Banks automatically increase overdraft

jambosans

AfterDark wrote: »

I'm just worried that she's gonna run it up and get herself in a terrible situation. But what can do

Tell her to ring Halifax, and request the limit reduced. You obviously can't force her, but she's not being forced to spend it.

jo259

Hello, my first ever post in MSE Forums - and it's because the Halifax have annoyed me! Be gentle, people.

I appreciate it's been a while since anyone posted here, but I received a letter from the Halifax today increasing my o/d facility from £300 to £850 without my consent "after they reviewed it". I now need to call them to tell them I don't want it.

I realise I don't need to use it, and won't, as I don't like using the one I already have, but really, it gets my goat when a bank who sold toxic debt does things like this and wonders why people abuse the facility and find them self in huge unmanageable debt.

This increase also conveniently takes the o/d into the fee paying level - at the moment, it is currently fee-free. No way will I give them my £1 per day, I can tell you....

opinions4u

jo259 wrote: »

Hello, my first ever post in MSE Forums - and it's because the Halifax have annoyed me! Be gentle, people.

You'd normally be better off starting a new thread (top left hand corner of the screen for the main page for each part of the forum).

I appreciate it's been a while since anyone posted here, but I received a letter from the Halifax today increasing my o/d facility from £300 to £850 without my consent "after they reviewed it". I now need to call them to tell them I don't want it.

Or go in to branch. You could also try reducing it online first - I'm not sure if this still works, I'm sure others will confirm.

I realise I don't need to use it, and won't, as I don't like using the one I already have, but really, it gets my goat when a bank who sold toxic debt does things like this and wonders why people abuse the facility and find them self in huge unmanageable debt.

Which toxic debt did they sell? Or buy? Are you trying to say your debts will become toxic? Their Corporate arm made some pretty stupid lending decisions but £850 overdraft limits are small fry by comparison.

This increase also conveniently takes the o/d into the fee paying level - at the moment, it is currently fee-free.

And as long as you remain within £300 on an URCA account it remains fee free. It only costs you if you go beyond that level.

No way will I give them my £1 per day, I can tell you....

Great, sensible way to run your money. Even if you keep the overdraft, staying under £300 costs nothing. Being, say, £320 overdrawn would cost you £1. Better than the £5 a day they charge if you reject the £850 and return to £300 but accidentally hit £320.

I've had a £10k overdraft limit with them for over a decade. Since the daily fees were introduced I've never used it. Prior to the fees it encourage laziness so going £100 overdrawn for a few days didn't matter - now it does.

Carry on being prudent with your money. It's the way forwards. But you'll find dozens of posts on this forum about banks reducing limits, declining overdrafts etc. They clearly like the way you run your account, so when they tell you (as they have previously) that your overdraft limit gets reviewed annually it really does mean your limit can change once a year.

TMoose wrote: »

It's impossible that they have done this without her consent. Overdraft changes have to be requested, and T&C's agreed to.

I appreciate this post is 3 months old, but the overdraft agreement allows the bank to review limits annually. So an increase doesn't have to be requested, although when made it can be declined. Equally, the bank can call in an overdraft without notice - so relying on overdraft for long term debt is not a good idea.