Halifax & overdraft

alowery

Good morning. Our joint account with the Halifax has an od of £10k This has been in place for ages, we've never been over that limit but do run close to it alot of the time. I get paid £3.5k a month in to the account.

Last week they sent us an online document (which took us ages to realise was even there!) saying they are reducing the od to £2.5k as of 23rd Jan. Now this is a massive reduction. I've been to branch and they say its the underwriters so there is nothing they can do. The underwriters won't even take an objection in writing any more! (aparantly thats something thats just changed). The halifax won't let us add it to our mortgage even though we pass the credit score and have enough equity (they say we can't afford it even though I pointed out to them that the interest we're paying on the od is £130 ish a month and the extra payments on the mortgage would be less than that!!!!!!).

I've filed an official complaint with the halifax as recommended by my branch. But I've only got till friday to get it sorted or my wage will just go in and be eeaten up by the overdraft and nothing will get paid (mortgage bills etc etc) I've also got a one year old which is worrying me the most.

What can I do!? I'm really at the end of the road, its not like we couldn't afford the payments etc when the od is there, we've not struggled with it.

Please help.

Adam

Kavanne

Will halifax give you a loan?

You need to sort out another current account ASAP to have your wages paid into. Have you told your employer about this? They may need a certain amount of notice to pay your wages into a different account (I think 3 days for us)

alowery

I'm a director so it's kind of my money anyway, but yes I have an empty barclays account that I'm going to transfer my wage to. Also need to get barclays to change all my direct debits from the halifax account. do you think it could be worth going to the obudsman about this as I think its rather unfair putting someone in that much unauthorised debt so quickly.

Inactive

I think that you will be wasting your time, I am fairly sure that a bank can withdraw an overdraft at any time.

http://www.thesite.org/homelawandmoney/money/creditanddebt/overdrafts

YorkshireBoy

Inactive wrote: »

I am fairly sure that a bank can withdraw an overdraft at any time.

...but they also have an obligation under the Banking Code to deal sympathetically with the customer, and placing him (potentially) £7,500 over his agreed limit with very little notice isn't being very sympathetic!

There must be a way out though...

Managed loan?
Structured removal of the facility, say £500 per month?

OP, whilst you could ask the FOS for advice now, you'll have to wait for the formal complaint to run it's course (up to 8 weeks) before they'll agree to look at your case in detail.

Inactive

YorkshireBoy wrote: »

...but they also have an obligation under the Banking Code to deal sympathetically with the customer, and placing him (potentially) £7,500 over his agreed limit with very little notice isn't being very sympathetic!

.

Fair comment, but using a large overdraft as a means of long term funding is always going to be risky.

As you suggest, an approved loan would seem the better option.;)

alowery

I'm really miffed with them as they really don't seem like that want to help me at all. I tried to add it on to our mortgage but the advisor on the phone said it'd make our payments too high (£60 odd more!) Its a case of computer says no even though the figures say yes..

Is it worth me going somewhere else for a secured loan of £10k (to pay off the full overdraft). Anyone recommend anywhere? I need to get something sorted asap as I really don't want to pay Halifax and rediculous interest charges for out of overdraft lending.

Kavanne

Have you asked halifax for an unsecured loan? have they said no already? try clicking on 'loans' at the top of this page for the cheapest loan deals.

MrsTinks

Unfortunately they have every right to do this... it does state it in your T&Cs that an OD is reviewed annually and can be withdrawn at x notice.
Using a £10k overdraft in the current climate I think it was a matter of time to be honest...
Unless you can get alternative credit - 0% credit card or loan - then it may be that you have little choice but to look at something like a DMP. However I would recommend you post a full statement of affairs over on the DFW board and let the guys and gals have a look and see how you can cut back and if there is likelyhood of solving this without affecting your credit ratings...

rb10

alowery wrote: »

Last week they sent us an online document (which took us ages to realise was even there!)

For future reference, they can send you an email when there's a new letter/statement.

When you log in, click My Paper-Free Documents on the left, followed by How We Notify You to put your email address in.

dallas123

Unfortunately this is fairly indicative of the banks 'attitude to recession at the moment - they've messed up big time and they know it. They are no longer private institutions, they are largely owned by the taxpayer thanks to the loans government keeps giving them. They've spent many years encouraging consumers into debt they cannot afford and when they finally realise that they're not going to get a lot of this money back they are withdrawing credit facilities and are desparately trying to claw back monies owed to them using bully boy tactics. Get your salary paid into another account so they can't seize it then open negotiations with them for repayment of the overdraft or consider a loan to pay it.