Halifax £1 per day charge for using authorised overdraft? Will others follow?

apt

There is no human right to an overdraft and bank overdrafts are and have always been repayable on demand. So petitioning or whinging to the government is a waste of time in my opinion. Those who cannot get rid of their overdraft should be looking to see if they can get a better deal elsewhere before the Halifax charges go up in December.

GiMac

opinions4u wrote: »

Unfortunately this charging structure benefits those who currently pay the £28 and £35 fees for failing to manage their accounts. These charges are abolished.

Those costs are effectively passed on to those operating their accounts within authorised overdraft limits.

That's basically the same conclusion I came to!!!

So they are basically rewarding the people who are worst at managing their financial affairs and those of us who are managing our affairs within their agreed credit criteria are paying for it.

This just seems plainly illogical.

Yogicat_2

Opinions 4U - I think you need to take a tea break, we live in a democracy, everyone is entitled to an opinion, and to complain if they wish to!

Yogicat

sabretoothtigger

The £35 fees have been outlawed anyway, they had to change policy to something. Many banks now just charge £12 instead and I guess this gives some slight advantage.

They have some other account that is £12 a month instead of the £31 this might cost I think and that has more favourable terms?


Everyone can complain but O4u is just saying its closer to whinging, its no great injustice and certainly not a matter for regulators. In fact its the opposite, they are reacting to previous regulation apparently. Might be a crap deal but thats the free market

GiMac

sabretoothtigger wrote: »

You may be better off taking out a personal loan or transferring the debt to a credit card deal.
Alot of them give special offers when you first setup a card, they are relying on you just spending on the card but if sensible it can save you money, worth a look

Thanks for your advice, but unfortunately I don't think that this is an option. I have a clean credit history, never even been late paying a utility bill or mobile phone bill EVER, let alone a credit card or loan payment and have never exceeded my facilities, even when times have been tight. But each credit card I have has reduced or removed the facility, since I went self employed 15m ago. So I think the chances of me getting a loan or new credit card would be slim. I have spent the last 18 months trying to reduce my debt, but everytime I seem to get a little bit ahead the banks move the goalposts and knock me back again. I'm beginning to wonder if it's worth trying anymore.:rolleyes:

sabretoothtigger

I think it might be worth asking their opinion of your credit worth. Because you have had an account with them, I would expect some sensible reasoning based on the fact they have right in front of them a record of your income and outgoings. They should have their own internal credit score on you basically.

Might be they are crap but I would just ask them what products they can offer. Im pretty certain they would love the idea of 'selling' you an upgrade to that paid for current account.
It shouldnt be hard to get, they are always trying to sell something over the phone and this is one of those types of products, in your case you likely would be better off taking it up rather then being squeezed by these new charges which dont suit you at all like you say.

Obviously check the small print or search on this forum even, I havent checked myself

jiminy678

ive received the same letter today. what a rip off, does anyone know why its such short notice, my overdraft was automatically increased from 350 to 1200 just 2 months ago. i wouldnt of agreed to it if i'd known this was on the horizon. just another sneaky way of the banks ripping off loyal customers i suppose:mad:

Leanne200

jiminy678 wrote: »

ive received the same letter today. what a rip off, does anyone know why its such short notice, my overdraft was automatically increased from 350 to 1200 just 2 months ago. i wouldnt of agreed to it if i'd known this was on the horizon. just another sneaky way of the banks ripping off loyal customers i suppose:mad:

The bank giving you more credit that you didn't ask is irresponsible I agree, but it's what you do with it that makes all the difference to how much you are charged. They do write to you to let you know, or a message in your online account if you are paper free. You also can ring them to tell them you don't want it and they cancel it off.


On another note does anyone know if Halifax make you stay out of your overdraft for a certain length of time before you are allowed to cancel it altogether??
I am considering a short term loan to pay it off, but someone told me you have to stay in the Green for 3 months!

sabretoothtigger

They cant force you to take their money :laugh:
Overdraft is short term, if it was a loan what you mention might be more likely but you can cancel overdraft any time you like, as can they with no notice

jiminy678

when i took the the overdraft the charges were reasonable and easy to pay off in a few months. if the letter i received today was sent when i was given the overdraft i would of turned it down. with the previous charges i could pay it off gradually and the ammount i pay for the overdraft would reduce but now it will take me 3 times as long to pay off. this new system will just plunge more people into the red and create more problems for everyone in the long run. a short term loan is probably a cheaper solution, but i certainly wont be getting from halifux