Changes to HBOS overdraft charges

gaylem_2

Hi everyone,
My hubby has just bn on the fone with Halifax re: them removing his overdraft facility without any warning, anyway,
one of the robots on the fone let it slip that on overdrafts
as of the 6th DECEMBER, THEY ARE CHARGING £1 PER DAY :mad:
(wonder when they will inform us of this change...)

We've both bn customers all our lives are are so disgusted by the way they have treated us that we are now looking elsewhere.
Any suggestions of which bank to switch to, or are they all as bad as each other?!?

withnell

Been talked about for a long time - was first introduced on new accounts in Feb

Remember its £1 a day instead of interest and £5 a day unauthorised with none of those nasty "extra" charges

gaylem_2

Thank you for reply new to this forum thing.I've been appalled at the treatment hbos have strted with my hubby.Stopped his o/d no warning nothing then when phone them to find out the reasoning of it they cant tell him !! So frustrating got terms and conditions today and they agreed it doesnt make sense but they still want it back within 12 months or they are putting it over to debt management company!!!!! unbelievable

bristolleedsfan

gaylem wrote: »

Thank you for reply new to this forum thing.I've been appalled at the treatment hbos have strted with my hubby.Stopped his o/d no warning nothing then when phone them to find out the reasoning of it they cant tell him !! So frustrating got terms and conditions today and they agreed it doesnt make sense but they still want it back within 12 months or they are putting it over to debt management company!!!!! unbelievable

Overdrafts are re-payable on demand so your hubby is lucky that hes been allowed to pay it back over 12 months.

rb10

gaylem wrote: »

as of the 6th DECEMBER, THEY ARE CHARGING £1 PER DAY :mad:
(wonder when they will inform us of this change...)

Remember that, as long as you have the Reward current account, you'll get £5 paid to you for each month that you pay £1k into the account. So even if you are overdrawn for 5 days per month, there's effectively no charge. Keep out of your overdraft, and you get the full £5.

They'll inform you about all this by sending you a new copy of your T&Cs in October.

Another good change is that when calculating whether you need to pay an overdraft fee on any particular day, they'll include any uncleared cheques in your balance. So you effectively have access to cheques as soon as you pay them in.

Laurenbelle

gaylem wrote: »

one of the robots on the fone let it slip that on overdrafts

With an attitude like that i am not suprised the treatment has been appaling!

BlondBoy

Anyone know if they'll re-credit check the accounts when they change the branding/T&Cs on the account?

Had a standard current account for a while with them. Credit report not looking quite as rosy these days. Never been above a £100 approved overdraft on the account for the entire three years I've had it. but would hate for them to close if if re-examining made them a little unhappy.

jambosans

BlondBoy wrote: »

Anyone know if they'll re-credit check the accounts when they change the branding/T&Cs on the account?

No, they are simply re-branding and slightly altering their current accounts.

Your overdraft on the other hand is normally reviewed annually, unless cause for concern causes them to review it earlier (i.e. due to poor account conduct).

The only reason HBOS would close your account (or more likely downgrade) is if you used the account inappropriately - e.g. ran up arrears, broke the terms and conditions, and obviously used it illegally (fraud, money laundering, etc.).

JoseChungsDoomsday

the question should be asked about when is this happening to LTSB accounts.. I've got a feeling that Lloyds wouldn't dare do this to their own customer base..

opinions4u

JoseChungsDoomsday wrote: »

the question should be asked about when is this happening to LTSB accounts.. I've got a feeling that Lloyds wouldn't dare do this to their own customer base..

What, pay them £5 a month for simply having a wage paid in to an account?

Nah, spose not.


Seriously though, think it through. Banks have access to a reduced level of funds to lend. This charging structure will, presumably, reduce customer demand for overdrafts. It's inspired. It may also be good for people in this country who seem to think spending beyond their means and living permanantly in their overdraft is a "normal" way to run their finances.

jambosans

JoseChungsDoomsday wrote: »

the question should be asked about when is this happening to LTSB accounts.. I've got a feeling that Lloyds wouldn't dare do this to their own customer base..

Well I'm assuming at some point they will; or replace the HBOS product range with their own; or an amalgamation of the two.

I agree with opinions4u, the Reward Current Account fee structure will force consumers to look at overdrafts and their financial health differently.