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

PaulJM

Extant wrote: »

Thirty pounds - or twenty five as it will be if you get the reward - is not a massive amount to pay for, say, one thousand five hundred of finance each month. On a credit card with a 2.5% minimum repayment, it'd be closer to forty.



It's not plain at all - that's a pretty serious accusation, and the Office of Fair Trading wouldn't take kindly to that practice at all. Halifax is far, far from stupid enough to increase overdrafts to earn fees, despite what the cynic in you might think.



And frankly, neither is your whiny attitude about a company changing their charging policy as they are entitled to do. If they were changing it to a hundred pounds a month, I'd understand - but twenty five pounds a month for short term, small balance lending is not a lot. Not a lot at all. Halifax's current rate of 19.5% even works out to be roughly the same on the amount given above.

The real attitude problem here is yours. You do indeed have a stupid borrowing attitude and you are hiding behind this "perfect world" excuse/nonsense. Unless you're eating stale bread and gruel every day, there is something you could cut from your monthly spend to reduce your overdraft every month.

Maybe your internet?

I'd love to live in that world, bud. I'm not a criminal, I want to be treated right. With your atitude, the banks will just get us back into the position we were. They're obviously perfect to you - let's them then get on with it eh?
You know what? You're not helping anyone by this unwaving, unquestioning attitude. Let's not whine about anything? Let's not question anyone? Let's let the authorities get on with it, and damn what happens to people.

And yes - first time in 20 years they offered me double my overdraft without me asking - 2 months before they do this. I'm afraid, if you don't see the irony, it's your internet that should be revoked.
Carry on with the adverts!:T

PaulJM

I can only echo my above response to you. You don't like the status quo questioned, do you?

opinions4u

PaulJM wrote: »

Ok, totally get your point here- there are better ways to fund a couple of hundred quid. As for paying £12.50 a month/£140 a year for these things - no chance - I doubt I pay anywhere near that for those things they offer.

Put your brain in gear and get off your soapbox. Work out how to beat them instead of sitting there whining about how nasty the big bad bank is.

£12.50 x 12 = £150 annual charge.

You get rebated £5.00 x 12 = £60.

Net charge is now £90.

You are compalining about being charged £20 a month for a modest overdraft. By taking the Ultimate Reward account you will save this as long as you are never more than £300 overdrawn. Assuming it's only 3 months your net charge now is only £30.

Annual Travel Cover - usually comes out around £50 a year for my family. You're now £20 up on the deal.

The Home Emergency Cover is a superb way to get a free plumber as well!! I used to pay £40 for this on my home insurance.

Breakdown cover, phone insurance, card protection and a few other bits and pieces increase the gain.

Extant

PaulJM wrote: »

I'd love to live in that world, bud. I'm not a criminal, I want to be treated right. With your atitude, the banks will just get us back into the position we were. They're obviously perfect to you - let's them then get on with it eh?

The position we were? Sorry to break it to you, bud, but the vast majority of customers are not overdrawn.

Or did you mean the economy? Well, you're upset over a course of action that a retail bank has taken. The economic problems were almost entirely caused by investment banking arms, or investment banks. Nothing to do with retail banking, which remains safe and profitable.

You are being treated right. They've increased their prices and given you fair and adequate warning of this. They've done nothing wrong, legally or morally, you're just (self admittedly) too lazy to do anything about your own situation. So, you naturally find it easier to blame the Halifax instead.

You know what? You're not helping anyone by this unwaving, unquestioning attitude. Let's not whine about anything? Let's not question anyone? Let's let the authorities get on with it, and damn what happens to people.

There's useful criticism and feedback and then there's whining about one's situation.

You're not helping yourself with your laziness. You'd rather whine than learn how to fix your situation.

And yes - first time in 20 years they offered me double my overdraft without me asking - 2 months before they do this. I'm afraid, if you don't see the irony, it's your internet that should be revoked.
Carry on with the adverts!:T

Rather than burying your head further in the sand, you might wish to learn how banks work. It'll give you a greater understanding of why your accusation is wrong.

I suggest you start with BASEL II and the OFT handbooks.

Extant

PaulJM wrote: »

I can only echo my above response to you. You don't like the status quo questioned, do you?

This isn't the status quo, it's a recently introduced change.

You're also making a fairly baseless accusation: I love changing the status quo. Hell, I even voted for Obama. The fact that I disagree with you doesn't change that.

You might try answering some of my points instead of cowering out like that.

PaulJM

Thanks for the clever book recommendations, bud.
It must be great to know so much about it.
Can I suggest that you then learn that;
1) everyone is allowed to express their opinion without your abuse (look at the post from oppinions4u - who admittedly had a little dig at me - I can take that - but they suggested positive ways around the situation)
2) Basically suggesting "stop moaning and get on with it" is a very bad suggestion for society as a whole - historically, a lot of bad things have happened by letting organisations get away with things.

Extant

PaulJM wrote: »

1) everyone is allowed to express their opinion without your abuse (look at the post from oppinions4u - who admittedly had a little dig at me - I can take that - but they suggested positive ways around the situation)

I haven't been abusive. I have been terse, curt at a very push; but again... disagreeing with you and acknowledging your self-admitted laziness is not being abusive.

2) Basically suggesting "stop moaning and get on with it" is a very bad suggestion for society as a whole - historically, a lot of bad things have happened by letting organisations get away with things.

I didn't suggest you "get on with it," I have fairly clearly told you that...

Halifax have decided on this structure, it will not change.
If you do not like it, you must either:
a) Move banks
b) Reduce your overdraft so as to not be charged

cric2k

I came on this site to specifically complain about the £1 per day charge. Extant is right in that they do provide a service and they can do whatever to hell they want with the charges for that service - fortunately there are competitors who don't treat their customers however to hell they want and I will now be moving to one of them.

I would like the flexibility to move a pound or two into my overdraft towards the end of the month without having to worry about being charged as high as 3,650,000% APR (yes thats how much the interest is if you are a penny overdrawn!).

If an individual on the street did business like this we'd call him a loan shark.

rb10

cric2k wrote: »

I came on this site to specifically complain about the £1 per day charge. Extant is right in that they do provide a service and they can do whatever to hell they want with the charges for that service - fortunately there are competitors who don't treat their customers however to hell they want and I will now be moving to one of them.

I would like the flexibility to move a pound or two into my overdraft towards the end of the month without having to worry about being charged as high as 3,650,000% APR (yes thats how much the interest is if you are a penny overdrawn!).

If an individual on the street did business like this we'd call him a loan shark.

The equivalent APR on being 1p overdrawn for the year is actually 0%. They have a fee-free buffer on all accounts, whereby if you are overdrawn for small amounts, you will not be charged.

But that's totally hypothetical anyway, as I doubt anyone would be daft enough to leave their account 1p overdrawn for a whole year.

cric2k

An extreme example yes but that will be the annual percentage interest rate charged on being overdrawn 1p for one day and believe me the buffer hasn't kicked in for me a few times - I've been living abroad for 3 and a half years but still paying my UK mortgage etc out of the Halifax account.

A few months ago I was charged £35 fees without even receiving any sort of letter notifying (paper free banking) that it would be taken they then charged another £35 when my Sky tv direct debit failed, this wouldnt have failed had they not fined me the original £35 without notice - this was within a week of them completely removing my overdraft facility without giving me a reason which was the reason the transactions failed in the first place... took me 3 months to get back to the UK and go see my bank manager to get it reinstated with them not giving me my 70 quid back!