Stopping unwanted overdrafts being applied

larafroglady

Years ago I was in a financial mess which I eventually sorted out. As a result I am very cautious about the level of debt I allow myself to accrue. I am a model customer at the Halifax and this now seems to be causing me a problem. For the last 3 years the halifax have increased my overdraft up in February to amounts that I could never afford to repay. The first year they put it up to £1250 and I phoned them up and explained that I did not want that kind of temptation being put in front of me and could they put a note on my account to not increasemt overdraft again above £200. Last year they put it up to £4000 and I phoned them up and reduced it again and again explained the importance of not having that kind of money availble to me. I phoned my telephone banking last week to be notified I had over £1000 available to me as they had done it for a third year running. I have called them and asked them to arrange something that means I do not have to cancel this every year. Can anyone suggest what else I can do to ensure they do not keep giving me excessive overdraft limits that I could not afford to repay should my job be lost etc. in these uncertain times.

LittleMissAspie

Close the account and open one with a better bank. Make sure you tell them why you closed it.

[Deleted User]

Open an easycash (basic bank) account with the Halifax online. Have any credits paid into that account and Halifax will soon decrease the overdraft limit on your existing current account. Keep some money in the current account in case electron cards aren't accepted somewhere (electron comes with the easycash account).

ShelfStacker_3

LittleMissAspie wrote: »

Close the account and open one with a better bank. Make sure you tell them why you closed it.

Agree with this. Halifax are being ridiculous, especially when people right up to the limits in overdrafts they can't repay are a huge problem in the UK.

rb10

I think that whilst the suggestions above could resolve the issue, opening an Easycash just complicates things, which is fine if you have the time, but I personally wouldn't want to do that just to get a lower overdraft limit. And changing banks, well, that might help, but firstly, it's a good account that you've got, and secondly, the new bank could well do the same thing.

A fairly sure way to resolve it is to contact Customer Relations, and raise it as a complaint. This way, they have to follow the complaints procedure and resolve it. See http://www.halifax.co.uk/contactus/howtocomplain.asp for how to make a complaint. I would be very surprised if this didn't have a satisfactory outcome.

rh41

larafroglady wrote: »

Years ago I was in a financial mess which I eventually sorted out. As a result I am very cautious about the level of debt I allow myself to accrue. I am a model customer at the Halifax and this now seems to be causing me a problem. For the last 3 years the halifax have increased my overdraft up in February to amounts that I could never afford to repay. The first year they put it up to £1250 and I phoned them up and explained that I did not want that kind of temptation being put in front of me and could they put a note on my account to not increasemt overdraft again above £200. Last year they put it up to £4000 and I phoned them up and reduced it again and again explained the importance of not having that kind of money availble to me. I phoned my telephone banking last week to be notified I had over £1000 available to me as they had done it for a third year running. I have called them and asked them to arrange something that means I do not have to cancel this every year. Can anyone suggest what else I can do to ensure they do not keep giving me excessive overdraft limits that I could not afford to repay should my job be lost etc. in these uncertain times.

Without being one of those awkward rude ones on here. You dont have to spend it, or if your like me will temptation get the better of you?

ShelfStacker_3

rh41 wrote: »

Without being one of those awkward rude ones on here. You dont have to spend it, or if your like me will temptation get the better of you?

I'd object to that. She's perfectly within her rights to not have a lending facility, on whatever grounds she chooses, and for Halifax to keep forcing one on her despite her categorically explaining she doesn't want one is irresponsible - especially given her reasons for doing so.

It's not like she's one of the really annoying ones who spent thousands of pounds and are now having an "oh sh*t" moment and blaming the bank for lending to them in the first place - she's actively trying to not get credit, and Halifax are making her take it.

rh41

ShelfStacker wrote: »

I'd object to that. She's perfectly within her rights to not have a lending facility, on whatever grounds she chooses, and for Halifax to keep forcing one on her despite her categorically explaining she doesn't want one is irresponsible - especially given her reasons for doing so.

It's not like she's one of the really annoying ones who spent thousands of pounds and are now having an "oh sh*t" moment and blaming the bank for lending to them in the first place - she's actively trying to not get credit, and Halifax are making her take it.

But my point is Halifax arent making her taking it, its just available to her should the op wish to use i. I take the 2nd point very true.

Mikeyorks

Get your Halifax account(s) online.

Not only is it easier to monitor that way .... but you can also reduce the overdraft figure online. But don't negate it completely ..... it's useful to have a smallish backstop to guard against any error on your part

ShelfStacker_3

rh41 wrote: »

But my point is Halifax arent making her taking it, its just available to her should the op wish to use i. I take the 2nd point very true.

And she doesn't want it available for fear she'd be tempted to take it, and like I say that she's explained that to Halifax and they're still chucking huge overdraft limits at her is ridiculous. It's entirely up to her.