MSE News: Anger over new Halifax overdraft fees

jccaird

This is going to be a real pain for me - I switched to A&L earlier this year and unfortunately they wouldn't match the Halifax OD of £1200, so I've been paying it off as much as I can each month - down to about £1000 now, all the time looking at possible payoff options, but rejecting them due to high APR. Paying off with a fixed APR on the OD was suitable for me, as long as I paid above the interest each month.

This is basically going to extend the payoff period considerably as I will be charged for every single day until I have paid off (even if I were to transfer back, I'd pretty much be charged the full whack due to loans and rent going out on Day 1 after being paid) - which could be quite some time.

If you're in the same situtaion as me, speak to them immediately. I'm currently awaiting a call back from their Customer Care team - a manager that I spoke to earlier in the week has suggested that there could be a solution and that a delay could be placed on the account in order to find suitable finance to cover the OD. One solution he mooted (that I was not keen on) was to let the ac!!!! fall into arrears whereby it'll be passed onto their collections team and all charges frozen - I enquired as to whether this black mark would be removed from my record and he said that there would be "no guarantee".

I suspect this might take some pleading with A&L...

Paul_Varjak

I see little point in all the anger from customers of the Halifax. I think it is far better to vote with your feet, rather than your mouth! That is what I did, closing my account on the very day I was notified of these fees!

In general, I find it a good idea to have accounts with more than one banking institution anyway. That way, if one of them imposes unacceptable conditions on an account, it makes it a relatively simple task to switch over.

Remember also, if you use a Halifax agency (rather than a branch) there is a fair chance it will close for good on 6th January!

cowbopper2

It does seem ridiculous that the basis of charging has now shifted from reckless account users to those who operate within an overdraft. I got left in the lurch by my partner last year and have been managing my debt down quite well. I owe Halifax £400 now, but dont forsee paying this off just yet as i've also had to take reduced hours to keep my job. Halifax want to charge me £1 per day, or the equivalent of 91% APR. Can this not be construed as an 'excessive' rate bvy way of the CCA.

My main question is this, if i do not accept the new terms, i can give notice to close the account? Do the bank have to agree a reasonable repayment plan for the overdraft?

opinions4u

cowbopper2 wrote: »

My main question is this, if i do not accept the new terms, i can give notice to close the account? Do the bank have to agree a reasonable repayment plan for the overdraft?

No. An overdraft is repayable on demand. More likely that they'll give you time to repay though, charging you £1 a day until you owe nothing.

For the circumstances you describe you may be better getting your overdraft below £300 and changing the account to an Ultimate Reward which charges no daily fees for being overdrawn by less than £300.

jccaird

cowbopper2 wrote: »

It does seem ridiculous that the basis of charging has now shifted from reckless account users to those who operate within an overdraft. I got left in the lurch by my partner last year and have been managing my debt down quite well. I owe Halifax £400 now, but dont forsee paying this off just yet as i've also had to take reduced hours to keep my job. Halifax want to charge me £1 per day, or the equivalent of 91% APR. Can this not be construed as an 'excessive' rate bvy way of the CCA.

My main question is this, if i do not accept the new terms, i can give notice to close the account? Do the bank have to agree a reasonable repayment plan for the overdraft?

Similar situation as I'm in. I asked the question and got an emphatic "No". Give them a call anyway and ask to be contacted by Customer Care. I'm hoping to agree to some kind of payment plan or extension to allow me to find alternative credit.

newleaf

I tried to upgrade my High Interest account online to the Reward account and wasn't able to find a way to do it. So yesterday I went into the branch to do it and was told I would have to book an hour long appointment to do it! When I expressed reluctance (sensing the likelihood of hard selling of all sorts of things I don't need or want), I was quietly told I could do it over the phone in a minute. I did so later in the evening, and it was very simple.

cowbopper2

I've just done a quick read through the banking code and believe this applied in some cases...

"6.4

If the change is to your disadvantage, we will tell you about it personally at least 30 days before we make the change. At any time up to 60 days from the date of the notice you may, without notice, switch your account or close it without having to pay any extra charges or any
interest for doing this."

Surely, on this basis i can close the account and pay back the overdraft by arrangement (understanding that interest will still accrue) It would appear that every available alternative offering is a 'disadvantage'

FreeD

originally posted by opinions4u

Switch to the Ultimate Reward account. The cost is £90 a year (if you are funding the account with £1000 a month) and you won't be charged a penny for overdrafts less than £300.

And there's bag loads of insurance with it that will probably pay for itself.

There - a hot money saving tip to save you £270 a year!

Well I definitely won't be listening to anything you have to say being an x bank manager...no doubt living very comfortably now

Halifax is a completely useless bank anyway...the uk call centres are useless, agents are always unfriendly and clueless...I recently asked for some duplicate statements (simple task) dated back to 2006...I wanted to see who had paid me what...but all the info they could supply was in the form of a paper mini statement...with no information other than date and amount...several times I phoned the call centre for more detailed information and several times they sent me out the same...I said why don't you just upload all the old statements to a server and make them avaialble to online banking customers? erm ehhh erm we don't have that facility in place.

And how many times do they need to print these stupid booklets about changes in banking code etc every week I get one...can't they get it right. Such a waste of money in printing fees.

In fact I don't know why i've stayed with them for so long...I hope we will see a revolution soon people are being pushed to the limit...and we are not going to be bullied for much longer.

Taffy26

Absolutly correct, these fools defending the banks decision to fleece the working class people of this country seem to be forgetting that the only reason the banks require this exra revenue is because their greed got them into a sticky situation in the first place!
Why the hell should I give Halifax £30 a month when private owned banks are happy to facillitate my needs for £5? It is yet another greedy ruthless policy, why am I suprised they are backed by our current Labour Goverment?

Taffy26

Try santader credit card, you can transfer the dept to that interest free for 15 months!