MSE News: Anger over new Halifax overdraft fees

Inactive

jonmercer wrote: »

OMG, I can't believe the attitude of some people on this site, you think that people want to live in an overdraft? I'm sure half of you actualy work for the Banks. tryansave, do you just come these forums to wind up the less fortunate?

I don't work for the banks, in fact I have very little time for them, however to " live in an overdraft " is not very MSE or clever is it?

The bottom line is, people need to budget better, all they are doing is spending more than they earn, then blaming the banks for charging them for the luxury.

~Jem~

To tryansave - i dont even have kids for starters.

The actual attitude of some people on here is really bad. Saying people living in their overdraft are 'spending more than they earn'

If you earn just enough to cover your outgoings and somewhere along the lines an unexpected expense comes along that puts you in your overdraft, then its extremely difficult and long term to claw your way out of the overdraft!

And will people stop going on about the £5 a month from paying in £1000?
Its a pathetic amount.

Luckily i have been accepted for an A&L account and i will be getting £100 when i switch, which is £40 more over the year than halifax gives and i only have to pay in £500 a month, plus there overdraft is capped at a fiver a month.

After being a loyal Halifax customer since i was 10 years old!! I will now finally be closing every account except for my cardcash, which is purely to keep my electron card. Hopefully A&L will give me an overdraft big enough to clear my halifax one, then never again will they get a penny off me!

Inactive

~Jem~ wrote: »

The actual attitude of some people on here is really bad. Saying people living in their overdraft are 'spending more than they earn'

If you earn just enough to cover your outgoings and somewhere along the lines an unexpected expense comes along that puts you in your overdraft, then its extremely difficult and long term to claw your way out of the overdraft!



!

But that is a fact, that cannot be denied, the simple, if somewhat harsh cure, is to spend less, which I accept is not easy for many, however it is achievable by all, by careful budgeting.

jonmercer

Inactive wrote: »

I don't work for the banks, in fact I have very little time for them, however to “live in an overdraft " is not very MSE or clever is it?

The bottom line is, people need to budget better, all they are doing is spending more than they earn, then blaming the banks for charging them for the luxury.

No, it is not very MSE, I agree that there are far too many people like that out there, but do not tar everyone with the same brush! The reality is that some people end up in an overdraft situation through no fault of their own and as normal; the Banks make it harder for them to escape form it, the bottom line is that the Banks need people in debt to pay for the free banking for the rest of us! I believe that this is morally wrong! If you have seen the latest literature from Halifax "Making the most of your Current Account" on page 9 it states "You will be charged £5 a day for each day that you use an unarranged overdraft" this is just incredible, as we all know, the Bank can at any time cancel your overdraft at any time and without any reason. I was caught out with this about 10 years ago with the Nat West Bank only back then it was £3.50 per day. I left the RAF after serving 9 years and couldn't get a job straight away, it was 3 months before a received my first pay check, (2 months without work and working 1 month in hand) Nat West cancelled my overdraft due to no money going into the account, so before I knew it taking into account DD's for Mortgage, Utilities and so on, bearing in mind it was £22.50 for bouncing a DD and £35 for the letter telling you so, I was paying around £450 a month in charges! The Banks are just greedy and they have learned nothing from the latest decisions regarding unfair charges, it seems to me that they are just finding another way around the legislation!

BlondBoy

Can't help but think this is a bit of a weeding out exercise too.

In broad terms, there are three types of customer as I see it:

People on reasonably high incomes who put a lot of money through the account regularly - and therefore are eligible for and may use a large overdraft. These people likely won't be too bothered as some of the charge will be offset by the reward and a couple of quid likely won't make much difference.

People on moderate incomes who may dip occasionally into an overdraft for emergencies or unforeseens but can pull themselves out during the course of the month. These people will likely think a bit more carefully about how long the overdraft is being used for.

People on low incomes who get into an overdraft (sometimes because of an emergency, sometimes because of poor budgeting). These people are, frankly, being walloped.

With bank funds still tight, the first two groups are attractive to the bank. The latter group are less so. So up with the charges and I suspect they'll be quite happy to wave the people on low incomes goodbye.

Harsh reality of the new world of banking, i fear, where the first two groups aren't 'subsidising' the latter through the old charging system.

Thank goodness, I'm lucky enough to be in the middle group of people. But have a lot of sympathy for the people in the latter group, where a potential charge of £30 per month will hurt like crazy.

Inactive

You missed out the 4th group, those that budget carefully and don't ever use an overdraft facility.

BlondBoy

Inactive wrote: »

You missed out the 4th group, those that budget carefully and don't ever use an overdraft facility.

Fair point, well made.

CMM_2

BOS 'a friend for life' - they used to say -but these new charges are scandalous ... remember HBOS need customers

wolfina wrote: »

Well i am very angry about it...Me and my husband both have overdrafts totalling £1200...and only found out about any of this on monday morning. As we both spend most of our time in our overdrafts we will be looking at charges of around £60 a month .....£60 we can not afford to give away for something that used to cost us around a tenner for. I am absolutly disgusted that they have done this and so close to christmas. Why wait till now to tell us and start it in the month leading up to christmas. Had they of told us 2 months ago i would have been able to clear them in time but now i am sat worrying about how to pay them off and still get through christmas with my 2 kids.
And top it all off they have refused to extend our loan which is due up next year, which would allow us to pay off the overdrafts. This after having loans with them for the past 6 years and have never even made a late payment, and have also never went over the arranged overdraft. I swear though i will do anything i can to make sure to can pay them off and shut down my accounts. I am disguted that we have been given 6 weeks notice of this.

opinions4u

CMM wrote: »

BOS 'a friend for life' - they used to say -but these new charges are scandalous ... remember HBOS need customers

But losing customers with overdrafts would improve their balance sheet.

cheap_charlie

I have a £400 overdraft facility that I have been trying not to use but I resent the fact that should an emergency crop up I have to hand over £1 per day I use it.

Even factoring in the £5 per month "reward" I think the system sucks, and whilst doing a Mystery Shop today and having a banking staff member try to sell the Ultimate Reward Account to me I really felt, for the first time in 23 years as a customer, that I was being cheated by BOS.

I have never gone over my arranged overdraft, have stuck to the rules and paid reasonable charges to use the facility but now BOS have changed the rules significantly.

The Ultimate Reward account is probably the way I will go, despite the fact I already have half the insurances it provides me with.

I cannot currently vote with my feet but when I can, I suspect I shall.