Halifax Overdraf cancelled - No notice

misssarahleigh

If i could please have some advice. My friedn ahs a £900 overdraft facility on his account with Halifax.

He recieved his wage yesterday and went to get some money out but couldn't. After calling Halifix they told him his overdraft had expired, they apologised that no letter was sent and there was nothing they could do.

He is currently minus £250, the problem being he now doesn't have a penny to his name.

Are they allowed to do this as it seems unreasonable to leave him totally without any money whatever.

Any advice appreciated

UnderPressure

Unfortunately I think they can, Im sure there is generally a cluse somewhere saying something along the lines of "borrowing is repayable on demand", it does seem a tad harsh they gave him no warning though.

Could it be it was an agreed overdraft for an agreed amount of time? If so has he tried re-applying for one? The bank wont be too happy though if hes has been consistently living in the overdraft which is how it looks, if he had a £900 overdraft and his wages went in and it still leaves his account 250 o/d ?? Is that right?

Im sure someone more knowledgable than me will be along soon so keep an eye on this thread, has he spoken to them and asked why he had no notice?

misssarahleigh

The lady on the phone said she could not re-apply for the overdraft. although he has no reccolection of ever being told his overdraft was for a set period of time. He has bank with halifax for many years.

He was having trouble with money and a few months ago was at the 900 limit, although has been paying it back bit by bit (he gets paid weekly, so not like he's had loads paid in and still 250 down).

Can they actually leave you penniless. What about the hardship rules or something?

noh

UnderPressure wrote: »

Could it be it was an agreed overdraft for an agreed amount of time? ................

Yep thats it.
Overdrafts from HBOS are for a fixed period of 1 year. Usually the customer receives a letter 1 month prior to expiry informing them that the overdraft is about to expire and if no change in circumstances offering a new overdraft for the next 12 months.
The OPs friend didn't receive that letter.
He knew 12 months previously that it was due to expire on that date.

misssarahleigh

noh wrote: »

Yep thats it.
Overdrafts from HBOS are for a fixed period of 1 year. Usually the customer receives a letter 1 month prior to expiry informing them that the overdraft is about to expire and if no change in circumstances offering a new overdraft for the next 12 months.
The OPs friend didn't receive that letter.
He knew 12 months previously that it was due to expire on that date.

No he did not know it was going to expire.

although he has no reccolection of ever being told his overdraft was for a set period of time.

was in my first sentance. He has had an overdraft for many years with his account and have never had to take any action to renew it.

opinions4u

misssarahleigh wrote: »

No he did not know it was going to expire.

was in my first sentance. He has had an overdraft for many years with his account and have never had to take any action to renew it.

Halifax overdrafts have been renewable annually since 2007 and their letters have clearly stated the fact.

He needs to read what is sent to him.

Can they actually leave you penniless.

I'd suggest he was technically penniless when he started using the overdraft.

What about the hardship rules or something?

They're not a charity and are not obliged to lend him money if they don't want to. He could argue that they should be a little bit more helpful to the circumstances that he now finds himself in and if he is speaking to the right department I would expect him to be able to reach an agreement to clear the debt while still using the account.

misssarahleigh

wow. you lot are clearly helpful.

clealry by your attitudes none of you have ever made a mistake or needed any help.

opinions4u

misssarahleigh wrote: »

wow. you lot are clearly helpful.

clealry by your attitudes none of you have ever made a mistake or needed any help.

So does an answer that explains the facts and give your friend a way forwards (speak to the right department) not get considered helpful in your world?

Just because an answer doesn't tell you what you want to hear doesn't make it unhelpful.

noh

misssarahleigh wrote: »

wow. you lot are clearly helpful.

clealry by your attitudes none of you have ever made a mistake or needed any help.

I dont know what you are expecting.
opinions4u has given you a factual answer and some helpful advice in his post above.

david39

I think the posts above were stating what was obvious, not having a dig at your friend. It is not the people who have replied to you who are making the problem and nobody can wave a magic wand to make the situation go away.

Your friend has clearly lived beyond his means because he is using his overdraft facility for his day-to-day living and I think from what you say that he is now in hock to the bank for the overdraft plus another unauthorised £250. I expect the bank have recognised this and that is why they have taken the action they have in order to reduce the amount of money that they have at risk.

The most helpful advice given so far, and I'm sure it is the only possible course of action for him, is for your friend to make an appointment with the bank, explain the problem he now has, and politely ask for some assistance to get himself out of the hole he has dug.

The answer that the bank might give is to offer him a personal loan to cover the money he owes. This will then make sure that the bank earns an acceptable level of interest whilst at the same time gradually reducing the money he owes - that will be good for him in the long run.

However, the bank might view it that they would prefer to keep their risk at £250 and not advance him further money - which is why he needs to treat any interview with them with a polite attitude.

misssarahleigh

noh wrote: »

He knew 12 months previously that it was due to expire on that date.

I have a halifax overdraft and never knew this, nor have i recieved any documentation regarding this. I took this comment in bad faith as they were assuming somebody had the knowledge and implying their ignorant for not realising.

opinions4u wrote: »

Halifax overdrafts have been renewable annually since 2007 and their letters have clearly stated the fact.

He needs to read what is sent to him.

I'd suggest he was technically penniless when he started using the overdraft.

I had already send no letter was sent (so he can't read it)

I have never had a letter that clearly startes that.



I have personally been a user of the mse forum for some time and the post i replied with about being unhelpful was due to the tone of the replies sent.

They were all negative, implying my friend should have know, he was basically stupid and tough luck.

What i wanted was a little help in regards to legislation. is it legal for the bank to leave somebody without access to money (even though technically the money is not his)

Since they admitted no letter was sent should he have had formal notification. I personally have never recieved any information regarding the overdraft being renewable. Neither has my mother who also has a Halifax account,

As well as for reasons for them to close the account on renewal.