Has Halifax broken its student promise?

bigwigtom

I am a student just finished my first year of study. I have asked Halifax twice about this, and both times I have been told the maximum the bank will offer anyone in their first year is £1750 and that is what I currently have, and therefore no more. I specifically went with a Halifax Student account after reading on MSE that it was the best deal (offered the largest overdraft) so I feel very let down by the misleading marketing. If it was my own credit score that was stopping me getting the full £3000 then I would accept that gracefully, but the fact is that Halifax will not offer any student more than £1750 limit in their first year of study.

MrsManda

I got £1k immediately after opening my account. I asked about getting it increased ~January and got refused. As I didn't need the money I didn't bother pushing it. Recently I spoke to my branch about increasing the OD and was told I couldn't until I started my second year. However I called the Halifax customer service line and asked if I could increase my OD to 2.5k. The operator first said I couldn't but when I asked why, she checked my account and asked if it was a student account. I pointed out that yes it was a student account, not just a current account. After checking that I'd put in regular payments my OD increase got approved. The whole process took about 10minutes but if I hadn't asked why I wouldn't have got it. It made me wonder whether upto that point, the customer service staff I'd spoken to had bothered to check that I had a student account rather than a current account - without a salary I can fully understand why they wouldn't want to give me a large OD with an ordinary account.

Just thought it was worth mentioning - Calling them rather than going into the branch seems to be more useful and make sure they realise it's a student account.

bigwigtom

That's strange - both times I have asked has been over the phone and they have always put me on hold and checked with another department. I have always been declined any increase above £1750, and the reason both times was that only £1750 was allowed as a first year student. They knew I was a student as I told them it was a student account at the start of the call. Perhaps there is a secondary process for student accounts which the agents are not following. I would be interested to hear if anyone has had any luck when they have asked in branch?

Normally I would complain but I need the overdraft and I'm not keen to risk loosing the existing overdraft facility. Because of this I will have to use more expensive forms of credit (ie. credit card)

christinacheney

I'm a post grad student and have had this account for a year, i got £500 initially and asked for more (to go in an ISA!) but was declined despite fine credit, regular payments in and a credit balance! they said i would get the full £3000 by the end of the year, so today i called and was told i could have £1000! i challenged this and was told the 'you only get £1750' line (even though they weren't even giving me that!) and when i told them about the spokesperson saying that isn't the case they were a bit lost for words!

Eventually the man i spoke to went to the underwriters and came back saying it is true you can have more but they don't give it (what?!?) as they advise that it's best to have gradual increaces to prevent getting in too much debt early....to which i replied... thanks, but i'm not too keen on taking finacial advice from a company that's gone bankrupt and had to be bailed out..!! eventually they agreed to £2000...

Mr23

I have been lucky enough to get a £3,000 overdraft but got this for last year, things might be different now! A few months back my girlfriend got hers increased from £500 to £1,000 just by asking at the branch (she didn't want any more than that).

Debra_Keable

Hi my son is starting his third year at Uni with his overdraft from Halifax. Great the first year £1000, only £750 the second year. Went in for this year and was told limit has been reached there is no more. when asked why was told account has not been used for 2 months (because there was no money in it) and therefore would need to go through head office. Phoned them and no, but can appeal this. Phone this number, 3 attempts and hanging on phones for 15mins each time and not getting any where. Asked other banks will not take you on as with the Halifax already and can only have one. Great have to pay overdraft before you can join another bank. appalling when they are still advertising the £3000. My son can prove he has money , has no debts, no loans (student one of course) no bank charges etc but does not qualify. What a con!!!

starlightbay

My friend got £2500 for his 1st year.
I only got £500.

mangadarkogirl

I was told when trying to extend my overdraft I'd need to have regular income going in as well as my student bursary. My 1st year overdraft was 1k and I got it upto 1.5K but not without lots of bother about it.

The C.S advisor also told me there is a limit per year. And the 3K only applies when you're in your last year. Seems like there's conflicting information everywhere.

I'm about to 're-new my overdraft. Something else they don't advertise you have to do.

Daeheryn

I was given £1,750 in my first year and told that was the maximum, which was fine by me, I managed to muddle through. They raised it to £2,500 in second year, and £3,000 in third year - however I did have to re-apply for my overdraft each year and renew it. They were more than happy to throw money at me, including a credit card (which thankfully I refused at the time!). Being young and not knowing anything about money management, it was a dangerous trap to fall into.

The problem is, once you're using your £3,000 overdraft, it's very very hard to get back out of it, which is the reason I'm in so much trouble with debt today. I'd warn students to be very careful with it, I know it's really easy to use it up, but if there's ANY way you can avoid it, do - HBOS won't be at all sympathetic to you once you're no longer a student...

bigwigtom

Well I called them today and asked if I could increase my overdraft from £1750 (ideally to £3000) and to be fair to them, they did explain that whilst they wouldn't do it over the phone, they might do it in branch (as the branch would be able to appeal the decision). I guess they figure most students would rather lie in bed and can't be bothered with the hassle of getting to a branch! It's pretty obvious the banks are changing their minds about how they handle student finances (they want their custom but don't want to take on the credit risk!)

There just seems to be something very underhand about student accounts. You are always made to feel like they are doing you a big favour (which you will later be made to pay for) and you always have to beg them for the overdraft that is promised in the window. There are times they have asked what I want the money for. :beer: It feels like asking your mum and dad for pocket money. :mad: As with all these things, we can't actually determine what we will be offered (based on credit scoring) until we've signed the agreement, and by then it's already on our credit records (i.e. too late).