Halifax Student Account: Overdraft nonsense?

titusbramble

Hello,

With regards to Halifax student account - I quote:
"An interest-free overdraft of up to £3,000 (typical 0% EAR variable) for up to five years – plus an extra year after you graduate. "

I have such an account, only my interest-free overdraft goes up to £1,000. I graduated last year. Halifax failed to honour the above deal, so some months ago I had to go into the branch and tell them to extend the interest free limit until a full year after my date of graduation. (This little problem is documented on this site, since I made a similar post about it at the time).

As such, my account now says (correctly):

"Overdraft Review Date 31 Aug 2009"

So no problems right?...

Why then am I recently informed in a statement:
"Interest to be debited next month = 6.60" ?

Is it August 2009 already? Am I missing something? My overdraft is at -400/ish.
Are Halifax messing me about again?...

Unless it transpires that I have misunderstood something, I will conclude that Halifax are a bunch of jokers, and as soon as my debt with them is clear, my business with them is over.

Thanks for any info,

rb10

No, you have misunderstood.

The £3000 limit is the maximum overdraft limit that they are willing to give students. They may or may not choose to give you that limit, it may be lower. The Halifax Student Current Account web page makes this very clear:

An important note...
The amount of overdraft you get depends on your personal circumstances and whether you make regular payments into the account. You need to be aware that you may not get the full £3,000 overdraft. Halifax current accounts and services are offered subject to status.

The way Halifax work all their overdrafts is to only offer them for a year at a time. Each year, they will review the amount they are willing to offer you, and it may go up, down, or stay the same. This is what the 31st August 2009 refers to - so after this date your overdraft limit may change, depending on how you manage your account.

As for being charged interest on the overdraft, this probably means you are no longer showing as a student in their system. The reason for this could be that you have changed the length of your course, or that you did not give them a course end date when you originally applied for the account, right at the beginning. Go into a branch with some proof of the date that you graduated on, and they will be able to change that on the system. If you ask them to, they will also refund any interest debited.

MrsManda

There may have been a mistake with their computer system. However even though the website says the max overdraft is 3K for a max of 5 yrs plus 1 graduate year, they are not obliged to give it to you. It just means that this is the maximum you'd ever be entitled to.

You said you went to in to tell them to give you another year, I presume you mean you requested another year. Have you checked your statement? Halifax statements include a part which tells you the interest rates on each part of your account. You can access this at any time through their online service or at a cash point which does mini statements. If you received an interest free overdraft this will say 0%. In which case you will be able to claim the money back. However if your request for an interest free overdraft was not confirmed they will have begun to charge you interest and an interest rate will be on your statement.

If this is the case you need to go and speak to them. But remember they don't have to give you anything and are entitled to ask for everything back at any point in time. Review dates are just dates at which they will review the overdraft, they may do it at other times as well.

Hope it gets sorted for you soon

titusbramble

Hi thanks for lengthy replies.

I understand that the 3k limit is the maximum. Whether mine is 1k or 3k is a non-issue, because my overdraft is at -400 and has been for many weeks. (My limit is actually 1k).

"Statement: 1st January 2009
Overdraft Limit £1,000.00 Overdraft Review Date 31 Aug 2009Arranged overdraft / Students / Interest - free"

...

"2nd February 2009
Overdraft Limit £1,000.00 Overdraft Review Date 31 Aug 2009Arranged overdraft / Any amount / 1.50 % per month"

...

So as you can see, from one month to the next, all of a sudden that interest free deal disappeared.
I'll have to go into the branch to see Howard about this.
I am aware that the small print says "We can do whatever the hell we want", but I am displeased that the deal has apparently been altered ahead of the "Review Date 31 Aug 2009", without my knowledge.



---
"You said you went to in to tell them to give you another year, I presume you mean you requested another year."

What I mean by this is, when my 3 year course ended, they started charging interest on my overdraft - even though they knew full well the dates of my course. So I had to personally visit them to ask politely for the 'year after graduation' interest free side of the deal.

Lokolo

Ok so you're in your allowed overdraft limit but being charged interest whereas interest should be nill (0%) on a student account?

Go into branch, explain that you are being charged interest on your arranged overdraft and that it is a student account which means you get 0%, which isn't whats happening. Ask them if you can have the interest reclaimed and for interest not be charged in future.

Fire_Fox

titusbramble wrote: »

I understand that the 3k limit is the maximum. Whether mine is 1k or 3k is a non-issue, because my overdraft is at -400 and has been for many weeks. (My limit is actually 1k).

So as you can see, from one month to the next, all of a sudden that interest free deal disappeared.
I'll have to go into the branch to see Howard about this.
I am aware that the small print says "We can do whatever the hell we want", but I am displeased that the deal has apparently been altered ahead of the "Review Date 31 Aug 2009", without my knowledge.

If you haven't used the student account as your main acount - and it sounds like you haven't - Halifax can withdraw the overdraft facility completely at any time. Ditto they can remove the interest-free part of the overdraft at any time if you don't keep them fully informed of your circumstances, or do not manage your account as required in the terms and conditions (your part of "the deal").

titusbramble wrote: »

What I mean by this is, when my 3 year course ended, they started charging interest on my overdraft - even though they knew full well the dates of my course. So I had to personally visit them to ask politely for the 'year after graduation' interest free side of the deal.

Just because you give them an end date for your course several years ago does not mean you actually completed the course. It will clearly state in your terms and conditions what is required of you.

MrsManda

titusbramble wrote: »

Hi thanks for lengthy replies.
"Statement: 1st January 2009
Overdraft Limit £1,000.00 Overdraft Review Date 31 Aug 2009Arranged overdraft / Students / Interest - free"
"2nd February 2009
Overdraft Limit £1,000.00 Overdraft Review Date 31 Aug 2009Arranged overdraft / Any amount / 1.50 % per month"

That's odd, they appear to have changed your account into a standard current account (the replacement of student with any amount on your statement). February seems like an odd time to do it, I'd have thought if they were going to change it at all, it'd have been in July.
When you go to the branch, take evidence of your course dates so you can prove that your graduation date was last year and that you are eligible for year's graduate account. Do you have any evidence from when you went and saw them a few months ago?
Good luck, let us know how you go.

titusbramble

It's been worked out. Apparently their computer said that I graduated in January 2008, rather than July 2008. When it came 'round to 2009, my account automatically reverted to a normal current account, subject to interest payments.
The last time I went in, I did bring in proof of my graduation date, but for whatever reason this wasn't put into the computer. Anyway, it's all sorted now.