Halifax - allowed to go over overdraft then penalised again and again and again..

BlueIsTheColour

Am not sure that the issue here is what the spending was for, I think its because the OP is relying on the bank to control what they can and can't spend, and that really isn't a bank's job, yes floor limits are in place so some transactions are automatically authorised and some are not, but there is an expectation from the bank that the user will manage their finances in accordance with their agreement, in this case the overdraft limit. By going over the limit, they are entitled to make a charge, as their T&Cs will state, whether or not making so many is right could be debated for hours on end am sure, an emotive subject such as this one will always provoke "enthusiastic" replies in both camps.....

If I was the OP, I would attempt to reason with the manager of the branch, but I would be expecting in the back of my mind that they would say I should have known I was overdrawn and therefore not used my card, how successful this would be in a reclaim is anyones guess, but as charges cant be recaimed currently, we're not likely to find out yet a while.

This is only my opinion I might add, I am in no way judging the OP at all, how can anyone do that unless they have walked in their shoes?

rd150978

Hi Kam

First things first, people want advice on what to do about their specific problems here, not berating or judging for how they have used the card in the first place. Kam, don't bother listening to prejudicial supposition, you want facts. Firstly, most banks have what they call an online / offline system, which means there is a difference in how transactions are processed, if a transaction is made, and the merchant is online, then they process the transaction "live" and the bank will either allow or decline it dependant on funds available. If the merchant processes it "offlie" or later, then by law the bank has to process the transaction regardless of what funds are available. Sad but true. So it is indeed on the merchant and not the bank.

Hope this helps!

rd150978

Hi Kam

First things first, people want advice on what to do about their specific problems here, not berating or judging for how they have used the card in the first place.

Kam, don't bother listening to prejudicial supposition, you want facts. Firstly, most banks have what they call an online / offline system, which means there is a difference in how transactions are processed, if a transaction is made, and the merchant is "online", then they process the transaction "live" and the bank will either allow or decline it dependant on funds available. If the merchant processes it "offline" or in other words later due to whatever reason, then by law the bank has to process the transaction regardless of what funds are available. Sad but true. So it is indeed on the merchant and not the bank.

Hope this helps!

tightarsey

Hi Kam,

Understand where your coming from - if you had gone to the cash machine and tried to take out the cash you would have been refused, yet make an online payment that is successful (in terms of the retailer) and not actually having the funds available means you get charged, not once but many times.
I think it depends on your record with Halifax, they will be able to see from previous transactions/charges if you are aware of these types of charges and if they can see that you probably are then their sympathy is going to be severely lacking.
The current case going through the courts is about whether these type of charges are used to cover their costs of you going overdrawn, or are set artificially high in order to act as some sort of deterrent, in which case they could be classed as unjustified charges, they are in theory to cover the costs of your mistake.
Your not in a good position unless you can pay back the overdraft, which by the sound of it isn't the case. Overdrafts can be recalled at any time, and threatening to claim charges they could make things difficult for you.
If you can pay off the overdraft and pay fees. Then put in a claim for the fees back. They may settle and ask you to close the account.

You are always in a better/stronger position to negotiate if you pay the fees first , then ask for them back or claim them back. Just because you have paid them, doesn't make it more likely they won't give them you back, not paying them makes it less likely.

Take out a basic bank account with the co-op, these type of accounts prevent you going overdrawn but give you simple banking facilities.

Alternatively, be pleasant and offer to pay half - if you don't want the hassle, I think in this case , take it as experience and move forward - the banks are a hard bunch nowadays - life is too short as they say.

Hope this helps

helb2112

Hi Kam i absolutely sympathise with you.I too have incured about £400 of charges.I pay money into my account then use in shops etc.If there was't enough money in the account i would rather the card be declined than to incure a charge. I think halifax are an awful bank. Chin up

ffcforever

Hi, I am currently trying to sort of a problem with Halifax for my son!

His account had a £100 overdraft facility - which he reached and using a debit card to pay for relatively small amounts for food generally less than £5 - did not decline the card let it go through and then charged him £35 for the pleasure and £28 for a letter!

This happened on numerous occasions where the amount in excess of his overdraft was £59.23 and the charges on the account totalled £518.00!

Not once did they stop his card or ask him to put his account in order!

This activity is immoral by the bank - yes my son should have not used the account without putting it back in order but surely Halifax should have refused the transactions.

Young people are already moving away from using Banks and you can see why - if they don't use bank to save pouring billions of pounds into the system is a waste of time as they will still be reliant on each other and not individual savers!

This ruling by the FSA needs to happen now to sort these greedy !!!!!!s out who continually hide behind the Data Protection Act to ignore their responsibilty to their customers and their parents - because they are people who do care!

ILW

ffcforever wrote: »

in order!

This activity is immoral by the bank - yes my son should have not used the account without putting it back in order but surely Halifax should have refused the transactions.

Is it not immoral of your son to be buying things using other peoples money without their permission?
In some instances this would be called theft.
Be careful when taking the moral high ground.

helb2112

ILW wrote: »

Is it not immoral of your son to be buying things using other peoples money without their permission?
In some instances this would be called theft.
Be careful when taking the moral high ground.

In my opiion this is some what harsh. Obviously this ladies son didn't mean to as you call it ' use other peoples money'. The point is surely if there is NOT enough money in the account the card should be declined instead of charging people

ILW

helb2112 wrote: »

In my opiion this is some what harsh. Obviously this ladies son didn't mean to as you call it ' use other peoples money'. The point is surely if there is NOT enough money in the account the card should be declined instead of charging people

I cannot help but think that people need to take a little more responsbilty for their own actions. Today it is not difficult to check the state of a bank account. I agree that the penalties can be harsh BUT why do many people seem to blame others. It it not a banks job to decide when and how you use a card, that is down to the user. ( I am assuming the OPs son is an adult, if not then he should not be let loose with a bank account)

nickmack

helb2112 wrote: »

The point is surely if there is NOT enough money in the account the card should be declined instead of charging people

Some 'basic' accounts do have this behaviour. From my point of view, a charge should not be made if the transaction is declined. However, the banks seem to think they are providing a service by merely 'considering' whether a payment should be allowed.