MSE News: Anger over new Halifax overdraft fees

jambosans

AndrewCarnegie wrote: »

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 was referring to your two overdrafts with Bank of Scotland:-

AndrewCarnegie wrote: »

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

Lloyds TSB are still operating as a separate entity, so that overdraft would remain separate. You could perhaps use some of the Lloyds overdraft to pay a bit off your Bank of Scotland overdrafts, or even shift spending to the Lloyds overdraft - as this is still charging debit interest.

Inactive

AndrewCarnegie wrote: »

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

You must also remember that an overdraft was never intended as a long term loan, the banks can and do call in overdrafts at short notice.

You may well be better served by a more traditional loan facility.

craigf136

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.

No you don't. You haven't taken Tax & Vat into consideration on the 12k salary, it would work out to approx £700/800 a month income. To Get £1000 into the account every month would be a salary of approx £15500.

AndrewCarnegie

Inactive wrote: »

You must also remember that an overdraft was never intended as a long term loan, the banks can and do call in overdrafts at short notice.

You may well be better served by a more traditional loan facility.

I know this...but it is a way of making easy money for the banks.....If they are only giving out loans to people who can prove they do not need one (so they will not take one) what other way will the banks make money except form mortgages (which are hard to come by) and overdraft charges? If everyone paid their overdraft the banks would be even more in the S**t! they would then get no money from the people that they know would never pay the overdraft off...which is also the banks error actually giving people these overdrafts when they knew they probably would never get the money back (except for the monthly charges which actually have paid the overdraft total back several times over )

noh

craigf136 wrote: »

No you don't. You haven't taken Tax & Vat into consideration on the 12k salary, it would work out to approx £700/800 a month income. To Get £1000 into the account every month would be a salary of approx £15500.

You mean National Insurance not VAT.
It's irrelevant anyway there is no requirement to earn any amount at all.
The requirement is to fund the account with a total of £1000 a month.
This can come from any source it could be the same money bounced between two Halifax accounts ie £250 x 4 or even £100 x 10.

Inactive

AndrewCarnegie wrote: »

I know this...but it is a way of making easy money for the banks.....If they are only giving out loans to people who can prove they do not need one (so they will not take one) what other way will the banks make money except form mortgages (which are hard to come by) and overdraft charges? If everyone paid their overdraft the banks would be even more in the S**t! they would then get no money from the people that they know would never pay the overdraft off...which is also the banks error actually giving people these overdrafts when they knew they probably would never get the money back (except for the monthly charges which actually have paid the overdraft total back several times over )

So what exactly would you do if you received written notice that your bank was calling in your overdraft facility?

Trust me, I have no time for the banks in general, but if they don't make a profit, they don't exist.

Personally I would seek a personal loan, pay off the overdraft/s, that way at least you know exactly how much you will repay in interest.

craigf136

noh wrote: »

You mean National Insurance not VAT.
It's irrelevant anyway there is no requirement to earn any amount at all.
The requirement is to fund the account with a total of £1000 a month.
This can come from any source it could be the same money bounced between two Halifax accounts ie £250 x 4 or even £100 x 10.

:embarasse

Erm yip, I'll put it down to being 1:50am lol

AndrewCarnegie

Inactive wrote: »

So what exactly would you do if you received written notice that your bank was calling in your overdraft facility?

CRY Probably!

I think I will have to look for a loan...but the interest rate on loans are so hight too..and if I do I will cancel all overdrafts

Inactive

AndrewCarnegie wrote: »

CRY Probably!

I think I will have to look for a loan...but the interest rate on loans are so hight too..and if I do I will cancel all overdrafts

Indeed they are, but at least they are less than you will be paying Halifax and you will have the security of a fixed term to repay.

Good luck.

YorkshireBoy

AndrewCarnegie wrote: »

I think I will have to look for a loan...but the interest rate on loans are so hight too..

But you'd need to have a very poor credit rating to have to pay more than the 15.9%/18.9% EAR you were paying before on the BoS current accounts.