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

opinions4u

cric2k wrote: »

A few months ago I was charged £35 fees

A fee that is abolished under the new charging structure that you dislike.

cric2k

opinions4u wrote: »

A fee that is abolished under the new charging structure that you dislike.

replacing something unfair with something even more unfair

irish_eyes_r_smiling

opinions4u wrote: »

A fee that is abolished under the new charging structure that you dislike.

yeah but i didn't mind that charging structure just the same way as you it sounds you don't mind the new structure!

i have a arranged o/d with halifax but will be in a position to deal with it as its not my main account. But their are some people out their who will get trapped in the vicious circle. okay it might kick a few people's butts into gear regarding their debt but in the meantime they are still going to be hit with £26 - £31 a month in fees.

halifax have done the sums, their not giving out these fivers out of the goodness of their heart, what they REWARD will quite easily be clawed back and then sum with this structure.

it naughty that for people who are already in o/d, they havn't been given alot of options* i.e, repaying it at an agreed amount say over 12 - 18 months at the current EAR rate.

gives people at chance to deal with the debt and maybe feel less agreived!


* i heard on another thread on hear if you have a halifax CC they are allowing you to transfer the balance over to that, but like i said not everyone will be able to take advantage due to not havin one.

jambosans

cric2k wrote: »

replacing something unfair with something even more unfair

Why is it more unfair?

Unarranged borrowing currently: £35 per paid item (up to 3 per day) and a £28 monthly charge for use of an unarranged overdraft.

Unarranged borrowing under new structure: £5 per day.

You wouldn't be complaining about this change if you didn't have the word "arranged" in front of your overdraft. There was a time when people would budget down to the last penny, but now people want an overdraft to cushion their financial ineptitude like it is some sort of God given right that must be charged at a low amount.

suicidal

oh well from reading what you have all posted, I am in more trouble than i thought, I have a £700 overdraft and for the past 18 months haven't been out of it,

dizziblonde

I'm very angry about this - more about their cheek in painting this as a benefit to the customer. While it's rare I go into my overdraft, and usually only for a week here and there at the most (joys of being an agency worker) it's still a change that can potentially hurt a heck of a lot of people. I've always recommended Halifax as a decent-ish bank to deal with (I know such comparisons are relative here!) and I'm hanging fire for the moment (I don't generally qualify for their reward account), but it's looking increasingly likely that when I get married next year - I'm going to jump ship and set up a joint account with OH's bank instead... and the damned Howard adverts and this change will be the reasons for the jump.

While the politics of overdrafts can be debated endlessly (and I don't expect to borrow money from the bank for free), sending customers a smug leaflet saying "we're improving your service by no longer paying you interest on your credit balances and charging you a huge chunk more to be overdrawn every day" really does stick in the throat - and that's very much how the changes leaflet paints it.

I expect a fair few people to jump ship because of this - it really is a step far too far and they haven't even tried to paint the changes in a beneficial light (they could have at least TRIED!).

suicidal

rb10 wrote: »

I would have thought that whilst you are on the Graduate account, you will be fine. The £1/day charges are instead of interest, and so as you are on an interest-free overdraft, I'd expect that this would become charge-free if RBS decided to introduce a similar charging structure.

However, I think it's highly likely that if/when the banks lose the test case over unfair bank charges, other banks will have to introduce either a similar system to Halifax's, or monthly account fees. So it's probably worthwhile trying to reduce your overdraft if you are able to.



That is incorrect. The charge of £1 is applied to the account if it is overdrawn, regardless of whether it is a single or joint account.



You are borrowing their money, why shouldn't they charge you for the privilege?



They tell you from the onset that:
(i) They can recall the whole overdraft whenever they like - so you certainly shouldn't be relying on it.
(ii) They can change the T&Cs of the account (which include the way they charge for overdrafts) by giving you 30 days notice. They have given you about two months notice.

I have just spoke to the halifax and made sure what they said yesterday was true, while they were saying over and over again about me getting a ulitimate reward card, they said for joint accounts it is £1 per person on the account per day .................

jambosans

suicidal wrote: »

I have just spoke to the halifax and made sure what they said yesterday was true, while they were saying over and over again about me getting a ulitimate reward card, they said for joint accounts it is £1 per person on the account per day .................

That is definitely not true. It makes absolutely no sense, you are paying for the use of the same overdraft, having two names on the account is neither here nor there. Are you charged double debit interest on a joint account? No. Are you charged double the U.R.C.A. fee on a joint account? No. What you have been told is incorrect.

noh

suicidal wrote: »

I have just spoke to the halifax and made sure what they said yesterday was true, while they were saying over and over again about me getting a ulitimate reward card, they said for joint accounts it is £1 per person on the account per day .................

Then the information they are giving you is incorrect.
It is £1 per day. Whether it is joint or sole makes no difference.

suicidal

I can only tell you what the told me yesterday, with what everyone has said I ended up ringing them up in the last half hour, and they still the same per person ???

I am not disagreeing with you am only saying what they said.