MSE News: Reaction to Halifax's changes

jambosans

andrewstirling06 wrote: »

If you go overdrawn you have until the close of business (5pm and 7pm for some branches) to pay money into the account. If the account is overdrawn at the close of business thats when the fee is added onto the account. So technically you could become overdrawn every day of the month and as long as by 5pm your account was in credit or within the buffer there would be no fee.

You're slightly mistaken, you have until the end of the day* to bring the account back within credit/ overdraft limit to avoid the daily fee.

Depositing a cheque or money in branch will follow cut-off times, and the branches working hours, however a Faster Payment, or internal transfer can clear out with working hours.

*technically 00:00.

cheggers

30 years I have been with the Halifax, as of Sunday I'm with another Bank now.

When I went to close my account today, they bangged on about the reward account at £12.50 a month, and the competative £1 a day overdraft fee.

My current overdraft costs me £1.50 to £2 a month, now I'd be paying £15 to £20 a month in fees. So long Halifax, so long Howard.

A clever marketing ploy to help customers move to a better bank. At last Halifax gave me the kick up the backside to move away

Unkownn

Well it appears that I am screwed. =/

There is no way for me to get out of my overdraft at the moment, not unless I switched and they matched accounts. Last time I tried this though Alliance and Leicester where idiots and said I had to prove I had been in credit for 48 hours.

jambosans

Unkownn wrote: »

Last time I tried this though Alliance and Leicester where idiots and said I had to prove I had been in credit for 48 hours.

Well would you want to take on someone who lived in their overdraft with another bank? If you can't prove an ability to repay the Halifax, this indicates to A&L that you are a potential risk.

For some more general advice that may help minimise your fees, see the below thread:-
http://forums.moneysavingexpert.com/showthread.html?t=1986907&highlight=

Doomcow

just read the article (admittedly havent read this thread in full), but it says £10 "buffer" zone for evey customer - this isnt right. i asked about it in store as well and they were all "dont be so silly" attitude - plus its been only a few days since i changed into this account (which i didnt want) and have already been into my o/d overnight by under 20p (by accident, needed food / fuel at like half 11 at night) twice. so £2 charge already - !!!!!!.

jambosans

Doomcow wrote: »

just read the article (admittedly havent read this thread in full), but it says £10 "buffer" zone for evey customer - this isnt right.

Quoted from BBC Radio 4's Money Box article on the new charges:-

An HBOS spokesperson said: "We will be giving customers with arranged overdrafts a £10 buffer zone to help those who slip into the red by a small amount."

MSE also mention it in the below guide:-
MSE News - How to beat Halifax's overdraft charges

Now the issue is, this £10 buffer is not written into your terms and conditions, so staff are under no obligation to inform you it exists. I think the logic behind this is that if customer's knew the buffer existed, they would consider it part of the contracted service, but in reality HBOS can simply withdraw it at any time without notice. It is quite common for banks to allow "shadow limits" on accounts that customer's are unaware of - they are not widely publicised due to the aforementioned reasons.

I would contact HBOS and challenge them on this issue. If they are currently operating this policy (regardless of the service being part of your terms and conditions), they may wave the fees. To announce the existence of a "buffer" but not provide it to all customers is certainly not Treating Customers Fairly. I think I've provided you enough links to make a sound argument to HBOS... Print off the BBC article and take it in to branch, see what they say.

henryg_2

Sounds like one would be better changing to barclays for now anyway..
Not a fan of the stunts most banks try to pull though, to be honest..

jaineinchina

I am not sure what the best option for me is: I have had an overdraft facility with Halifax for years (since being a student) and I've never actually managed to pay it off, and unlikely to in the near future. Instead of being charged £11 a month as I have been up to now, I will now be paying £30 a month presumably, which adds up to £360 a year.
I would love to ditch and switch but I am not in a position to pay off the 1,000 overdraft so I guess I just have to wear it. Bloody Halifax.

opinions4u

jaineinchina wrote: »

I am not sure what the best option for me is: I have had an overdraft facility with Halifax for years (since being a student) and I've never actually managed to pay it off, and unlikely to in the near future. Instead of being charged £11 a month as I have been up to now, I will now be paying £30 a month presumably, which adds up to £360 a year.
I would love to ditch and switch but I am not in a position to pay off the 1,000 overdraft so I guess I just have to wear it. Bloody Halifax.

In normal circumstances, there is no way I would advocate this, but these are unusual circumstances:

Could you get a low rate / 0% purchase credit card (e.g. from Halifax) and do £1,000 worth of spending on that instead of via(NOT in addition to) your current account?

This should then leave you with no overdraft and no overdraft fees and give you 9-12 months to clear the credit card debt too (or at least whittle it down). Take this as a challenge to get yourself debt free as quickly as possible. Do not do any additional spending on the credit card though. It is a means to an end, not a temptation.


Other options: Change to the Reward account and make sure £1,000 a month goes through it, or if your overdraft is below £300 for large chunks of the month change to the URCA account and pay £12.50 a month for a range of so called perks that include no overdraft fees below £300.

amjack

I am so lost with all of this.

I have a £1000 o/d with Bank of Scotland, and with the new charges I'll be paying out £30 per month. I'm a stay at home mum, and despite having about £400 per month coming in (from tax credits, child benefit and allowance from partner) I'm finding it really difficult to begin to clear the o/d, especially with an already bleak Christmas coming up. I've tried applying to RBS/Natwest and was told over the phone that if I changed my a/c to them they would match my £1000 o/d, however I've just been into the branch and they wouldn't even put the application through - saying that because I'm "unemployed" I wouldn't be given an overdraft. Going by this information, there's no point in me trying to get a balance transfer-type credit card (which was my next option).

I really don't know what to do. It seems like I'm trapped with Bank of Scotland, and will be even more out of pocket for doing so.