halifax , overdrawn and no charges

diggerman123

nearly fell through the floor yesterday when i got a letter from halifax (easy cash account ) saying that my account was £5.80 overdrawn , but because it was less than £10 there would be no charges. it was my mistake as i forgot my AA membership was due out by dd.
has someone fed them a happy pill or something or have they introduced a buffer zone ?
i am amazed that they let the payment go through , but thanks halifax :beer:

Azrael_1701

diggerman123 wrote: »

nearly fell through the floor yesterday when i got a letter from halifax (easy cash account ) saying that my account was £5.80 overdrawn , but because it was less than £10 there would be no charges. it was my mistake as i forgot my AA membership was due out by dd.
has someone fed them a happy pill or something or have they introduced a buffer zone ?
i am amazed that they let the payment go through , but thanks halifax :beer:

you probably have a £10 "shadow overdraft" as some accounts do...

diggerman123

they once charged me £15 for going 30p overdrawn on the same account so have they changed the t & c s then cos i have had no letter

Azrael_1701

diggerman123 wrote: »

they once charged me £15 for going 30p overdrawn on the same account so have they changed the t & c s then cos i have had no letter

nah its nothing to do with t&c. some accounts have whats called a "shadow overdraft". its basically a hidden o/d limit that's put on an account to act as a 'buffer'. its never more than £10, and can be put on or removed at any time without notification.

diggerman123

thanks AZ . you learn something new every day ..............

Azrael_1701

diggerman123 wrote: »

thanks AZ . you learn something new every day ..............

no problem! just don't rely on it always being there....

jambosans

Unusual, the Easycash is a basic bank account, with no overdraft facility (this includes any so called "shadow limits"). It is possible to cause a basic bank account to go overdrawn due to a debit card payment, however it is extremely rare. A Direct Debit should fail, and you would be subsequently charged a £15 Unpaid Item Fee.

Halifax current accounts do have a "fee free buffer zone" (i.e. "shadow limit") for the first £10 of an arranged or unarranged overdraft. Are you sure the payment was taken via Direct Debit? Or perhaps, you have a current account (with Visa Debit, not Electron) which would allow an unarranged overdraft caused by a Direct Debit.

Azrael_1701

jambosans wrote: »

Unusual, the Easycash is a basic bank account, with no overdraft facility (this includes any so called "shadow limits"). It is possible to cause a basic bank account to go overdrawn due to a debit card payment, however it is extremely rare. A Direct Debit should fail, and you would be subsequently charged a £15 Unpaid Item Fee.

Halifax current accounts do have a "fee free buffer zone" (i.e. "shadow limit") for the first £10 of an arranged or unarranged overdraft. Are you sure the payment was taken via Direct Debit? Or perhaps, you have a current account (with Visa Debit, not Electron) which would allow an unarranged overdraft caused by a Direct Debit.

All accounts used to have a shadow limit, these limits should have been removed, but there are some accounts that do still have them. Any recent accounts should NOT have the shadow buffer limit.

jambosans

Azrael_1701 wrote: »

All accounts used to have a shadow limit, these limits should have been removed, but there are some accounts that do still have them.

Perhaps you're right. My understanding was the Easycash is a newer incarnation basic bank account and therefore has never carried an overdraft facility of any description. The Cardcash however, which in its current form is marketed as a basic bank account for 16 to 17 year olds, historically could carry an overdraft.

Azrael_1701 wrote: »

Any recent accounts should NOT have the shadow buffer limit.

The £10 fee free buffer was introduced following the changes to the Halifax/ Bank of Scotland current account's (with the exception of the Student Current Account) charging structure in December 2009. The below MSE Article details the £10 buffer:-
http://www.moneysavingexpert.com/news/banking/2009/10/how-to-beat-halifaxs-overdraft-chagres

Confirmation of buffer by HBOS spokesperson:-
http://news.bbc.co.uk/1/hi/business/your_money/8334744.stm

It may not be written into the terms and conditions but it does exist.

Azrael_1701

jambosans wrote: »

Perhaps you're right. My understanding was the Easycash is a newer incarnation basic bank account and therefore has never carried an overdraft facility of any description. The Cardcash however, which in its current form is marketed as a basic bank account for 16 to 17, historically could carry an overdraft.

The £10 fee free buffer was introduced following the changes to the Halifax/ Bank of Scotland current account's (with the exception of the Student Current Account) charging structure in December 2009. The below MSE Article details the £10 buffer:-
http://www.moneysavingexpert.com/news/banking/2009/10/how-to-beat-halifaxs-overdraft-chagres

Confirmation of buffer by HBOS spokesperson:-
http://news.bbc.co.uk/1/hi/business/your_money/8334744.stm

It may not be written into the terms and conditions but does exist.

I deal with all the accounts on a daily basis, i have seen people being charged for being as little as 5p over their limit, as far as i have seen since i have been with HBoS is that there isnt a buffer for accounts that dont have a shadow (most of them dont). I may, however, be wrong, but even if someone was overdrawn by 5p and got charged, unless they met the charging policy criteria they would defiantly not get it refunded anyway.

jambosans

Azrael_1701 wrote: »

I deal with all the accounts on a daily basis, i have seen people being charged for being as little as 5p over their limit, as far as i have seen since i have been with HBoS is that there isnt a buffer for accounts that dont have a shadow (most of them dont). I may, however, be wrong, but even if someone was overdrawn by 5p and got charged, unless they met the charging policy criteria they would defiantly not get it refunded anyway.

Perhaps historically customers were charged, however this buffer does exist, and I've sourced an official statement from HBOS confirming so.

You need to appreciate that the anonymity of MSE gives little weight to signatures or posts which declare who you work for. Bank employees can provide useful insight, but should not rely on "I know better because I work for them" when countered with a sourced piece of information. Short of MSE'ers phoning Telephone Banking (by all means, 08457 20 30 40) to ask, I have provided the only credible source.

This reply is not intended to offend, just to give you an understanding of the impression posts such as the above give.