MSE News: Payday lottery could scupper Halifax reward cash

davidgmmafan

"I thnk it's absalutely ridiculous that MSE sensationalises this!
It's £5 once in a while and its certainly not worth such a daming story.
I've noticed a trend with MSE stories doing this."

It was in the Daily Mail yesterday, don't see the problem myself. Yes its a pain, but you can arrange the transfer, or transfers, without leaving home. You don't even need a grand to do it.

However much you hate the banks there ARE some terms and conditions which are reasonable and this is one of them. The only thing interesting about this story is it reveals, yet again, the disdain they have for customers. Suggesting changing the payment date it so stupid I cannot believe a spokesperson said it. Maybe they are now an ex-spokesperson?

Old_Wrinkly

MSE_Martin wrote: »

The £5 reward is the KEY SELL from Halifax - we've had a number of emails from people wanting to know why they haven't got their money - have followed it through - found a reason and published it.

This is not really to do with the £5. It is the question of regularly funding an account with a specific amount per calendar month (£1000 in this case).
HBOS are not doing anything worse here than they did previously when they paid interest on the account. In fact if you don't fund for a month now, you only lose out for that month. Previously it could be for a number of months even if you only missed one month's payment. And they are operating exactly in accordance with the T&Cs.

This site is here to help people - by warning them of the issue they may get it.

Which is great. But be sure to get the issue right. Surely the thing to tell the unwary is
1. Know the T&Cs of your account(s)
2. Know when your payments are made into your account
3. If there is likely to be a problem at some point in the future, plan around it.
(Surely people know when they are due to be paid ... it's not a "lottery",
and Bank Holidays often occur at the start or end of a month)

I recognise that the article states :

How can you avoid this happening?
The official advice from Hbos, if you're affected, is to ask your employer to make "alternative arrangements" that month.
But this would mean getting paid late, which could trigger further problems.
It would be more practical to move money around yourself via an alternative account to ensure the necessary funds are paid into your current account.

As has been said, the "official advice from HBOS" is clearly ridiculous, and shouldn't have even been mentioned (in my view).
As has also been said, there are alternatives to using "an alternative account" (i.e. draw money out and pay it in again - which I'm fairly sure you have suggested yourself elsewhere).

It's not sensationalised. It's just written up in an interesting way - I don't see MSE Guy has done anything wrong and doesn't deserve that comment.

If you look at the article header, it was written by Lee Boyce.
Guy just created the thread.

willo65

How many people get paid at the beginning of the month?

williham

Seems pretty obvious to me.. it's if you put £1000 in you get £5.. if you don't then you don't!
Simple fix aswell.. just transfer the money out and in as everyone else has said.

But I suppose it's good to have the story for people that can't read very clear terms and conditions.

casualbrowser

MSE_Martin wrote: »

What tosh! I hadn't read this story before but don't see any problem with it.

I think the point that talulahbeige is making is probably referring to the tone of the article. For example in the 2nd para it says "Those on its Reward account are supposed to get £5 per month..." - 'supposed to' isn't correct - they do if they deposit the money
In para 4 it says "Hbos's strict rules mean...." - depends how you define strict i.e. it is just the T&Cs for the account.

I agree the article is useful to remind people with this account that it is a calendar month but it is not HBOS's fault if the money isn't paid in - IMO the article's tone could have been slightly more balanced

dodgeydave

This monthly salary payment and banking dilemma affect many accounts other than the two highlighted. Another one being Lloyds TSB vantage accounts. I find it a great problem as I am monthly paid and my employer pays early in some months. As many accounts require a min £1000 every month to retain the higher interest. As I understand it if the salary payment is missed for one month some accounts revert to a lower interest rate. I would like to know a bank that caters for the monthly paid?
I am thinking of setting up direct debits of a £1000 from LLoyds to Halifax then back to LLoyds on a monthly basis.

davidgmmafan

Exactly would it have been better if Halifax had decided, in the interests of their customer getting £5, to process the salary credits later? I think not!

michaels

I just whack 1k out of my 4% LTSB vantage account by faster payments rotate it through my 3 and the wife's 4 halifax reward accounts and back in to the LTSB by FP and don't even lose a day of interest - just need to do it 1 day each month, doesn't matter which one. 7 Accounts x 12 months x £5 make it a nice little earner and no need to have money sitting in the reward account not earning interest.

I hear hbos are offering a £50 incentive for switching a direct debit and standing order to a reward account so I will probably give that one a whirl too.

trynsave

MSE_Martin wrote: »

What tosh!

I hadn't read this story before but don't see any problem with it.

The £5 reward is the KEY SELL from Halifax - we've had a number of emails people wanting to know why they haven't got their money - have followed it thorugh - found a reason and published it.

This site is here to help people - by warning them of the issue they may get it.

Its not sensationalised its just written up in an interesting way - I dont see MSE Guy has done anything wrong and doesn't deserve that comment.

Is MSE Guy not capable of respnding to his own critics without running to Daddy? To dismiss someone else's views with a comment like 'what tosh' is very childish in my opinion.

I happen to agree with talulahbeige in thinking that the style of writing is more aggressive than merely informative. Yes, it is vital that we are made aware of the presence of such a negative loophole, but the tone of the article implies that HBOS could do something about the start of the month and subsequent bank holiday falling on a weekend, but instead choose not to just to inconvenience a avoid paying rewards a small number of their customers. That is Martin, in my opinion 'tosh'.

Perhaps you could get your mates at No. 10 to discuss a way to ensure that the start of a month only falls mid-week, when you next call in to discuss financial awareness matters?

And YES that was meant to be flippant!

No-one has any control over what dates the banks happen to be closed, least of all the banks, who we all know can't manage themselves nevermind the unmanageable. Lots of recent stuff has been their fault - this isn't one of them! If we all read and follow the t&c's of our accounts then we would know when we stand. For Halifax to entertain backdating payments to those who meant to, but didn't actually manage, to adhere to the funding requirements for whatever reason, the floodgates would just open for claims and complaints. Every Tom, !!!!!! and Harry would then think their reason for not properly funding their account was valid.

Please don't go all gung-ho for the Halifax over this. They are one of the best payers for many of us in today's financial climate. Attack them in such a sensationalist way and they may just decide that the system is more grief than it's worth and decide to cancel all reward payments for all. We would know who to thank then, wouldn't we MSE's Martin and Guy.

Ps. Don't kick me off this site now, pretty please. I just wouldn't know how to fill my evenings without it. I am that sad

flyingscotno1

I have to agree that I think the articles tone is wrong- it starts off too much on being critical on the issue as if HBOS is trying to dodge them or using underhand tactics.

They aren't doing that at all, it is just that for some folk their own payment day falls unfortunately. These things can happen but it is hardly HBOS fault- they don't decide when companies pay folk.