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

brody77

Posted this elsewhere, but think this is the best place for it;

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.


Don't know what to do!!

sabretoothtigger

https://www.bankofscotlandhalifax.co.uk/bankaccounts/bankaccountshome.asp


Change it into one of their other current accounts? Seems to me like you'd end up paying similar to what you are now, not that I would want to give out 15 a month in interest

Why didnt the call center suggest this, I dont know

opinions4u

sabretoothtigger wrote: »

Why didnt the call center suggest this, I dont know

Because the charging structure will apply to all accounts.

sabretoothtigger

True, the sneaky devils hid it under apply now tab

Try a zopa loan then maybe since its a small amount or I think maybe their credit card can be used to pay off a overdraft, not sure but some do this. They may give you a card even if others dont. The terms there may be more favourable because I believe they can still sell on the debt

Ultimate Reward Current Account application




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Product summary:

A great range of benefits designed to help make life easier for just £12.50 a month, including:
Here's a quick look at what you receive:

• The first £300 of any arranged overdraft is interest-free (0% EAR) . Typical 19.5% EAR variable on arranged overdrafts over £300. Whether you can have an overdraft and the amount will depend upon your personal circumstances at the time you apply for one. Any overdraft we agree is subject to status
• A range of account benefits, including peace-of-mind insurance cover, exclusive offers and great rates
• 2.50% AER (2.47% gross) variable interest on balances up to £2,500 and 0.10% AER/gross above that
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These changes affect the whole European banking industry. You'll find these new conditions at the end of the application. The features of the account will not be affected by these changes so there is no need for you to do anything differently.
In addition, from 6th December 2009, we'll be changing the Ultimate Reward Current Account terms and conditions, so you'll see a number of changes to the account.
From this date you will no longer receive 2.50% AER credit interest. Instead, we'll give you £5 each calendar month you pay �1,000 or more into your account.
From the same date we'll also be changing the fees you pay for using your overdraft. You'll no longer pay interest on an arranged or unarranged overdraft. Instead we'll charge you a daily fee for every day that you use your overdraft.

• If you use an arranged overdraft of up to £300, it's fee-free
• If you use an arranged overdraft over £300 and up to and including £2,500, we'll charge you £1 a day
• If you use an arranged overdraft of over £2,500, we'll charge you £2 a day
• If you use an unarranged overdraft, we'll charge you £5 a day

noh

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:

They have given nearly two months notice.
It's hardly a surprise it has been on the cards now for the best part of a year it was first discussed in December 2008.

http://news.bbc.co.uk/1/hi/business/7780551.stm

http://forums.moneysavingexpert.com/showthread.html?t=1351763

opinions4u

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.

You saw an increased recommended limit and requested it. I'd hazard a wild guess that they didn't increase your overdraft limit unilaterally.

i wouldnt of agreed to it if i'd known this was on the horizon.

It was widely reported in February that this was coming. Here's the press release.

While not overtly stated in that release it was reported at the time that the intention was to apply the new charging structure to all accounts later in the year.

smk77

brody77 wrote: »

Posted this elsewhere, but think this is the best place for it;

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.


Don't know what to do!!

THis is the situation that a lot a people on here don't get. You are in a situation that possibly was within your control but you didn't manage your account quite right or for unseen circumstances you had to use the overdraft. It was there and a rate of about 20% but you could afford to service the interest.

Next, the bank changes the way they do things that leaves you in a situation where you are having to pay a lot more interest each month just to service the charges and you can never actually pay off the original overdraft. Isn't this the exact same situation that left so many people claiming unfair charges?

My wife is slightly overdrawn each month but I'm just going to pay it off for her and take advantage of the £5 a month. Lucky us! But I feel for those like you who are going to get caught up in this disgusting change of rules!

cosmic_girl

My mum received a letter from BOS on Saturday telling her about the £1 a day charge for being in her overdraft. She doesn't use it a lot but seing as she is on a pension a potential £30 per month is a lot of money (as I'm sure it is to many). She's been with the Bank of Scotland all her life (she's now 67) but has now decided enough is enough so that's one customer that they have definately lost, I imagine that more may follow suit. They had a load of taxpayers money to bail them out and now they are screwing over their customers even more. I wonder where it will all end. Disgusting :mad::mad::mad:

doe808

I take it that if I leave BOS now, this wont invalidate any claim I have with them for unfair fees ?

Maybe best to just leave £1 in the account to be safe...

sabretoothtigger

How is your claim going right now? It wouldnt change anything to the claim , they are required to keep records anyway afaik

increase your overdraft limit unilaterally.

Much like credit cards they will increase the limit every year if the account it used alot, not sure if they lower it back down but I should think they will be doing this in future