Reduction in overdraft limit by Halifax

furry_tractor

Can anyone please offer me some advice as I have recieved a letter this morning from Halifax stating that in two weeks they will be reducing my overdraft limit from £1500 to £300. This is a problem for me as due to my financial circumstances (already been put on short time at work and due to be made redundant) I live month to month using the full capacity of the overdraft facility and the charges they will put on this will cripple me.

Any help or advice on how to tackle this would be appreciated.

AngelaSinclair

Hi there, that's a hell of alot for them to cut your overdraft by but sadly overdrafts are repayable on demand, that's part of the deal. It's something that I think we forget as we've gotten used to having these facilities open to us but now that the banks are struggling they seem to be tightening the reigns.

When Halifax did this to me with my student overdraft four years ago I begged for a month's grace so as I could try to sort something out. So try to get some more time, or try to get them to cut it by less.

I'm not good on advising how to get round this financially but perhaps some others here could help, or go to another part of the forums and find out the cheapest way you could borrow to cover the money you're losing. Don't do what I did and end up taking a loan with Halifax that I paid off as a graduate with £1500 or interest on it (I didn't use that month's grace very well!) I'm sure there are better options than that!

Good luck!

furry_tractor

thanks, i realise it is their right to do this but i wasnt aware they could demand it instantly. It doesnt make sense as with the overdraft i have now they are making money off me but the £300 limit is interest free...

Anyone with any other advice?

carolt2

Hi, you could try and ask the bank if they can compromise and gradually reduced the overdraft rather than cut it in one go. You could explain your circumstances.
For example next month reduced by £200 to £1300 and the same reduction every month.
Am not saying this would work but you could ask.


It will be in the terms and conditions that they can reduce or take away at any time.

claire0788

Hiya,

Halifax tried to reduce my overdraft from 3000 to 700 on the 23rd of Dec last year. I explained to them (in a panic and then calmly) that I couldnt pay 2300, nevermind right before christmas. They said there was nothing they could do until the underwriters had looked into my account. So what happened was they froze it instead ! They didnt take any notice of the information i provided them about how much i earned and my outgoings instead told me I HAD to pay 225 a month from 5th Jan 09. So i had roughly 10 direct debits bounce in my account which I got charged for from halifax and from a couple of the places I was meant to pay ! Nightmare ! They still havent taken the payments down which is kinda good because i have had to find the money so eventually I can get away from Halifax (they have been nothing but trouble the last 2 years).

Id advise you to pay any bills over the phone before the date Halifax want to change your overdraft. Then go and into a branch and explain your sitution, make sure you get the name of the person you are talking to and make sure they note all information on the system (also can cause problems is they dont). Try to arrange a payment plan with the underwriters that you can afford before they come up with a random amount. Let us know how you get on.

Extant

claire0788 wrote: »

Hiya,

Halifax tried to reduce my overdraft from 3000 to 700 on the 23rd of Dec last year. I explained to them (in a panic and then calmly) that I couldnt pay 2300, nevermind right before christmas. They said there was nothing they could do until the underwriters had looked into my account. So what happened was they froze it instead ! They didnt take any notice of the information i provided them about how much i earned and my outgoings instead told me I HAD to pay 225 a month from 5th Jan 09. So i had roughly 10 direct debits bounce in my account which I got charged for from halifax and from a couple of the places I was meant to pay ! Nightmare ! They still havent taken the payments down which is kinda good because i have had to find the money so eventually I can get away from Halifax (they have been nothing but trouble the last 2 years).

I think you should write a letter of complaint. Make sure to include something along the lines of:

"I believe your actions in this case are in clear breach of the FSA's outcome 1 of the Treating Customers Fairly initiative and, by my interpretation, outcome 6 as well."

It's probably 80% certain they'll sort that right out for you.

ladyrider260

This has happened to me with Halifax too. Seems like they're doing this across the board.
I'm lucky enough not to need it. Just as well as they didn't send me a letter to warn me, they just did it!

claire0788

BarclaysManager wrote: »

I think you should write a letter of complaint. Make sure to include something along the lines of:

"I believe your actions in this case are in clear breach of the FSA's outcome 1 of the Treating Customers Fairly initiative and, by my interpretation, outcome 6 as well."

It's probably 80% certain they'll sort that right out for you.

Ive just been paying it because they werent listening to me at all. I got my charges back after phoning a million and two times, I think they would just fob me off if I try to complain as it has been 7 months this has been going on.