Help with Halifax overdraft please?

iclayt

Firstly I apologise if this kind of thing gets asked a lot but I am a bit clueless about banking rights and regulations, and it's all getting a bit stressful, so any help is appreciated.

I have two accounts with Halifax. One current, one student. The current one is in credit, with an overdraft limit of £500, which I never go into. The student account is overdrawn around £1600, within a limit of £2000 and it's this one I'm having problems with.

I'm on JSA at the moment which is paid into my current account and it's that one which all DDs go out of, etc. I don't use the overdrawn student account at all and haven't for over 8 months.

I originally had to have the full amount repaid by last January but as I was out of work, some begging and pleading on the phone to the Halifax call centre meant they extended this for another year for me, giving me until Feb 2011 to pay the full amount back providing I didn't debit from the account anymore. I thought I would be back in work pretty soon and anticipated paying it off fairly quickly so this seemed fair to me.

However, aside from some temporary work a few months back, I've been on JSA since and really struggling to stay in credit in one account, let alone pay off the student one - but I haven't withdrawn any from it, and paid off four hundred to bring it to the current £1600.

Halifax have now sent me a letter saying that from September this account will now revert to an ordinary current account and will be liable for their (ridiculous) £1 a day overdraft charge. The call centre and in-branch are not interested in hearing that I was given until February and are not interested that I am on a limited income, or that I've paid some off when I could afford to and would do so again.

I understand they can change their mind as and when they like, I'm not that naive - but perhaps I was naive in hoping for a little human nature somewhere in the Halifax machine. I know I owe them the money, I want to repay it, but how to they expect me to do that by adding another £30 to the debt a month?

I'm worried they're going to reclaim the small amount of money in my regular current account and put it towards the other debt. This will just leave me with two overdrafts and even more up a certain creek.

Are there any alternative ways for me to pay this off? Transfer it somewhere with a better interest rate? Negotiate freezing it somehow?

Should I consider changing my other account to another bank so that they can't reclaim it? Any suggestions?

I have a fairly good credit rating and don't want this to be affected. I'm lucky to have no other debts other than student finance, no credit cards/store cards etc. I'm trying really hard to find work but I'm lucky enough to live in a place recently voted one of the worst places to find work in the UK - yay.

I have no idea what to do about this, any advice? Thanks!

iclayt

Anyone, please?

scottishblondie

I'd suggest you open an account with another bank not linked to Halifax. Use this account to receive your JSA and pay your bills, and close the account with Halifax that is in credit (I don't know closing it is strictly neccessary, but it's what I would do). Make token payments towards the OD, and continue to negotiate with them.

I'd also suggest you look on the up your income board, and try things like the daily clicks and using cashback sites for free trials etc (being careful to cancel before any charges!!), and survey sites. The money for individual things might seem small but it all adds up. I make around £4 a week on daily clicks, but others who are more dedicated make a lot more!!

iclayt

scottishblondie wrote: »

I'd suggest you open an account with another bank not linked to Halifax. Use this account to receive your JSA and pay your bills, and close the account with Halifax that is in credit (I don't know closing it is strictly neccessary, but it's what I would do). Make token payments towards the OD, and continue to negotiate with them.

Thanks for replying.

What has suddenly worried me is whether or not I'll even be able to open an account with another bank while I'm out of work? So many of them seem to want minimum payments per month, or have I got that wrong?

Does anyone have a suggestion for a bank/service that isn't likely to reject me but still has all the usual DD, debit card facilities etc?

Consumerist

iclayt wrote: »

Does anyone have a suggestion for a bank/service that isn't likely to reject me but still has all the usual DD, debit card facilities etc?

You could start the ball rolling here.

If your credit record is good at the moment then you should have no problem.

I suggest you get another account for your income as quickly as possible, for the reason you fear - the bank is very likely to take your income as soon as they can.

Good luck.

Edit
Obviously, you should avoid any other Bank of Scotland Group banks.

iclayt

Consumerist wrote: »

You could start the ball rolling here.

If your credit record is good at the moment then you should have no problem.

I suggest you get another account for your income as quickly as possible, for the reason you fear - the bank is very likely to take your income as soon as they can.

Good luck.

Edit
Obviously, you should avoid any other Bank of Scotland Group banks.

Thanks - I think I'll go with Natwest.

Any hints on negotiating tactics with Halifax? I'm on £65 per week, I can't promise them very much in terms of minimum repayments but will they accept something rather than it turn nasty? I think it depends who you get on the phone sometimes.

vicki1986_2

The reason it is changing to a 'normal' account from a student account may well be because the time scale of having a student account is limited. You should only have this account for 1 year after the graduation date you supplied the bank with. It most probably will not be related to the unpaid overdraft.
In regards to the overdraft the only possible option is having them agree a weekly/monthly repayment and have them freeze the account.

Vicki.

questionabout

iclayt wrote: »

Thanks - I think I'll go with Natwest.

Would also recommend Barlcays basic CashCard with Visa Debit account. You only need 1 form of ID to open it, theres no credit score check or employment criteria and you can just tell them you want a 2nd account to manage your bills which they will be fine with. Theres no credit options available with this account like an Overdraft or cheque book but by the sounds of it you don't need or want one.

The reason I recommend Barclays is the account can be open within 30 minutes in Branch same day, but if your apply with Natwest, make sure you do so in Branch because it can take a few weeks if you do it online. Good luck