A question for any Halifax Bank of Scotland customers out there

PROLIANT

Hi guy's, I received a letter from the Halifax regarding my overdraft facility, I have had the overdraft since the first day of opening the account and have managed my account very well, no bounced DD's or Cheques, never over my overdraft and very rarely in it to be honest, the overdraft is pretty small as I only need it for occasional cash flow and emergencies. I have used it twice in the last six months and not the full amount either.
Basically this is what the Halifax has said to me;

Expiry of an Arranged Overdraft

I am writing to remind you that your overdraft limit of up to £100 ends on 12th February 2009.

If you would like to continue this arrangement you can apply for a new overdraft Online at https://www.halifax.co.uk/online, call our 24 hour telephone banking service on 08457 20 30 40 or visit your local branch. We can usually give you an instant decision.

Why? Has anybody had this type of letter before?

Thanks in advance.

Mr P

Kavanne

I got this in Aug, it's entitled 'Bank Account Overdraft Expiry' :

I am writing to tell you that your review date for your existing overdraft limit is on 23rd August 2008.
From this date your overdraft limit will be £'same as it was already' based on our knowledge of your account. If you would like to change your overdraft limit because your circumstances have changed, we will be happy to review it at any time. You can apply Online at www.halifax.co.uk/online, over the phone on 08457 203040 or at any branch. We can usually give you an instant decision. In order to maintain an authorised overdraft you must pay your salary or other regular credit into your account.

I'd reapply for it, or try to increase by £50. Everytime you change your OD it resets the 12 month count. What does your preassessment say on online banking?

PROLIANT

Kavanne wrote: »

I got this in Aug, it's entitled 'Bank Account Overdraft Expiry' : I'd reapply for it, or try to increase by £50. Everytime you change your OD it resets the 12 month count. What does your preassessment say on online banking?

£0, I applied and they said no, without a reason which I think is crap because I was told when opening the account that as long as the account is managed well - which it is, I will be given better facilities etc.
Evidently not. :rolleyes:

ShelfStacker_3

Everyone's tightening up lending I'm afraid - especially on overdrafts, as they're quite nasty in the wrong hands. Same goes for the annual reviews.

PROLIANT

ShelfStacker wrote: »

Everyone's tightening up lending I'm afraid - especially on overdrafts, as they're quite nasty in the wrong hands. Same goes for the annual reviews.

Well why don’t they try clamping down on those who take the pish instead of jumping on people like me who manage their finances extremely well?
If after an appeal letter is fired off to them and they choose to remain stubborn then the account will be closed and I will move my business to another bank.

sutton111

This totally amazes me Proliant as Cif only the other week was given a £3600 OD from the Halifax. Crazy really!

Mikeyorks

Surprises me as well.

We have a joint a/c with Halifax and the OH a singleton account, which is solely to keep her out of the joint account for housekeeping! Much easier to xfer a lump sum across and leave her to mismanage it ... which she cheerfully does. Nothing of real significance ... but she will often go into the red for a few days .. by up to £100.

We had 'overdraft renewal' letters towards the back end of 2008, for both accounts, simply confirming the existing overdrafts would be carried forward. But this thread has just prompted me to look at the 'guaranteed overdraft' available on demand on her account .... which is £8,500!

In the isolation of her current account - that makes absolutely no sense. So I can only assume that the potential overdraft figure is more from the fact that there is a string of fixed rate ISAs / Guaranteed Saver / Regular Saver etc etc ... also showing on her Portfolio?

PROLIANT wrote:

I applied and they said no

........ you'll likely get a better response by popping into your local Branch?

Extant

sutton111 wrote: »

This totally amazes me Proliant as Cif only the other week was given a £3600 OD from the Halifax. Crazy really!

They're "moving the scorecard": they're changing their lending policy and trying to restrict their exposure to bad or doubtful debts. They won't necessarily wish to massively decrease their lending, however - that's bad for PR. They'll aim to decrease it slightly, but also to shift the remaining credit into the hands of the more trustworthy customers.

The end result is the age old adage: banks only want to give money to those who already have it. It's these people that can borrow more, and likely would be encouraged to do so by retail leaders encouraging the upselling of loans: making sure that any store card, credit card, etc. debt is consolidated, too.

Extant

Mikeyorks wrote: »

In the isolation of her current account - that makes absolutely no sense. So I can only assume that the potential overdraft figure is more from the fact that there is a string of fixed rate ISAs / Guaranteed Saver / Regular Saver etc etc ... also showing on her Portfolio?

Oh yes. If they have balances, the fact that the right to offset could be exercised makes them valuable assets in turns of bumping up internal scores or limits, etc. They're likely enough to override the slight overdraft your wife has each month, which probably isn't even seen as a risk if it's below a couple of hundred of pounds.

sutton111

BarclaysManager wrote: »

They're "moving the scorecard": they're changing their lending policy and trying to restrict their exposure to bad or doubtful debts. They won't necessarily wish to massively decrease their lending, however - that's bad for PR. They'll aim to decrease it slightly, but also to shift the remaining credit into the hands of the more trustworthy customers.

The end result is the age old adage: banks only want to give money to those who already have it. It's these people that can borrow more, and likely would be encouraged to do so by retail leaders encouraging the upselling of loans: making sure that any store card, credit card, etc. debt is consolidated, too.

That makes no sense to what Halifax are doing though. Take my point, a person OD who i know has risen from £750 to £3600. Thats a riduclas increase, for no reason what so ever. But they won't renew a £100 OD for a loyal, trustworthy customer like Proliant. It just doesn't make any sense.

Extant

sutton111 wrote: »

That makes no sense to what Halifax are doing as my point in question has risen from £750 to £3600. Thats riduclas increase for no reason what so ever. But they won't renew a £100 OD for a loyal, trustworthy customer like provilent

It's based on how much they "trust" each of these people. Like every other bank, HBoS is going to be under steady and increasing pressure to maintain their consumer lending, and not to succumb to the tightening of the credit markets, a big cause of our current situation.

However, the government isn't going to be concerned with individual cases, they will be concerned with the bigger picture: how many billions do they lend out.

So, say Halifax has to maintain their overdraft lending, and it's £10bn in total. They don't want to lose any of it, or as little as possible: so they take the lending from the bottom third, and give it to the top third. The end result is still £10bn of lending, but with significantly less risk involved. Because they've just given a bunch of people with money more money when they don't need it and are unlikely to use it. Government is happy, HBoS is happy.