Has your overdraft been cancelled?

worried_jim

spelmanp1 wrote: »

We have a £1000 overdraft with Halifax. It has been removed without any correspondence to us. I paid £200 in the other day to cover some direct debts and couldn’t understand why they were returned. I’m supposed to be going on holiday in 29 days and have paid for my holiday but won’t be able to go if this is not sorted. We have 2 wages going in every month and I can’t understand why they have done this to without discussing it with us. I am absolutely distraught. Does anyone have any advice. My husband has to go into work late as he has been on the phone to them for 2 hours, no result so far. I’ve been waiting for an hour and they haven’t called back. I cannot believe that they have done this to us and that it is actually allowed.

Mate, afrter 9 years I'm guessing the OP has got all the answers they need and the lending criteria may have changed somewhat since 2009.

Question77

I recived a letter telling me they where either reducing or removing mine can't remember which was some years ago. But basically it was a routine thing apprently they just went over what I was earning and outgoings and they just kept the overdraft the same and it stayed. Not sure why they did not send a letter or at least you should have recived a message on online banking.

spelmanp1

What do you mean??

Drp8713

spelmanp1 wrote: »

We have a £1000 overdraft with Halifax. It has been removed without any correspondence to us. I paid £200 in the other day to cover some direct debts and couldn’t understand why they were returned. I’m supposed to be going on holiday in 29 days and have paid for my holiday but won’t be able to go if this is not sorted. We have 2 wages going in every month and I can’t understand why they have done this to without discussing it with us. I am absolutely distraught. Does anyone have any advice. My husband has to go into work late as he has been on the phone to them for 2 hours, no result so far. I’ve been waiting for an hour and they haven’t called back. I cannot believe that they have done this to us and that it is actually allowed.

It is allowed, they don't have to offer the facility.

Do you always use the overdraft? Or have you used more and more of it recently?

Maybe they are worried about the risk of you defaulting on it and removed it.

If you have two wages coming in why are you reliant on debt to go on holiday? Can you really afford the holiday?

Overdrafts are usually an expensive way to borrow, could you apply for a credit card instead? That way you get up to 56 days interest free if you pay in full.

eskbanker

spelmanp1 wrote: »

We have a £1000 overdraft with Halifax. It has been removed without any correspondence to us. I paid £200 in the other day to cover some direct debts and couldn’t understand why they were returned. I’m supposed to be going on holiday in 29 days and have paid for my holiday but won’t be able to go if this is not sorted. We have 2 wages going in every month and I can’t understand why they have done this to without discussing it with us. I am absolutely distraught. Does anyone have any advice. My husband has to go into work late as he has been on the phone to them for 2 hours, no result so far. I’ve been waiting for an hour and they haven’t called back. I cannot believe that they have done this to us and that it is actually allowed.

They can do it and it is allowed - as per the Ts & Cs, overdrafts are repayable on demand, as they're intended to be used for short-term cashflow management rather than long-term debt.

However, they should have notified you, so something would appear to have gone wrong somewhere and highlighting this to them may buy some time to sort out how to pay it back....

spelmanp1

I’m not relying on the debt to go on holiday but the fact it has been taken of us suddenly without communication is unfare.

worried_jim

spelmanp1 wrote: »

What do you mean??

This thread is from a banking situation caused by the credit crunch in 2008, the thread is from 2009, banks decreased customers unused overdrafts so they appeared to not have as much money loaned out. You have randomly googled Halifax overdraft found this and reopened an old thread. If you start a new one you'll probably get much more current and up to date advice.

spelmanp1

They have now reinstated it and are going to compensate us. Thank you for your reply.

enthusiasticsaver

Overdrafts are repayable on demand but they should have given you some warning. I suggest you look at paying it off. Expensive way of borrowing unless it is free.

Tallaght

There seems to be a 'cull' with uk banks regarding overdrafts and cancelling them.