Halifax Reward - 'Allowed overdraft'

firsttimestudent

Hello,

I just had a look at my Halifax Reward account. Clicking on the "Apply overdraft", in the past I'll see that I'm allowed an overdraft up something around £2000.

But for a few days now it shows up as £0. Is something wrong happening anywhere, or is it again something that flunctuates wildly?

Thanks.

opinions4u

It has always fluctuated wildly!

I'm slighlty puzzled as my maximum allowed limits actually disappeared a few months ago and went back to zero.

They did, however, renew my overdrafts at their existing levels last month, so it hasn't caused me a problem.

Milarky

Is there not some general (eg Banking Code rule) practice that would require them (Halifax) to notify you first, before changing (down) your pre-existing limit? I would have thought there was. I have no experience of bank overdraft reductions.

firsttimestudent

Thanks!

Milarky wrote: »

Is there not some general (eg Banking Code rule) practice that would require them (Halifax) to notify you first, before changing (down) your pre-existing limit? I would have thought there was. I have no experience of bank overdraft reductions.

What I meant was the 'pre-approved' limit - i.e. the amount of OD I can have, not the amount of OD I have. The amount hasn't changed, just that the amount I can have is flunctuating wildly!

never-in-doubt

The guaranteed amount changes daily and usually works dependant upon account standing. Make a lot of DD's and don't get charges and you'll see the guaranteed o/d will shoot up. Make a lot of purchases and it may decrease.

It is very unpredictable but the guaranteed amount doesn't affect you, it simply means if you upgrade to within that bracket then you'll be guaranteed acceptance.

never-in-doubt

Milarky wrote: »

Is there not some general (eg Banking Code rule) practice that would require them (Halifax) to notify you first, before changing (down) your pre-existing limit? I would have thought there was. I have no experience of bank overdraft reductions.

Noooo, they have to notify you but not before the reduction.... think about it, they notify you and then you go empty the account! So they can and do just reduce it then tell you, but they cannot reduce it to leave you in negative balance.

Very grey area but as far as the banking code goes, nothin to stop them asking (demanding) full repayment at any time they want, with or without notice. :beer:

This is the same for credit card limits, lots of people are getting their limit reduced and then getting declined (in a shop) cos the banks 'forgot' to tell the customer!