Halifax Overdraft New Charges

Innocenti

YorkshireBoy wrote: »

Bills, ie utilities etc, are (largely) known in advance though, and as such can be budgeted for can't they? Re unexpected purchases such as your car exhaust example, then a credit card (ideally 0% on purchases for x months) will come in very handy.And you have agreed they can vary the account T&Cs with 30 days notice. Indeed, they issued a press release earlier this year (and wrote to customers I believe) clearly setting out their plans to migrate all customers to the new Reward structure "later in 2009". Ample notice to get out of your overdraft or make alternative arrangements?What consultation did you want/expect? An individual one or a 'vote' for all account holders?How long before NatWest move to a similar charge structure? Months?...a year? You can bet your bottom dollar it'll happen just as soon as the bank charges case finally ends.

I dont care if other banks bring it in, i dont have a an over draft with them. I dont use credit cards. I am not getting one purely for those one or two unexpected bills and I dont think you should be advocating me getting into debt with credit cards, how do you know I can get a 0% credit card? It is rather bad advice to hoitily suggest to people to get a credit card especially when you dont know peoples personal finances.

Consultation would be nice and abit more notice would have been nice to give me chance to pay it all back in managable lumps.

Why are you assuming that I got this supposed letter that was sent out "earlier in the year" cause I certainly dont remember seeing one and I take note of all my post especially if it is going to cost me money

I am glad you are apparently jumping with joy about this change coming in and from your high and mighty position you can point at us mere mortals with overdrafts and laugh your balls off.

YorkshireBoy

Innocenti wrote: »

I dont care if other banks bring it in, i dont have a an over draft with them.

You'll need one if Halifax call theirs in when you shift your banking elsewhere. Furthermore you'll need it quickly because overdrafts are repayable on demand.

I dont use credit cards. I am not getting one purely for those one or two unexpected bills and I dont think you should be advocating me getting into debt with credit cards, how do you know I can get a 0% credit card? It is rather bad advice to hoitily suggest to people to get a credit card especially when you dont know peoples personal finances.

Nonsense! I was trying to give you a budgeting tool, not encourage you to get (further) into debt.

Why are you assuming that I got this supposed letter that was sent out "earlier in the year"...

I'm not assuming anything. If you read my post again the "letter" bit was a 'belief', rather than a statement of fact.

I am glad you are apparently jumping with joy about this change coming in and from your high and mighty position you can point at us mere mortals with overdrafts and laugh your balls off.

You really are defensive aren't you, and not receptive to any kind of help and advice, eg the credit card for budgeting purposes.

Anyway, best of luck with the situation.

manic_cow

T39andcounting wrote: »

So basically as I read it, Halifax will be penalising anyone on a low-medium income (those who can't get a max £2500 overdraft) and penalising those who manage their money and don't go into the unauthorised overdraft. But anyone with a £2500 overdraft (ie those with higher income jobs and good credit) will pay less, and anyone who occasionally dips into unauthorised overdrafts will not be put off.

Sorry, but you're talking rubbish here. You don't need to be a high earner to get a £2500 overdraft. Up until last year or so the banks were happy to gradually increase people's overdrafts over time to ridiculous levels whether they wanted it or not. My mum has a £3000 overdraft with halifax and the most she's ever earnt in a year was around £15K before tax. I've had an account with halifax for about 6 years as well and they've gradually increased my overdraft from about £250 to £1050, without me ever asking them to.

I can understand people being annoyed by this, but at the end of the day it's not your money and considering that earlier this year some of the banks were just withdrawing overdrafts completely without notice quite frankly, it could've been worse.

I'm sure that any of you who want help trying to stop living in your overdrafts will get it if you post asking for help, but making posts moaning about how unfair it is that the bank is making it harder for you to stay in debt isn't going to win anyone over. Especially when the majority of people on this board have probably had to cope with debt and obviously would now view it as a negative thing.

Too many people (myself included) are guilty of viewing an overdraft as part of their money. It's not, and now that in some cases it'll be as expensive (or more expensive) than having a credit card, hopefully it'll give some people the push they need to get out of debt.

Pimpslider

Yeah, I got a letter this weekend (9/10/09). This is ridiculous and total daylight robbery by Halifax. I called them to confirm it all.

I have 3 current accounts and an ISA with the Halifax. I have a current account which is permanently in the red, due the size of the overdraft they slowly let me increase. I used to pay around £11 a month for this, but now it will be £30!!

I took the overdraft increases over a number of years under the pretense that this kind of thing would not happen. After being a customer of Halifax for over 22 years I feel this to be insulting to the regular guy who pays in money on a regular basis.

In another account, which also has an over draft, I do have over £1000 put in per month, so will get the £5 rebate, but will still get charged around £22 per month for that one (previously around £9).

So, my fees (from December 6th) will now go up from around £20 to £52 per month!!!

I will be consolidating my current loan (which is NOT with the Halifax) and clearing my overdrafts. I found the best loan deals were at Asda and Sainsburys.

opinions4u

Pimpslider wrote: »

Yeah, I got a letter this weekend (9/10/09). This is ridiculous and total daylight robbery by Halifax.

The reason they've done it is because others, including the owner of this site, argued that their £28 and £35 fees were daylight robbery. Those fees are being abolished.

I have 3 current accounts and an ISA with the Halifax. I have a current account which is permanently in the red, due the size of the overdraft they slowly let me increase. I used to pay around £11 a month for this, but now it will be £30!!

Would it be worth moving funds from the ISA to clear your overdraft?

I took the overdraft increases over a number of years under the pretense that this kind of thing would not happen.

Who pretended it wouldn't happen?

After being a customer of Halifax for over 22 years I feel this to be insulting to the regular guy who pays in money on a regular basis.

But as you have relied on your overdraft for so long you clearly withdraw more than you pay in on a regular basis.

I will be consolidating my current loan (which is NOT with the Halifax) and clearing my overdrafts. I found the best loan deals were at Asda and Sainsburys.

A sensible move. Clear the overdrafts, get your debt down by repaying the loan (but don't keep on consolidating over the next few months) and up your income by that £5 a month.

By taking action you are making the changes turn a profit for you.

MDE

I went in to Halifax yesterday, and they tried to convince me to change to the ultimate reward for a £300 interest free overdraft, but at a cost of £12.50 per month. I declined.
They asked me why I wanted to move banks. The guy I spoke to clearly agreed with me, although obviously couldn't say so.
What did come from the conversation was the realisation that if you go 1p overdrawn, for 1 day, you will be charged £1. This is an interest rate of 1000% the guy in the branch told me. Maybe Halifax should set up in Zimbabwe!

I think the issue here is the brackets for charging are all wrong. I have no issue with paying to borrow money (be it loan, credit card, or overdraft) but I do have a major problem with being charged the same amount to borrow 1p as I would be to borrow £2499!

YorkshireBoy

MDE wrote: »

I think the issue here is the brackets for charging are all wrong.

I think the "issue" is more one of clarity.

The OFT and bank charges lobby wanted clarity, and that's what they've now got. You borrow money...any money...you pay a fixed amount per day. It doesn't get any clearer than that.

No second guessing EARs, no working out what the £28 charge was for and what the £35 charge was for, no wondering when these fees would be debited to the account, no wading through reams of paper on T&Cs and 'fees and charges'.

You borrow...you pay a pound a day.
You borrow a lot...you pay two quid a day.
You borrow when you shouldn't...you pay a fiver a day.

As I and many others were saying on these boards two or more years years ago...be careful what you wish for, because you just might get it.

MDE

But there is a big difference between borrowing 1p and £2499, but the rate is the same.

More brackets would still give clarity- £100, £500, £1000 etc.

Superbiatch

I was informed of this a few days back when I contacted Halifax as my employer had gone into administration and wages not gone in. They were completely useless and I had to scrape,steal and borrow from family just to cover my dd's due to go out. I am lucky enough to be in paid employment again, but must now go through claiming my wages back taking some 4-6 weeks (by that time I'll have been paid again by my new employer!).

Anyway this latest news about overdraft charges is concerning me, but I do wonder how long it will take before other banks follow suit??

In the meantime I will look into switching banks :rolleyes:

MDE

Superbiatch wrote: »

Anyway this latest news about overdraft charges is concerning me, but I do wonder how long it will take before other banks follow suit??

In the meantime I will look into switching banks :rolleyes:

I suspect bank charges will become commonplace, but not at this level, which could, for some people, equate to £31 per month for the account.

I suspect charges of perhaps £5 per month may become common, the differentiator will be what you get for that £5.