Halifax/ Bank of Scotland: a guide to account changes.

hubballi

I have been made redundant and my money runs out in Dec. It will be inevitable that I will go into my arranged overdraft. I cant affrod this so my only option is to change my bank.

Any banks out there that are not charging this ridiculous amount ?

opinions4u

hubballi wrote: »

I have been made redundant and my money runs out in Dec. It will be inevitable that I will go into my arranged overdraft.

Regardless of who your bank is, do you really think it's a wise move to use your overdraft to replace your income?

It doesn't have to be inevitable. It's an active choice on your part in difficult circumstances.

Cutting back on expenditure now and setting money aside is a starting point to avoid the situation.

I really don't think choosing to build up unsecured debt on a reduced income is a sensible approach.

I'd get over to Debt-free Wannabe and see what help you can get there.

rb10

hubballi wrote: »

I have been made redundant and my money runs out in Dec. It will be inevitable that I will go into my arranged overdraft. I cant affrod this so my only option is to change my bank.

Bear in mind that the arranged overdraft limit that you have now is based upon the fact that your bank knows that you have been employed, and have been paying a salary into the account. Once they realise that you no longer have an income, it is very likely that they will reduce your overdraft limit.

hubballi

opinions4u wrote: »

Regardless of who your bank is, do you really think it's a wise move to use your overdraft to replace your income?

It doesn't have to be inevitable. Cutting back on expenditure now and setting money aside is a starting point.

I really don't think choosing to build up unsecured debt on a reduced income is a sensible approach.

I'd get over to Debt-free Wannabe and see what help you can get there.

Thank you for the debt advice but building up debt isn't actually my plan. I do intend to get a job and I stated this incase I had to go into my overdraft.

My redundancy is being paid in installments which is why the bank think I am still employed.

opinions4u

hubballi wrote: »

Thank you for the debt advice but building up debt isn't actually my plan. I do intend to get a job and I stated this incase I had to go into my overdraft.

My redundancy is being paid in installments which is why the bank think I am still employed.

My apologies for not understanding what the word "inevitable" means.

You stated "It will be inevitable that I will go into my arranged overdraft". Tell me how else it should have been interpreted.

(And, genuinely, I hope your employment situation does improve rapidly - good luck).

nicnak66

ive just received my mailing through the post and im furious. ive been with bos for over 20 yrs. i have my mortgage with them, building and house insurance and 2 current accounts. as im part time my salary is not over £1000 a month. i just called them and i will be charged £1 a day for any overdraft. i use my overdraft £1000 most of the month so buggar that - will open an act elsewhere.

brody77

Just got my letter today & just off the phone to BoS.

I'm bricking it over this.

I left BoS a couple years ago to go elsewhere due to their bank charges, but the a/c is open as I can't afford to pay back the £750 overdraft.

I have a standing order paying in around £15 per month to cover interest, but I'm now getting told that I'll be hit with £31/£30 per month now instead?? And it's a daily charge, so am I supposed to just transfer over the full amount on payday??

According to the call centre, there's nothing I can do - I have an awful credit rating due to next directory screwing me over at the start of the year, and no way to pay off £750 by Dec 6th - I earn around £1050 a month and every penny is accounted for.

I know it sounds daft, but I'm sweating bigtime over this, don't know what to do.

He even said setting up an arrangement to pay off my overdraft wouldn't stop the charges - not that I can pay it off now with this additional expense.

So BoS are basically screwing everyone over to make up for all their mistakes over the past year or so?

jambosans

brody77 wrote: »

So BoS are basically screwing everyone over to make up for all their mistakes over the past year or so?

No.

The changes are a reaction to the likely loss of the Test Case on bank charges, and a subsequent ruling by the OFT that charges are, indeed, unfair under UTTCR. They have reduced unauthorised overdraft charges from £35 (max of 3 per day) and £28 to £5 per day. So if something goes down, to balance the books, something else has to go up: arranged overdraft charges.

I know they are unconnected, but you have sat on this overdraft for two years now, paying only a token £15 to cover interest. BoS could have quite easily withdrawn the facility and demanded repayment in full. Overdrafts are only meant to be short term, so you would need to have properly addressed this debt at some point. You've quite happily paid £15 a month for two years and paid nothing off, the change, although doubling your monthly fees, should make your realise that this overdraft cannot be kept forever.

There are two options: borrow or budget your way out of debt. If your credit rating is poor then it be difficult to get a loan, credit card, or another bank account but one of these may result in lower monthly charges. If those are not an option then you're going to have to budget, and the best place for advice and support would be over on Debt-Free Wannabe.

rb10

brody77 wrote: »

I earn around £1050 a month and every penny is accounted for.

In that case, make sure they change your account over to the Reward current account (not just Current Account, which it'll default to), and then you'll get £5 every month. I know you're still left with £25 of overdraft charges each month, but that's better than £30!

If you have a Halifax/BOS credit card, you can transfer your overdraft balance to that, so your account would then be at £0 (you would pay interest on the credit card, but that probably wouldn't come to £25/month).

littlewren

It's all very well for people to be giving advice to other people about not relying on their overdraft, and in an ideal world none of us would need to, but I am in the same boat and don't think these comments serve any purpose at all.

I am also relying on my overdraft following a disastrous attempt two years ago to move, finding I didn't have enough money to pay exorbitant solicitors bills and two house surveys. Everything collapsed just a week before contracts were due to be exchanged, leaving me severely out of pocket.

I would love to not have an overdraft and just manage on my income but this will take some time and I don't appreciate having to pay Halifax a ridiculous amount each month, with them just giving one month's notice. Maybe if they had said that 'in 12 month's time' they would be doing this, it would give a lot of people the opportunity to get their finances back on track.

Halifax have been very crafty on this one, especially making out it would suit everyone much better! My interest is usually around £4 per month and will jump to £30 per month. The only people that will benefit I suppose, are the people with massive overdrafts who would have been paying £30+ in interest.

Other than that, nobody else will benefit, but a lot of people will be worried sick about having to pay out the extra money per month.

And yes, I know that it is the Halifax's money, not mine, etc. etc. but what makes me really cross, as I say, is a lot of people's reactions on here, i.e. 'manage your finances' 'pop over to the Debt-Free Wannabe board' (why, will they find the £30 each month) etc. Yes, I know that board will help with daily money saving I'm sure, but the reality is that a lot of Halifax customers are now having to try and find this extra with just a few week's notice. Disgusting.