Halifax overdraft

YorkshireBoy

unphased wrote: »

Thats not quite correct. Its £1.00 per day for agreed o/d up to £2500. It then rises to £2.00 per day. If you have an unnarranged o/d (you borrow without permission) its a staggering £5 per day!!!

I think it's correct in the context in which it was written, ie OP currently has a £4,500 facility which looks (at least at the moment) like it's being reduced to £2,000 at review.

If their balance exceeds this (and it will, with the information posted so far) then once the new facility is implemented the charges will indeed be £5 per day.

YorkshireBoy

unphased wrote: »

Thats horrendous for an overdraft. Never seen anything like that before.

I actually thought it was par for the course these days. It's ridiculously low rates such as those on the old Moneyback account that make it appear expensive.

Its almost as bad as a credit card.

Since both are a form of revolving credit facility (or at least should be!), I'd expect them to be similar.

unphased

It seems, then, if 19.5% is par for the course for new overdrafts, I need to look at a loan to pay it off at a more reasonable 9.9% as offerd by Egg. Agreed? Even the reduced 15.9% for qualifying account holders (which I would be) is still a rip-off in my view. 1.5% bank base rate announced today.

YorkshireBoy

unphased wrote: »

It seems, then, if 19.5% is par for the course for new overdrafts, I need to look at a loan to pay it off at a more reasonable 9.9% as offerd by Egg. Agreed?

It depends on your O/D usage throughout the month. For example, if you dip in and out (even heavy amounts, but for very short periods*) very occasionally, then the O/D may be cheaper (in terms of interest charged) than a loan at a lower APR.

And, of course, there's always the danger of running the O/D up again once cleared with the loan!

* Restructuring your monthly outgoings, ie timing, may help here.

aae1872

The change in the Halifax money back acount is a complete rip off!! Everyone should complain. I have contacted the Financial Ombudsman on 0845 080 1800 as the change could cost me up to £31 per month for an overdraft of just a few quid. I will no longer see any benefit from the cash back as I always go slightly in to the overdraft. The cash back was the only perk of giving the Halifax every penny I earn plus a mortgage, house insurance and a Visa!! The bank is really going to capitalise on those people who are 'middle of the road' customers and don't go too much in to the overdraft with this blanket £1 a day charge. I spoke to the bank and they said it was to 'simplify' the charges, surely all it is is unfair.

The Financial Ombudsman agreed to write a letter of complaint on my behalf. If we all did this it would at least show the bank that we are not just going to roll over and play dog on this!

Sharon87

aae1872 wrote: »

The change in the Halifax money back acount is a complete rip off!! Everyone should complain. I have contacted the Financial Ombudsman on 0845 080 1800 as the change could cost me up to £31 per month for an overdraft of just a few quid. I will no longer see any benefit from the cash back as I always go slightly in to the overdraft. The cash back was the only perk of giving the Halifax every penny I earn plus a mortgage, house insurance and a Visa!! The bank is really going to capitalise on those people who are 'middle of the road' customers and don't go too much in to the overdraft with this blanket £1 a day charge. I spoke to the bank and they said it was to 'simplify' the charges, surely all it is is unfair.

The Financial Ombudsman agreed to write a letter of complaint on my behalf. If we all did this it would at least show the bank that we are not just going to roll over and play dog on this!

Here's the non 0845 number

Either this one:
02079641000
OR
020 79640500

I think it's a rip off too. I only have a £500 overdraft, so if I go into that I'd be charged a fortune compared to now. The most interest I've ever charged is about 85p. The annoying thing is I may need my overdraft for a deposit for my next rented place if I don't get a job soon!

emweaver

Alliance and Leicster charge 50p a day, is this charge going to become standard, I wonder!?

M_Thomson

emweaver wrote: »

Alliance and Leicster charge 50p a day, is this charge going to become standard, I wonder!?

Up to a maximum of £5 a month.

M_Thomson

aae1872 wrote: »

The change in the Halifax money back acount is a complete rip off!! Everyone should complain. I have contacted the Financial Ombudsman on 0845 080 1800 as the change could cost me up to £31 per month for an overdraft of just a few quid. I will no longer see any benefit from the cash back as I always go slightly in to the overdraft. The cash back was the only perk of giving the Halifax every penny I earn plus a mortgage, house insurance and a Visa!! The bank is really going to capitalise on those people who are 'middle of the road' customers and don't go too much in to the overdraft with this blanket £1 a day charge. I spoke to the bank and they said it was to 'simplify' the charges, surely all it is is unfair.

The Financial Ombudsman agreed to write a letter of complaint on my behalf. If we all did this it would at least show the bank that we are not just going to roll over and play dog on this!

I don't think it was the financial ombudsman you spoke too. They will not even look at a complaint until you exhaust the banks complaints procedures.

YorkshireBoy

M_Thomson wrote: »

I don't think it was the financial ombudsman you spoke too. They will not even look at a complaint until you exhaust the banks complaints procedures.

They will, or at least their 'frontline' staff will. They've previously written a letter to a provider on my behalf (whilst I was still within the 8 week period).

But you're quite correct they won't get too involved (ie, at an adjudication level) until the 8 week period has elapsed.