Halifax Overdraf cancelled - No notice

RHB

misssarahleigh wrote: »

is it legal for the bank to leave somebody without access to money (even though technically the money is not his)

Its the bank money and repayable on demand, so basically yes. "Access to money"/credit isn't a human right. "Technically" the money isn't his?!

Get through to the right department and maybe asked if it can stepped down in two stages to £0?

mjm3346

misssarahleigh wrote: »

Since they admitted no letter was sent should he have had formal notification.

Probably not, same as when a credit card has the limit cut they don't usually tell the person in advance to stop them maxing it out, in this case your friend could have had his money paid into another account if he had been given notice (I am not suggesting he would have done but by not telling him the bank remove the risk that he would).



Not sure if he has a legal entitlement to access at least some of his money to live on (or the banks money for those who prefer looking it that way) but he has nothing to lose by asking them, might be worth a shot asking the CCCS if he has a right to at least some living expenses.

https://forums.moneysavingexpert.com/discussion/1231527


If he doesn't get anywhere he should look at getting another account or he will probably lose the remaining £250 the next time money goes in (suggested in the same spirit as the actions by the Halifax)

Lokolo

misssarahleigh wrote: »

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.



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.

Terms and Conditions change. They have changed and informed by letter, this is the letter they are on about.

Letters were sent out a while ago because of their change in Overdrafts (such as £1 per day interest etc.).

If you or any other Halifax customer who is complaining about this, had read the T&Cs of your account you would know overdrafts are repayable on demand.

This means the bank can withdraw the overdraft without notice.

Overdrafts should be used for short term lending, not long term. This is one of the biggest reasons for overdraft removal.

The only thing this person can do is pay the amount owed off, either via borrowing money from a friend or setting up a repayment plan.

misssarahleigh

thanks for the further advice.

He has struggled over the year making some bad choices, this again just reminds me that banks can do as they wish whenever they want.

I find it unfair that notice isn't given, even though this is in the terms and conditions as it does create a big mess for people.

opinions4u

misssarahleigh wrote: »

I have a halifax overdraft and never knew this, nor have i recieved any documentation regarding this.

One of the amazing things I discovered during 15-20 years of working in a bank branch was the number of customers who said they never got a letter over something.

Despite the fact that the audit trail back to the warehouse could actually prove dispatch.

Now I know that the occasional story of postmen living in flats with 70,000 undelivered letters do get reported, but these are few and far between.

The letters are despatched and they are received. Be it via the online paperless system or through snail mail.

If the customer bins it as junk mail who's fault is it?

The number of times they denied having recieved a letter and then brought it in the following day was extraordinary.

I took this comment in bad faith as they were assuming somebody had the knowledge and implying their ignorant for not realising.

Take it the way you like. He will have had a renewal letter in 2008 and 2009. It would seem they didn't want to renew in 2010.

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.

Factual and to the point is not unhelpful.

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

He has ignored mailings from his bank. So have you. You can argue that you never received them all you like, but I'm afraid that you will have received them and not taken in what they mean. It's a negative situation. Don't expect glowing excitement in response to it!

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)

I answered that in the post that offended you. Debt is not a legal right.

You can be upset. You can claim you never knew an overdraft was renewable annually or repayable on demand. You can claim you've never seen the terms and conditions and you can claim the moon is made of cheese.

It doesn't change the situation your friend is facing. He owes money, has no overdraft limit and as such needs to engage the bank in a conversation that will help him to manage his finances as well as meeting the bank's need to stop being overdrawn.

simax

Well said that man! :T

vaporate

david39 wrote: »

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.

What then? Starve?

Other than claiming more benefits, if possible, I see no other reason to use it. Not everyone is a greedy so n so who want want want...People...

Ignorance. If only people 'knew' what goes on in other peoples lives.

withnell

misssarahleigh wrote: »

He has struggled over the year making some bad choices, this again just reminds me that banks can do as they wish whenever they want.

Surely the fact that they still allow him to owe them £250 means they're being more supportive than sendig the baliffs round?

There is no right to an overdraft, and I must support all comments above, i have 2 years worth of letters from the START of the year whch clearly state an expiry date for the overdraft in a years time