Halifax, New Account Charges

punked

Hi,

Okay, I've got myself into a little mess. I've been paying off stupid payday loans for god knows how long, anyway, to cut a long story short I have this month and they are all cleared, the I can start focusing on my bigger debts.

I just logged online and took a look at my Halifax Current Account and I'm -£222.00!!!! I have a £100 overdraft limit and because I was 81p over my £100 limit they have charged me £120!!!! Now I have no funds to clear this so obviously it'll be a further £120 the following month. I have just spoken to them and the best they can do is take £35 off the debt. Is there anything I can do? I just had a little cry and that didn't help much.

tripled

I would guess you're on the £5 per day charging structure (you're over your overdraft limit) - how long will it be before you can pull the balance down under £100? Have you asked them if there is any possibility you can temporarily increase the limit (unlikely they will but you don't ask you don't get).

punked

tripled wrote: »

I would guess you're on the £5 per day charging structure (you're over your overdraft limit) - how long will it be before you can pull the balance down under £100? Have you asked them if there is any possibility you can temporarily increase the limit (unlikely they will but you don't ask you don't get).

25th Feb before I can get it down that low, so an extra £125 I could really do without. It's just like a kick in the balls, I actually feel sick right now. When I phoned I was extremely polite, asked if there was anything they could do, in response I gold cold ignorant answers and when he said he could reduce it by £35 I suggested it was better then nothing, to which he started spewing out a script about being a final agreement. I stopped him at that point and told him I didn't agree to what he just said and before I do I'll seek some advice. How the hell can they charge £5 a day for 81p over!!!???

izools

I guess that £10 buffer doesn't exist after all.

How come it took you this long to notice? I think a formal complaint on the basis it is massively disproportionate to the amount over your OD (81p) and don't rest until it is upheld!

ajharris

punked wrote: »

Hi,

Okay, I've got myself into a little mess. I've been paying off stupid payday loans for god knows how long, anyway, to cut a long story short I have this month and they are all cleared, the I can start focusing on my bigger debts.

I just logged online and took a look at my Halifax Current Account and I'm -£222.00!!!! I have a £100 overdraft limit and because I was 81p over my £100 limit they have charged me £120!!!! Now I have no funds to clear this so obviously it'll be a further £120 the following month. I have just spoken to them and the best they can do is take £35 off the debt. Is there anything I can do? I just had a little cry and that didn't help much.

I would guess that if you go into the branch and explain the situation then they they will waive the charge. The decision to apply the charge is made by a computer which thinks only in terms of black and white and does not show discretion. Try and go at a busy time so that they will be more likely to give you the answer you want just to get you out of the way and deal with the next person. Obviously the branches do not want a showdown with you and even more so during a busy period.

If your track record is good and you do not generally make a habit of going overdrawn then this would further strengthen your case. I look forward to reading what happens next.

punked

izools wrote: »

I guess that £10 buffer doesn't exist after all.

How come it took you this long to notice? I think a formal complaint on the basis it is massively disproportionate to the amount over your OD (81p) and don't rest until it is upheld!

Possibly my own stupidity, I did receive the letter but read it as every time your account is accessed, i.e. money coming out, into your unautorised overdraft then they charge you a fiver, of course, if that was the case the only charge i'd have to worry about is the £2 authorised overdraft fee as I have nothing else linked to this account, my second account is with Halifax too, but I'm yet to convert bills etc over until I knew I could stay in the green each month.

I'll give complaints a ring tomorrow and see what they say. Thank you

jambosans

izools wrote: »

I guess that £10 buffer doesn't exist after all.

Mad as it sounds, but the buffer applies the first £10 of any arranged or unarranged overdraft. In the OP's case they were overdrawn -£100.81, which is 81p over the arranged limit of £100, therefore the buffer does not apply.

OP did you not get the mailing in October? Online message in December? Or the automated message which I've had to listen to when calling Telephone Banking for the past three months? There's been plenty of advanced notice.

Make a formal complaint and highlight the disproportionate level of charges in relation to the amount overdrawn. They will probably reply highlighting the fact that you left the account in an unarranged overdraft for 24 days in December.

punked

ajharris wrote: »

I would guess that if you go into the branch and explain the situation then they they will waive the charge. The decision to apply the charge is made by a computer which thinks only in terms of black and white and does not show discretion. Try and go at a busy time so that they will be more likely to give you the answer you want just to get you out of the way and deal with the next person. Obviously the branches do not want a showdown with you and even more so during a busy period.

If your track record is good and you do not generally make a habit of going overdrawn then this would further strengthen your case. I look forward to reading what happens next.

Thanks for the Reply,

One small problem, I registered online for this account so it's based somewhere up north!

punked

jambosans wrote: »

Mad as it sounds, but the buffer applies the first £10 of any arranged or unarranged overdraft. In the OP's case they were overdrawn -£100.81, which is 81p over the arranged limit of £100, therefore the buffer does not apply.

OP did you not get the mailing in October? Online message in December? Or the automated message which I've had to listen to when calling Telephone Banking for the past three months? There's been plenty of advanced notice.

Make a formal complaint and highlight the disproportionate level of charges in relation to the amount overdrawn. They will probably reply highlighting the fact that you left the account in an unarranged overdraft for 24 days in December.

Thanks for the reply,

I just replied to a thread saying I misread the letter, my own stupid mistake and possibly ignorance, and a costly one at that! However, I will be making a formal complaint tomorrow and see where that goes.

jambosans

punked wrote: »

I just replied to a thread saying I misread the letter, my own stupid mistake and possibly ignorance, and a costly one at that! However, I will be making a formal complaint tomorrow and see where that goes.

Yeah sorry I noticed, I only posted a minute after you. It's definitely worth a formal complaint, as you will probably find branch give the same answer as Telephone Banking.

rb10

punked wrote: »

One small problem, I registered online for this account so it's based somewhere up north!

They do have a lot of branches throughout the country, and you can use any one of them!