' or 'telling them' to honour the agreement I have in writing.

    Its a farce. I cannot wait to ditch this bank.
    The FOS are between a rock and a hard place. It's not their job to rule on a bank's overall charging policy.

    Have you had statutory two month's notice of the change?

    Does the letter around halving the charges actually promise you this, or does it say something along the lines of "may be available "?
    • eskbanker
    • By eskbanker 16th Nov 17, 7:31 PM
    • 5,887 Posts
    • 5,844 Thanks
    eskbanker
    Now, I thought the Obudsman was impartial, and didnt take it's own views into view when making a decision, surely him determining what was meant in the letter is just that?
    Originally posted by wizzywig27
    Where there is ambiguity then an ombudsman inevitably has to make a judgement call, based on his interpretation and opinion of what's in front of him - that doesn't prevent him from doing so impartially....

    I explained they are sending me into financial hardship, are you not able to take that into consideation, he said no (surprises me that)
    Originally posted by wizzywig27
    The ombudsman is essentially taking a view as to whether the bank is acting fairly in accordance with its Ts & Cs, and can't really be expected to overrule those Ts & Cs. Not sure how visible your repayments are to FOS but if you've repaid over £1K from your overdraft within a fairly short period of time and are on track to pay off the residual £480 within the next two months, then claiming that (initial) charges of less than 70p a day put you in financial hardship lacks credibility....
    • wizzywig27
    • By wizzywig27 21st Nov 17, 6:46 PM
    • 986 Posts
    • 690 Thanks
    wizzywig27
    Ok, I got my official response from the FOS today for anyone who is interested, basically because I have reduced my overdraft, even though I still have more going out that coming in, they are unable to offer me reduced rate offered previously of 1p for every £14.

    So yet again HBOS word means as much as it did previously. Keeping in mind the letter was sent from the Executive Team.

    I hope this bank ends up like the Northern Rock and the fat cats who have shafted their 2 million customers choke on their sour milk.

    Having banked with them for almost 10 years, as soon as I get my £250 switching incentive from B I will pay off the remainder and finally be rid of their disgusting business practices and pathetic customer service. This bank alone has caused me more worry and anxiety than I deserve, and even now when they can help me to effectively pay off my balance quicker they are still happy to shaft me. If they are going to shaft me at least do me the courtesy of using some lube!
    • wizzywig27
    • By wizzywig27 21st Nov 17, 6:49 PM
    • 986 Posts
    • 690 Thanks
    wizzywig27
    Where there is ambiguity then an ombudsman inevitably has to make a judgement call, based on his interpretation and opinion of what's in front of him - that doesn't prevent him from doing so impartially....

    The ombudsman is essentially taking a view as to whether the bank is acting fairly in accordance with its Ts & Cs, and can't really be expected to overrule those Ts & Cs. Not sure how visible your repayments are to FOS but if you've repaid over £1K from your overdraft within a fairly short period of time and are on track to pay off the residual £480 within the next two months, then claiming that (initial) charges of less than 70p a day put you in financial hardship lacks credibility....
    Originally posted by eskbanker
    Without any idea where that 1K came from? If they asked they would know it came from a loan, which I still have to pay back. But I suppose they don’t really care as long as I’ve paid them

    Edit: in fact they don’t need to ask, they can see the direct debit coming from my account
    • eskbanker
    • By eskbanker 21st Nov 17, 7:59 PM
    • 5,887 Posts
    • 5,844 Thanks
    eskbanker
    Without any idea where that 1K came from? If they asked they would know it came from a loan, which I still have to pay back. But I suppose they donít really care as long as Iíve paid them
    Originally posted by wizzywig27
    Why would they care? They're a bank not a charity and if you've found a way to repay the money you borrowed from them then they're not going to ask too many questions about how you did so - my supposition from your previous post is that they would have honoured their reduced rate offer if you hadn't independently found a way of relieving your financial pressures, but by doing so you may have effectively negated their need to offer assistance....

    Having banked with them for almost 10 years, as soon as I get my £250 switching incentive from B I will pay off the remainder and finally be rid of their disgusting business practices and pathetic customer service. This bank alone has caused me more worry and anxiety than I deserve, and even now when they can help me to effectively pay off my balance quicker they are still happy to shaft me. If they are going to shaft me at least do me the courtesy of using some lube!
    Originally posted by wizzywig27
    It's good that you'll be in a position to vote with your feet and move elsewhere (assuming you've already qualified for the now-withdrawn B offer) but do you honestly believe that B (or others) would do anything differently if/when they increase charges, reduce benefits, etc?
    • PeacefulWaters
    • By PeacefulWaters 21st Nov 17, 11:30 PM
    • 7,285 Posts
    • 9,014 Thanks
    PeacefulWaters
    I hope this bank ends up like the Northern Rock
    It did in 2008.
    • wizzywig27
    • By wizzywig27 23rd Nov 17, 3:38 PM
    • 986 Posts
    • 690 Thanks
    wizzywig27
    Why would they care? They're a bank not a charity and if you've found a way to repay the money you borrowed from them then they're not going to ask too many questions about how you did so - my supposition from your previous post is that they would have honoured their reduced rate offer if you hadn't independently found a way of relieving your financial pressures, but by doing so you may have effectively negated their need to offer assistance....

    It's good that you'll be in a position to vote with your feet and move elsewhere (assuming you've already qualified for the now-withdrawn B offer) but do you honestly believe that B (or others) would do anything differently if/when they increase charges, reduce benefits, etc?
    Originally posted by eskbanker

    Yes, I qualify for the B bank account switch, so that money should be due to January.


    Do I think others would do it, yes, I honestly do (with regard to changing their T's & C's etc). Would they treat their customers any different if/when it happens? Who knows, time will tell I guess. One difference is I will not put myself in the same situation.


    Reagrding the 'offer' - I agree, but does that make it right? I am struggling, and maybe I did what I did because they were 'playing ball' - now they have decided I am financially better off (even though I am not) they dont care about any offers. Around the time it was announced they told everyone to call, they did then that team were telling everyone to call back in November. They way they have handled this has been nothing short of disasterous. It could have been handled a whole lot better!
    • gozzer
    • By gozzer 2nd Dec 17, 12:12 PM
    • 1 Posts
    • 3 Thanks
    gozzer
    I really didn't anticipate having to carry on paying for the old overdraft fee of £25 which is paid in arrears along with the new daily fees. This has caught me out and do't recall reading this in the literature.

    All that said, I am responsible for managing my overdraft and have worked hard to reduce the fees in the last 2 months. The goal is to reduce and eradicate the overdraft once and for all, so on this basis I am pleased this change has happened as it has given me the kick in the butt I needed.
    • eskbanker
    • By eskbanker 2nd Dec 17, 12:41 PM
    • 5,887 Posts
    • 5,844 Thanks
    eskbanker
    I really didn't anticipate having to carry on paying for the old overdraft fee of £25 which is paid in arrears along with the new daily fees. This has caught me out and do't recall reading this in the literature.

    All that said, I am responsible for managing my overdraft and have worked hard to reduce the fees in the last 2 months. The goal is to reduce and eradicate the overdraft once and for all, so on this basis I am pleased this change has happened as it has given me the kick in the butt I needed.
    Originally posted by gozzer
    Congratulations on taking such a sensible attitude to your finances and how to deal with a setback, such a refreshing change from those whose immediate reaction is to challenge, dispute, complain and generally refuse to accept responsibility!

    And the old fees only apply this month (in arrears for charges incurred during October), after that it's just the new ones.
    • sep2612
    • By sep2612 2nd Dec 17, 1:20 PM
    • 1 Posts
    • 0 Thanks
    sep2612
    Arrgghh
    Just checked my online banking and on both accounts have been charged the daily fee for the last month and today charged the £30 arranged overdraft fee on both......I thought the daily fee replaced this?? I have nearly had a heartattack when I saw this! I have tried so hard all month too keep both overdrafts to a minimum and was expecting to be slightly better off (both overdrafts under £700) I could actually cry right now! Is this a charge in arrears?? so just a one off? if so I can just about live with that.....I read all the letters etc and don't recall saying that we would still be charged this?? I budget very hard and keep a very close track on my cash flow (almost out of massive debt!) and it's only £60 but it's completely knocked my cashflow as I have some car bills to pay this month not to mention Christmas! Hoping somebody can give me some reassurance? Tried ringing Halifax but its a 35 min wait to get through!! wondering if everybody in the same boat??
    • Dobbibill
    • By Dobbibill 2nd Dec 17, 1:37 PM
    • 2,536 Posts
    • 3,630 Thanks
    Dobbibill
    Welcome to the forum,

    The one off charge that left 1st Dec is for using your overdraft in October.

    The daily fees started in November so will be the only fees you pay from now on.
    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.
    • roneldridge
    • By roneldridge 3rd Dec 17, 2:41 AM
    • 1 Posts
    • 0 Thanks
    roneldridge
    Still trying to work out their charges myself!
    I was charged £9 for being overdrawn £104.91 for 10 days.
    I have an authorized overdraft of £650 on my Halifax reward account, which I have held for years.
    If it was 1p for every whole £7 pounds then it should be 14 x 1p x 10 days = £1.40 (APR 49%)
    The APR actually works out at 313%
    Do they charge 1p for every £7 on the authorized amount of £650?, that is the only way I can get near the £9 charge?
    • Dobbibill
    • By Dobbibill 3rd Dec 17, 9:10 AM
    • 2,536 Posts
    • 3,630 Thanks
    Dobbibill
    Still trying to work out their charges myself!
    I was charged £9 for being overdrawn £104.91 for 10 days.
    Originally posted by roneldridge
    It sounds like you paid in money on day 10 so on the old structure paid £1 per day. This would have left your account on 1st Dec for October usage.

    I have an authorized overdraft of £650 on my Halifax reward account, which I have held for years.
    If it was 1p for every whole £7 pounds then it should be 14 x 1p x 10 days = £1.40 (APR 49%)
    The APR actually works out at 313%
    Do they charge 1p for every £7 on the authorized amount of £650?, that is the only way I can get near the £9 charge
    On the new structure you are charged on the same day as using the overdraft on the old structure you were charged in arrears - it sounds like you are trying to calculate the new structure fees on the old structure arrears which is where you are getting confused.
    The new structure began on the 2nd November.

    From November you will get charged 1p for every £7 and it will leave at the end of the same day you are overdrawn.
    EG - Overdrawn on 4th Dec by £7 - charge 1p will leave at the end of the day on 4th Dec
    Overdrawn on 5th Dec by £13.99 - charge 1p debiting 5th Dec
    Overdrawn on 6th Dec by £14 - charge 2p leaves at the end of the day on 6th Dec.

    HTH
    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.
    • jpdaduck
    • By jpdaduck 4th Dec 17, 4:40 PM
    • 12 Posts
    • 4 Thanks
    jpdaduck
    Just checked my online banking and on both accounts have been charged the daily fee for the last month and today charged the £30 arranged overdraft fee on both......I thought the daily fee replaced this?? I have nearly had a heartattack when I saw this! I have tried so hard all month too keep both overdrafts to a minimum and was expecting to be slightly better off (both overdrafts under £700) I could actually cry right now! Is this a charge in arrears?? so just a one off? if so I can just about live with that.....I read all the letters etc and don't recall saying that we would still be charged this?? I budget very hard and keep a very close track on my cash flow (almost out of massive debt!) and it's only £60 but it's completely knocked my cashflow as I have some car bills to pay this month not to mention Christmas! Hoping somebody can give me some reassurance? Tried ringing Halifax but its a 35 min wait to get through!! wondering if everybody in the same boat??
    Originally posted by sep2612
    I was in exactly the same boat as you, charged £29.00 on the 1st November and £30.00 on the 1st December. On the Halifax website I put in a complaint this morning (before knowing the overdraft fees are charged in arrears by 2 months) Anyway. They came back to me today and apologized for the confusion, and have offered to credit me back the £59.00 to the account.

    Whether that is account specific or not I don't know, but if you can't get through on the phone, try a complaint online instead.
    • Blackberrycurved
    • By Blackberrycurved 7th Dec 17, 5:21 PM
    • 56 Posts
    • 502 Thanks
    Blackberrycurved
    I don't know what do do I used to pay about £34 in charges this month i have been charge £90 £2ish a day plus £30 I don't know what to do £90 and I'll fall into a black hole my overdraft is £1800 but I'm on £820 into it but it will be more each month what do I do?
    Blackberry Curved debt free 2017 number 17 £0/£11,000
    Save for Christmas 2018 number? £1 /£365
    1% challenge number ? £0/£110
    • PeacefulWaters
    • By PeacefulWaters 7th Dec 17, 5:37 PM
    • 7,285 Posts
    • 9,014 Thanks
    PeacefulWaters
    I don't know what do do I used to pay about £34 in charges this month i have been charge £90 £2ish a day plus £30 I don't know what to do £90 and I'll fall into a black hole my overdraft is £1800 but I'm on £820 into it but it will be more each month what do I do?
    Originally posted by Blackberrycurved
    1) Earn more.
    2) Spend less.
    3) Restructure the debt (e.g. loan or credit card) to clear the overdraft and never go overdrawn again.
    • Blackberrycurved
    • By Blackberrycurved 7th Dec 17, 6:24 PM
    • 56 Posts
    • 502 Thanks
    Blackberrycurved
    PeacefulWaters was that reply supposed to be helpful or were you just trying to be clever and smart. What a stupid reply... If people could earn more they Would. My man died 2 years ago so half of my income wiped out plus I’m still paying for the funeral. I work 48 hours a week. We live on next to nothing, I spend next to nothing except on food and I make most of my clothes. Do you really think that people are on this forum because they are stupid maybe a few but mostly circumstances go and be clever some place else. And if you can’t answer the question mine was about Halifax banking don’t post. Certainly don’t post glib answers.
    Blackberry Curved debt free 2017 number 17 £0/£11,000
    Save for Christmas 2018 number? £1 /£365
    1% challenge number ? £0/£110
    • AliceBanned
    • By AliceBanned 7th Dec 17, 6:29 PM
    • 2,352 Posts
    • 1,099 Thanks
    AliceBanned
    I don't know what do do I used to pay about £34 in charges this month i have been charge £90 £2ish a day plus £30 I don't know what to do £90 and I'll fall into a black hole my overdraft is £1800 but I'm on £820 into it but it will be more each month what do I do?
    Originally posted by Blackberrycurved

    Have you spoken to Halifax? Or a debt charity? Especially given your circumstances mentioned in your next post - sounds like you need some help with this. Did Halifax send you a letter asking you to speak to them if you need to discuss the new charges - they may be able to give you a grace period - worth speaking to them at least.


    Those charges are astronomical. :-(
    DFW - goal December 2019

    _________________________
    • YorkshireBoy
    • By YorkshireBoy 7th Dec 17, 6:59 PM
    • 29,610 Posts
    • 17,459 Thanks
    YorkshireBoy
    PeacefulWaters was that reply supposed to be helpful or were you just trying to be clever and smart. What a stupid reply...
    Originally posted by Blackberrycurved
    I've just taken a brief look at your posting history. It appears you're already doing, or have been doing, at least two of the three. So who gave you that "stupid" idea? Maybe the people on the DFW board? Did you verbally assault them too?

    Seems you've now upped your hours from the 36 you were doing in April? (That's earning more isn't it?)

    Did you get some of the debts on loans or a credit card?...as you were looking into it? (That's restructuring isn't it?)

    How did you get the overdraft down from "always at least £2K over" to a much better £820 at the moment? You must have adopted one or more of the above options? Did you think it "stupid" at the time? Do you think it "stupid" now?

    Do you really want some help? Because that poster can deliver it, and has done for many over the years. I suspect you'll regret your choice of words.
    Last edited by YorkshireBoy; 07-12-2017 at 7:02 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,346Posts Today

8,115Users online

Martin's Twitter