Halifax Overdraft being reduced.

madnes

Hi, I received a letter this morning from the Halifax Dated May 2010 explaining my overdraft was being reduced from £300.00 to £150.00 as of the 16th June 2010.
Recently in March, I reduced the overdraft from £400.00 to £300.00 and was sent a letter the overdraft would be re-assessed in March 2011.

I rang the number given to query the decision it was explained to me that this was final. And had been ammended under there terms and conditions for the following reasons;
1, I fail to credit the account with the monthly requirement. - £1100 per month is credited by my employer.
2, I do not run the account in accordance to there agreement. - I am yet to pay any fees and do not have unpaid transactions.
3, I have outstanding debts unpaid with themselves. - She was unable to provide evidence of this.
4, I have unpaid accounts with other creditors. - Untrue I owe £649.00 with Littlewoods, which is paid each month and I have a credit card with Crapone which I pay in full each month.
5, My past credit is at fault. - My last default was removed 5 yrs ago.
6, I have to much un-secured debt. My answer in point 4.

I have free access to 2 free reports per year with equifax through Crapone and Experian access through another package I have else were, I offered to send in a copy of these. She declined as they have made there decision.

I am currently overdrawn by £98.00 which is within my limit of £300.00 and this will be cleared on Friday 14th May when my salary goes in.

I have savings with the NatWest, the overdraft is just there for an emergency. Does the Halifax have a valid reason to reduce my overdraft. Or I are they just wanting to make more money out of me by having to pay the £2 a day charge for using an un-authorised overdraft?

I have emailed the CEO they have returned my call and advised this will be looked into, take the normal 8 weeks. Etc...

Your thoughts please...

opinions4u

An overdraft facility is repayable on demand.

They don't have to give a reason.

I am currently overdrawn by £98.00 which is within my limit of £300.00 and this will be cleared on Friday 14th May when my salary goes in.

So £150 as a limit is adequate then.

Or are they just wanting to make more money out of me by having to pay the £2 a day charge for using an un-authorised overdraft?

It's £5 a day.

madnes

opinions4u wrote: »

An overdraft facility is repayable on demand.

They don't have to give a reason.

So £150 as a limit is adequate then.

It's £5 a day.

Sorry don't know were I got the £2.00 a day from, that's when you have an agreed overdraft £2000.00 or something aint it.

They have gave reasons, 6 of them. Not one of there answers are correct tho.

YorkshireBoy

How many days will you have been overdrawn this month, and incurring £1 per day charges?

How long will it take to cover that with the pitiful amount of interest £98 of your savings account balance will generate?...years!?

Two points:

1. Now is an "emergency" isn't it?
2. NatWest operate FPs (if you can't get to branch to 'walk it round'), meaning you'd stop the charges immediately.

madnes

YorkshireBoy wrote: »

How many days will you have been overdrawn this month, and incurring £1 per day charges?

How long will it take to cover that with the pitiful amount of interest £98 of your savings account balance will generate?...years!?

Two points:

1. Now is an "emergency" isn't it?
2. NatWest operate FPs (if you can't get to branch to 'walk it round'), meaning you'd stop the charges immediately.

I will not have paid any interest to the Halifax as I am not over my arranged overdraft and I have the Ultimate reward account, I make use of the benefits.

I can afford to loose it, suppose I am more annoyed with there 6 explanations given by them to why they are reducing it.

YorkshireBoy

...I am more annoyed with there 6 explanations given by them to why they are reducing it.

So tell them...

http://www.halifax.co.uk/contactus/howtocomplain.asp

madnes

I have done. Spoke to there customer relations today. Normal 8 weeks for an answer.

YorkshireBoy

madnes wrote: »

Normal 8 weeks for an answer.

Might not be as long as that. It's 5 days for an acknowledgement, 4 weeks for an initial response/holding letter, and 8 weeks for a final response.

For the sake of £150 you may find it's reinstated very soon...especially if you'd threatened to downgrade the account when making the formal complaint. Did you?

madnes

YorkshireBoy wrote: »

Might not be as long as that. It's 5 days for an acknowledgement, 4 weeks for an initial response/holding letter, and 8 weeks for a final response.

For the sake of £150 you may find it's reinstated very soon...especially if you'd threatened to downgrade the account when making the formal complaint. Did you?

Told them I would consider leaving to Natwest. With the Halifax who knows what they will do..

madnes

opinions4u wrote: »

An overdraft facility is repayable on demand.

They don't have to give a reason.

So £150 as a limit is adequate then.

It's £5 a day.

Hi Opinions for you, Just had an interesting conversation with a Risk Manager at the Halifax, she rang me after I emailed the CEO office. She advised that most overdrafts are being reviewed at the moment. She advised that my monthly avr overdraft is £80.00 a month therefore the reduction to £150.00.
She confirmed that the excuses I was given as there reasons by the advisor was incorrect.
My overdraft will stay at £300.00 she advised it is best to have a "Free Safety" net Then non at all.



Thanks to Both yourself and Yorskshire Boy for your advice.

dizziblonde

Think it's that time of year - they've just increased mine completely out of the blue after it sitting happily where it was for pushing the best part of 10 years. Never asked for a change, avoid going into the bank if at all possible - they just randomly upped it.

Shame all my direct debits are transferred over and I've just got the account mothballed with a small amount in it (enough to cover charges still to come out) until remaining overdraft charges work through the system.