Halifax removed overdraft with no notice

beanzine

Hi


Looking for advice re an overdraft removal:


I have a bog standard Halifax current account with an overdraft of £750. Have had this overdraft for years, am always into it, sometime right up to the hilt (as I was this month). It was not due for renewal until much later in the year.


This morning at 8.15am I received a call from my bank (Halifax) “Collections” Dept asking me how I would like to repay my “unauthorised overdraft” of £705. I said that I had no idea of this overdraft being removed, had had no notification of the intention to remove it, that I couldnt' pay it back immediately and that I would like some time to discuss this with the current account dept in order to try to either keep the overdraft or arrange to pay it back over a few months (after she told me I couldn't discuss anything with her as she only collected). She agreed that I would have 30 days to look into this with the bank.




I then received a call at 4.00pm from the “Collections at Head Office”, who were aware of the earlier call, but wanted repayment immediately. I felt their approach somewhat aggressive (ie they kept interrupting me, the chap's tone was really horrible etc until I demanded that he listen to me and allow me to speak). They said they wanted to know how I wanted to repay: I, again, said I had had no notice of this and found their approach to this innappropraite as I had done nothing wrong. (It had been their overnight decision to remove the overdraft for no reason and without notice).


I asked that they replace the overdraft and I would reduce it down by about £150 a month (or more) until it was gone (I can afford to pay the £750 back otherwise I wouldnt have had the need for it in the first place). They said they could not arrange that without me agreeing to an “arrangement to pay”, which I refused as I know that this would go against my credit record for years. I am anxious to protect my credit record which is just about to become very good after some issues about six years back. After going round in circles, and me getting increasingly angry at their tone and total inflexibility, they agreed that I could have ten days to go to my branch and re-apply for my overdraft. I feel this is somewhat pointless as they are obviously going to refuse, otherwise why remove it in the first place.


I understand that the bank have the right to ask for the money back and that it is their money, but I feel that they are being totally inflexible in offering me only two ways of paying: all of it now or an arrangement to pay, both if which are unreasonable. I am offering to pay it back at a fairly rapid rate (5 months or less) but they are not accepting this. I feel I am being backed into a corner and being punished for doing nothing wrong apart from actually having an overdraft..an overdraft that I pay for and which I arranged with them earlier in the year.


I wonder if anyone has any concrete advice re any rights I have here: I am offering to pay the overdraft back, but in such a way to protect my future credit record. They are refusing. If I go to the branch to get my overdraft back, they will refuse the overdraft surely, otherwise why would they have removed it at all.


Any advice re my rights are much appreciated

Lokolo

As you said yourself, they can take it away at any point. You are a risky customer, they don't want more risk than what they want so they've taken precautions. They've given your solutions, don't like them? Find another way to pay.

Unfortuantely not the best of situations but its their rules.

jonesMUFCforever

How would an Arrangement to pay affect your credit record?
If you pay £150 a month for 6 months (to cover interest) it will be repaid.

I would also suggest opening a new bank account.

beanzine

I wouldnt say I am a risky customer, havng had a clean credit record for nearly six years, but thanks for your reply. I still think I have rights as I am offering to pay it, just not in a way that affects my credit record. I feel I have that right. (Am still a bit angry, I know I may be naive here...)

An "Arrangement to Pay" a type of credit agreement that is agreed between you and a creditor when you cannot pay back the amount they want each month but you agree to pay them so much each month. It goes against your credit record for six years after you clear the amount owed.

Still feel I have rights here as am offering to pay.....am I just grumbling????

lolababy

Write a stiff letter of complaint. Point out that you have been a loyal customer and that you are prepared to pay off your overdraft but in instalments. Id point out the way staff spoke to you . Tell them you will be posting on money expert in order to inform people about the way your account has been handled.

CLAPTON

You are correct .. any arrangement to pay may appear on your credit record and is bad news.

Write a formal letter of complain and say its unreasonable to withdraw it at such short notice.

However, always being in your OD is frankly madness... you have just been throwing money away in interest for years and reducing your standard of living.

Doshamento

beanzine wrote: »

They said they could not arrange that without me agreeing to an “arrangement to pay”, which I refused as I know that this would go against my credit record for years.

You need to clarify with them on how any 'arrangement to pay' will be recorded on your credit report?

opinions4u

beanzine wrote: »

I have a bog standard Halifax current account with an overdraft of £750. Have had this overdraft for years, am always into it, sometime right up to the hilt (as I was this month). It was not due for renewal until much later in the year.

This morning at 8.15am I received a call from my bank (Halifax) “Collections” Dept asking me how I would like to repay my “unauthorised overdraft” of £705. I said that I had no idea of this overdraft being removed, had had no notification of the intention to remove it

Are you being totally honest? While any overdraft is repayable on demand I can guarantee you that:

1) You went over your limit - and got a letter warning you that the facility will be withdrawn if you didn't put it right.
2) You didn't bring it back under the limit within the timescale advised and therefore had the facility withdrawn.

If you didn't read the letter (online perhaps?) that's your look out.

I couldnt' pay it back immediately and that I would like some time to discuss this with the current account dept in order to try to either keep the overdraft or arrange to pay it back over a few months (after she told me I couldn't discuss anything with her as she only collected). She agreed that I would have 30 days to look into this with the bank.

Time to do some sums and come up with a proposal to clear it. The £150 x 6 months suggestion above for example. Then once it's cleared live off your own money and never rely on a bank overdraft again! Your world will be less stressed for it.

I then received a call at 4.00pm from the “Collections at Head Office”, who were aware of the earlier call, but wanted repayment immediately. I felt their approach somewhat aggressive (ie they kept interrupting me, the chap's tone was really horrible etc until I demanded that he listen to me and allow me to speak). They said they wanted to know how I wanted to repay: I, again, said I had had no notice of this and found their approach to this innappropraite as I had done nothing wrong. (It had been their overnight decision to remove the overdraft for no reason and without notice).

So you argued about their approach but made no logical proposal to them. While you might feel genuinely hard done to you know you went over your limit at some point in the recent past. That's why the limit was removed before the annual renewal.

I asked that they replace the overdraft and I would reduce it down by about £150 a month (or more) until it was gone (I can afford to pay the £750 back otherwise I wouldnt have had the need for it in the first place). They said they could not arrange that without me agreeing to an “arrangement to pay”, which I refused as I know that this would go against my credit record for years.

The alternative will be a default on your credit file which is worse.

they agreed that I could have ten days to go to my branch and re-apply for my overdraft. I feel this is somewhat pointless as they are obviously going to refuse, otherwise why remove it in the first place.

Probably right.

I understand that the bank have the right to ask for the money back and that it is their money, but I feel that they are being totally inflexible in offering me only two ways of paying: all of it now or an arrangement to pay, both if which are unreasonable. I am offering to pay it back at a fairly rapid rate (5 months or less) but they are not accepting this. I feel I am being backed into a corner and being punished for doing nothing wrong apart from actually having an overdraft..an overdraft that I pay for and which I arranged with them earlier in the year.

The main thrust of your complaint is that you are saying they had no reasonable grounds for doing this.

You need to ensure that an arrangement to pay (that you can afford) is in place before things get worse, then pursue the complaint. If you win they will have to correct your credit file.

You need to get them to clarify why the facility has been withdrawn and what warnings they gave you.

If you went outside your limit this would be grounds enough for them. And any arrangement to pay will rightly remain on your credit file.

But I think you'll have had a warning letter first that you didn't act on quick enough.

gliden

my friend works for them and has just adv me on your stmt should be a renewal date they are hardley renewing anyones even some of the staff... which is going to make a lot of people stuck that cant repay it immediately..

sutton111

Well my Mum and Dad opened there Ultimate Account last September they were given £100 OD about 3 weeks ago they checked on-line what they could have and it was £0 then about to days later and it had risen to ....... £1700!! :eek: :eek:

milfordmadness

Lokolo wrote: »

As you said yourself, they can take it away at any point. You are a risky customer, they don't want more risk than what they want so they've taken precautions. They've given your solutions, don't like them? Find another way to pay.

Unfortuantely not the best of situations but its their rules.

My god you're as subtle as a !!!!!! in a playground! The poor lass wnats some advice, not some smart ars comment that she and everyone else already knows!

If you've nothing constructive to say, why even bother?