MSE News: Anger over new Halifax overdraft fees

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Former_MSE_Guy
Former_MSE_Guy Posts: 1,650 Forumite
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 22 October 2009 at 11:38AM in Budgeting & bank accounts
This is the discussion thread for the following MSE News Story:

"Halifax/Bank of Scotland (Hbos) is facing a customer revolt over new overdraft charges that mean many current account holders will pay much more ..."

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ps - this thread is specifically to discuss the news story above. There are many other similar threads on this forum already.
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  • apt
    apt Posts: 3,189 Forumite
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    You would have thought a Geography lecturer would be reasonably intelligent. By all means move the bills to another account, but all 'cancelling the overdraft' achieves is that you will be charged £5 per day rather than £1 if you mistakenly slip into the red.
  • zorgster
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    So those overdrawn are charged every day... and those paying in £1000 a month get £5 interest after tax ... ?

    Taking from the poor and giving it to the rich? :confused:

    It's insane...

    Z
  • trynsave
    trynsave Posts: 812 Forumite
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    What do you suggest the banks do instead? Let me play Devil's Advocate here...

    No-one liked the charges incurred before and many have been relaiming them despite being well aware of their a/c t&c's.

    Yes I agree that £25+ for each bounced item was excessive, but really what did people expect to happen? Get their money back & the banks not bat an eyelid?

    Personally I think it is great that Halifax pay £5 pm when the Reward a/c is credited by £1k, and I also think it good that the worst offenders for incurring retn'd fees will now be exposed to only £5 per day.

    I am guessing that many (though I accept not all), who live in constant overdraft could repay and live in a credit balance will now have found the inspiration to do so. To save 5p a month was not an incentive in the case of Mr Muir. If banks can get their overdrawn customers to repay their debt perhaps they may be in a better position to lend to those who really need it!
  • Lokolo
    Lokolo Posts: 20,861 Forumite
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    zorgster wrote: »
    So those overdrawn are charged every day... and those paying in £1000 a month get £5 interest after tax ... ?

    Taking from the poor and giving it to the rich? :confused:

    It's insane...

    Z

    So having £1000 income per month now makes you rich? O..k..
  • zorgster
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    Lokolo wrote: »
    So having £1000 income per month now makes you rich? O..k..

    well.. er.. yes.. in my books.. over the last few months... it varies under that... so having £250 taken out of my account annually by my bank because i am somewhere between £1000 and -£1500 each month... feels a bit like robbery...
  • Lokolo
    Lokolo Posts: 20,861 Forumite
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    zorgster wrote: »
    well.. er.. yes.. in my books.. over the last few months... it varies under that... so having £250 taken out of my account annually by my bank because i am somewhere between £1000 and -£1500 each month... feels a bit like robbery...

    Thats not what I said, I said £1000 INCOME. You get this from a job which pays £12k a year. The £1k a month doesn't have to stay in there.
  • Extant
    Extant Posts: 2,140 Forumite
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    zorgster wrote: »
    well.. er.. yes.. in my books.. over the last few months... it varies under that... so having £250 taken out of my account annually by my bank because i am somewhere between £1000 and -£1500 each month... feels a bit like robbery...

    That's a charge for their service. If you are unhappy with that charge, find another provider.

    As trynsave has said, did people really expect for all of this to go on with bank charges and for the banks to not do something? Halifax has done something. The only outcome of this is that the banks will now know what is viewed as permissable by the authorities and charge in line with that. Say goodbye to any "goodwill" refunds.
    What would William Shatner do?
  • Extant
    Extant Posts: 2,140 Forumite
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    zorgster wrote: »
    So those overdrawn are charged every day... and those paying in £1000 a month get £5 interest after tax ... ?

    Everyone who can fund the account with £1,000 will get the £5 - regardless of whether they're overdrawn or not.
    Taking from the poor and giving it to the rich? :confused:

    So no, not really.
    What would William Shatner do?
  • Tojo_Ralph
    Tojo_Ralph Posts: 8,373 Forumite
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    edited 20 October 2009 at 10:08PM
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    zorgster wrote: »
    So those overdrawn are charged every day... and those paying in £1000 a month get £5 interest after tax ... ?

    Taking from the poor and giving it to the rich? :confused:

    It's insane...

    Z

    Charging customers to borrow money and rewarding customers who provide the money in the form of regular deposits?

    What a crazy concept. :rolleyes:
    The MSE Dictionary
    Loophole - A word used to entice people to read clearly written Terms and Conditions.
    Rip Off - Clearly written Terms and Conditions.
    Terms and Conditions - Otherwise known as a loophole or a rip off.
  • jambosans
    jambosans Posts: 1,493 Forumite
    edited 20 October 2009 at 11:15PM
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    I can't believe that this article uses an example of an "outraged customer" when they can clearly avoid overdraft usage. If you're £1000 overdrawn, can't afford to repay and have no other lines of credit, then you can be "outraged".

    Also, I cannot understand those who are in a position to repay their overdrafts getting so up in arms. An overdraft is not something which is supplied on demand at a low rate, it is a form of borrowing done on the banks terms. If they didn't have an overdraft, then there would be nothing to complain about, but because the facility is there and charged at a higher rate, it is an "outrageous" change.

    I do have sympathy for people who are going to struggle from this change, but draw the line with those who cannot be bothered to budget (and act like an overdraft with low fees is some sort of consumer right).
    Anything I post is my opinion, so from time to time I may be wrong. I try to provide answers based in fact, however I don't know everything, so (like all posters on MSE), take what I say with a pinch of salt.
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