Halifax Reward

opinions4u

More2LifeThanMoneyWorries wrote: »

seen as though i am also entitled to an opinion i'll say it again, it's complete boll*cks, they are a bunch of greedy !!!!!!!s who I put in the same category as armed ( in this case with the power to do whatever the hell they like, no matter how much they've been bailed-out themselves ) robbers!!!!

They were probably bailed out as a result of charging idiots like you stupidly low overdraft rates.

LongTermLurker

More2LifeThanMoneyWorries wrote: »

wonder why they are transfering the 'moneyback' customers first, nothing to do with the low overdraft rate is it :rolleyes:

complete boll**cks, a bunch of greedy !!!!!!!s who i put in the same category as armed robbers:mad:

How much cashback did you get for using your debit card? The £60pa you're going to be paid would be equivalent to £6000 debits pa @ 1% or £12000 debits pa @ 0.5% - if you're making that many payments on a debit card each year you ought to be looking at getting a credit card instead and you'd benefit from better protection

I've checked my interest accrued since June and only once did they pay me over £5, so I reckon I'll still be better off with the flat £5 credit per month - anyone who holds a lot of money in their current account will, of course, be worse off but it's horses for courses.

LongTermLurker

More2LifeThanMoneyWorries wrote: »

yeah thanks opinions4u will be doing that hopefully

seen as though i am also entitled to an opinion i'll say it again, it's complete boll*cks, they are a bunch of greedy !!!!!!!s who I put in the same category as armed ( in this case with the power to do whatever the hell they like, no matter how much they've been bailed-out themselves ) robbers!!!!

Oh dear - you'll go far acting like that.

If we're lucky, anyway :rolleyes:

(didn't know they gave overdrafts to 12 year olds - obviously where they went wrong...)

More2LifeThanMoneyWorries

oh no the cyber bullies are here, please do hurt me with your nasty comments please, please!!!!!!!!!!!!

Fedz

You're bound to get people that are of the opinion I'm alright Jack 'cos they don't live within their OD and others who live within their OD that are going to have to pay dearly.

Personally I have the opinion of banks shouldn't be doing this as it's morally unfair given the position the economy's in and people who can least afford this are going to be the hardest hit and banks know this so are in effect making the situation worse and harder for people, they profiteer of peoples misery.

Banks can make severe mismanagement with lending and when the going gets tough they get tax payers money to the tune of billions to bail them out and the government happily does this but, when it's customers / tax payers make the very same mistake you don't see the government jumping in to help the individual.

Treat like with like and the government should pull the rug from under failing banks and swipe the smug face of 'em, that's exactly what banks do to customers

Talk about profiteering from people's misery :rolleyes:

Mikeyorks

Interesting that the £5 net monthly is construed as 'interest' .... as 20% savings tax is pre-deducted. But it doesn't appear as though a non-taxpayer can register for 'gross' payment via R85.

All customers, irrespective of tax status, will be paid £5 net (£6.25 gross with 20% deducted) for funding their account with £1,000 a month.
Non-taxpayers will be able to reclaim the £1.25 already deducted via the usual HMRC forms (we will provide tax certificates for this purpose).

Which means such people will need to reclaim the tax element of £15pa after the end of the tax year, via R40. Can't really see HMRC wearing that for long as it's going to unnecessarily increase their workload (and the customer) for relatively trivial repayments.

bert&ernie

Mikeyorks wrote: »

Interesting that the £5 net monthly is construed as 'interest' .... as 20% savings tax is pre-deducted. But it doesn't appear as though a non-taxpayer can register for 'gross' payment via R85.



Which means such people will need to reclaim the tax element of £15pa after the end of the tax year, via R40. Can't really see HMRC wearing that for long as it's going to unnecessarily increase their workload (and the customer) for relatively trivial repayments.

I still dont understand how they can avoid quoting the overdraft charges as an APR. I know that the flat rate is 0%, but the fees should still form part of an APR calculation. As I have said earlier, how can the customer be expected to compare the cost of borrowing against the products offered by other providers?

YorkshireBoy

Mikeyorks wrote: »

Interesting that the £5 net monthly is construed as 'interest' .... as 20% savings tax is pre-deducted.

LTSB did a similar thing a couple of years ago with their 'save the change' promotion launch Mike. They paid up to £50 per month in 'matched benefit' for the first 2 months, and then taxed it.

That was borderline taxable as 'cashback' IMHO, but if you look at HMRC rules this Halifax payment is definitely taxable because it continues, ie it's not a one-off payment.

YorkshireBoy

bert&ernie wrote: »

I still dont understand how they can avoid quoting the overdraft charges as an APR. I know that the flat rate is 0%, but the fees should still form part of an APR calculation.

Conventional overdraft interest is quoted as an EAR, not an APR. As such, they are allowed to exclude fees.

Typical wording (from Yorkshire Bank)...

†EAR (Effective Annual Rate). The Effective Annual Rate is used to express the cost of borrowing on current accounts. The EAR takes account of the rate of interest charged, the frequency it is levied to accounts and compounding of interest. It does not include overdraft fees and is variable.

http://www.ybonline.co.uk/personal/current-accounts/interest-rates-and-charges/

As I have said earlier, how can the customer be expected to compare the cost of borrowing against the products offered by other providers?

Agreed. Might they be challenged on it? And who by...the OFT, BBA, FSA?

bert&ernie

YorkshireBoy wrote: »

Conventional overdraft interest is quoted as an EAR, not an APR. As such, they are allowed to exclude fees.

Typical wording (from Yorkshire Bank)...Agreed. Might they be challenged on it? And who by...the OFT, BBA, FSA?

Thanks for that.

I think the OFT might have something to say about it. I think its important that consumers have standardised way to compare the cost of borrowing. By charging in this way, it seems that they are effectively circumventing the AER rules.

I have to say that my professional expertise is more focused in credit cards. If a credit card product were designed to work in a similar way, it would have to be marketed with an eye-watering APR.