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

bengal-stripe

nickmack wrote: »

From my point of view, a charge should not be made if the transaction is declined.

So, how often should a bank decline? Should customers be allowed to run their accounts in "eni, meni, muh" fashion?

What if all the banks adopted a “three strikes and you’re out” policy? Maybe not close the account all together, but withdraw facilities, debit cards, direct debits, standing orders etc. So some customers would end up with an account, which accepts monies going in and gives out cash via a service card, but nothing else; rather like a Post Office Benefits Account.

I believe, in this case, all of a sudden, everybody was able to check their balances.

ragingbass

I've had charges like this from Halifax in the past and it's the amount that really sticks in the throat! Was down to things coming in and going out at the wrong time, but there you go, it was my problem.

To OP, firstly you could try giving Halifax a call rather than going into the branch and pleading your case. You could also consider moving your account elsewhere. Don't be surprised if the charges stand though.

Secondly, you should consider paying off the overdraft and moving to a basic bank account that doesn't allow you to go into the red at all.

nickmack

bengal-stripe wrote: »

So, how often should a bank decline?

A good question. It's not even consistent or clear amongst institutions.

We're not talking about offline transactions here, where the bank has to process, even if it takes the account holder over a limit, it's online transactions or even cash withdrawls where the available balance is checked in real time.

If you've got a basic account, the answer is every time. There is no possibility to have any credit.

If you have a 'regular' bank account, banks usually have an 'invisible' amount they will allow you, beyond any given limit before the transaction is denied. Again, this can vary on the source of the transaction, your previous account behaviour, whether you have an overdraft etc etc.

So it's a confusion for customers who have a set limit and then find they can exceed it a little bit more in some circumstances.

My take is the bank like to do this because they deem the risk to be low of not getting the money back, but have the added bonus of slapping a charge on top for the limit being exceeded if they allow it through.

However, if a transaction is declined in any circumstances, I don't see any justification for a charge.

Maybe the answer is to ensure that a limit is finite and all (online) transactions that take the account holder beyond this are refused (with no charge of course), unless it's a direct debit (which could be assumed to be paying essential bills)

willo65

bunnygirl007 wrote: »

I thought this forum was for people to discuss claiming back bank charges not to receive lectures on how stupid they have been and get told off about messing up their overdraft.

We all make mistakes, non of us are perfect and yes i agree we have a responsibility but the banks do too. They could quite easily trip the button that prevents your DD card being used once you hit your limit but they don't - no they just let you carry on - why? becasue every time you make a transaction they charge you £25. If they didn't make this charge you can sure as hell bet they would be tripping that switch the very second you hit your limit!

So don't tell us what we already know, we know we've messed up, what we're on here for is help and advice and answers to our questions not lectures - that doesn't achieve anything. :mad:

Its a forum, if only one side of the argument is required then don't use a forum - open a webpage or post a blog.

willo65

kam,

I think as you have reclaimed charge sbefore then asking the bank manager for a refund is not going to produce a refund because they will make the point that after your past history of charges you should be well aware of what charges are for on your account and what causes them to happen.

Frontera2

Difficult one..

Most banks have what's known as an "unadvised limit" which is an amount by which they will let you go over your agreed limit. HSBC, for example, call this an "informal overdraft request".

You may think why am I allowed to spend on my account when it's maxed out.. well, lets imagine you were driving in the middle of nowhere on a cold night and were very very low on petrol so pulled into a garage. Would you want the payment to be allowed through, exceeding your limit, so you could get home or would you rather it be stopped and thus leaving you stranded?

The point I'm trying to make is that for some people, in an emergency, the ability to exceed your overdraft limit can be very useful which is why the banks allow it - apart from the fact that it rakes in tons of cash too!

crazyfj

I think the bank is equally as responbile as the customer. if they authorize one fair enough you get a charge, if they authorize 5 or 6 the same day to me its telling the bank there is a cash flow problem and they should be responsible lenders and stop the card.

if people cannot afford it the first place then the bank should'nt get that person into further debt.