MSE News: Anger over new Halifax overdraft fees

supersavor

as usual the articles one sided no mention that there is no charge for failed direct debits or that as it currently is if you went overdrawn by and a payment failed at the moment you could get a £28 and at least another £ 35 charge for going overdrawn outside your overdraft 1 day at the moment,

in the new way if you went from the black to outside of a overdraft in one day you would be charged £5

but sure we are not gonna let facts get in the way of a good story

rb10

supersavor wrote: »

as usual the articles one sided no mention that there is no charge for failed direct debits or that as it currently is if you went overdrawn by and a payment failed at the moment you could get a £28 and at least another £ 35 charge for going overdrawn outside your overdraft 1 day at the moment,

in the new way if you went from the black to outside of a overdraft in one day you would be charged £5

but sure we are not gonna let facts get in the way of a good story

Agreed - this site is usually such a strong advocate of 'unfair bank charges' that it really is strange to have completely missed off such a major part of the changes.

jambosans

supersavor wrote: »

but sure we are not gonna let facts get in the way of a good story

I agree, although they mention a little about the current charging structure, it is still very much downplayed within the context of the article.

That said, I did not expect an impartial news article on a self-confessed "consumer revenge" website to compare and contrast. Simply adding fuel to the fire, without questioning "why?" Besides the obvious - banks like money - it would have been nice to hear an official response from HBOS. Perhaps the most startling part of the article was the lack of connection between the Test Case and these changes - HBOS deny it, but everyone (except MSE) appears to see it. Suppose that doesn't matter though, people are still going to kick up a stink, and now more so with MSE's blessing.

Unkownn

Well this screws me over. I live in my O/D at the moment due to being made redundant, and well my income will not clear it and have no savings. Pretty screwed it would appear.

AndrewCarnegie

I have an overdraft of £750 on my main account and also a £600 overdraft on my bill payment account both with Bank of Scotland (which the bank suggested I took). I currently pay £7 - £9 interest each for "using" the overdrafts, which are always in the overdraft which I can not repay easily due to bills ect. I also have an account with the Lloyds TSB where the family allowance is paid into which used to be , it has an overdraft of £250 , so this account is always overdrawn too as it is only there to receive the family allowance (of £45 ). I was charged about £5 a month for "using" this overdraft "facility".

I know you will all say "You owe the money so you need to pay it back", but the banks happily supplied this and were making money with my using the overdraft.

So from December I will be paying £90 a month for having the overdrafts....where as before I was paying £23-25.

They must realise that this will only affect the poorest of people that need to use the overdraft to survive each month.

I think if any other company increased their charged over 200% almost overnight there would be and uproar!

What really gets to me is myself and my wife work full time and bring a young child up, we struggle and JUST scrape by...whilst there are people out there who seem to get everything for free and do not work (bus passes, money for alcohol, clothes, food, money to bet with!) and they do not have a worry in the world.....if they get into trouble the social just sort if for them!

postmanpat68

Lokolo wrote: »

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.

From what i know, a job that pays £12k a year will not give you £1k income unless you are cheating the taxman.:rotfl:

AndrewCarnegie

postmanpat68 wrote: »

From what i know, a job that pays £12k a year will not give you £1k income unless you are cheating the taxman.:rotfl:

Exactly what I was thinking!

mum2one

Even when I earnt 13 1/2k, the take home on that was just under £900 pm.

Their is a loophole to paying in £1000 per month, it doesn't have to be wages, for instance you had £600 going in withdraw £400 leave it for a couple of days, then use it....£1,000 going in - no issue to that x

jambosans

AndrewCarnegie wrote: »

So from December I will be paying £90 a month for having the overdrafts....where as before I was paying £23-25

If you contact BoS they will combine both overdrafts on the one account, so you will only pay one set off fees. So you can effectively reduce £60 per month (not £90 as stated) to £30 (approx). Plus if you change to the Reward Current Account and do what I have suggested below, you will reduce that amount by a further £5. This effectively put you back to square one, paying £2 extra, at most, per month.

postmanpat68 wrote: »

From what i know, a job that pays £12k a year will not give you £1k income unless you are cheating the taxman.:rotfl:

You're annual income does not have to equal £12000 after tax to qualify for the £5 Reward. You could transfer the same £100 in and out tens times (a bit extreme but it is possible). The money only has to credit the account, there is no set time or minimum balance required, just any credits totalling £1000.

AndrewCarnegie

jambosans wrote: »

If you contact BoS they will combine both overdrafts on the one account, so you will only pay one set off fees. So you can effectively reduce £60 per month (not £90 as stated) to £30 (approx). Plus if you change to the Reward Current Account and do what I have suggested below, you will reduce that amount by a further £5. This effectively put you back to square one, paying £2 extra, at most, per month.

I am not sure if they would do this as they are with two different banks Lloyds TSB & Bank of Scotland (I know they are all the same company but i still do not think they will do it)

I will also have to change all my Direct Debits ect. from my bill payment account...which was set up to help me previously...!
I here what you are saying...and I will look into it...but I still think they are out of order doing this to their customers who after all have paid their charges for the overdrafts monthly for years.

Why not try to help the customers who are obviously struggling ?

As soon as I can pay off the overdrafts (Probably never!) I will be moving...so they can get their charges from someone else.