Bank have increased my overdraft

jonesMUFCforever

sprinter11 wrote: »

I can't believe some off the replies on this thread,do you all ,or are most of you ex bank or current employees in particular Halifax,this is unreal.

I wil give you the proper answer to your question Jen Jen,the banks are purely and simply trying to get you to use your overdraft using the psychological approach,whereby if you see it there in your balance you think that it's yours ,very clever tactic by them,phone them and tell them to remove the not asked for increase,yet more uncalled for down right gutter tactics from HSBC..DITCH EM

No different to any other retailer - your local supermarket offering you a loss leader to entice you in or the forever DFS sales etc etc.

sonytv

They done the same to me. £100 was the choice of overdraft i'd had for years. £850 was what they changed it to without permission. I phoned to reduce it as you cannot reduce it online and complained that the only way to change it back was to call or go in branch. The man i spoke to said the option to reduce online had been removed because people had accidentally set it £0.00 and had trouble increasing it again. I think it is a con to make people think they've got more than they have, and so have a bigger chance of slipping into their overdraft and being charged their huge fees. Haven't been keen on halifax for years now and seriously thinking of changing to another bank.

chexum

Fiddlestick wrote: »

Even if they have increased it, you don't *HAVE* to use it...

Absolutely - the only issue is that if it's reported to the CRAs, it *may* influence the credit rating (as the available credit is compared with the total used credit and the income too).

However, while this point is technically correct, Halifax would not give an o/d increase if the current rating and the account turnaround would not warrant it, so unless it's completely in error, there should not be any adverse consequences for it.

Especially if they also communicate how to put it back and it's really not too convenient, but it looks like it is somewhat...

ERICS_MUM

Blimey, if only my problems were so easily resolved.

rbmjmw

Hello, the cynic in me considers this a move by Halifax to lure people into using their overdraft on current accounts. I have a current account and the interest is £1 a day no matter how much into your overdraft you are. I was £7 over (my mistake) and I was charged £1 a day for a month. By increasing your overdraft I consider that they are trying to entice people into using it as even one days use provides the Halifax with an income of £1 or £5 if you go over your agreed (or in some cases it would seem non agreed limit). I always found it funny the Halifax maintaining an overdraft with a £1000 limit when absolutely no money was paid into my account for over two years. The £7 mistake I made was my fault it just seems that any letters from Halifax on this bypassed me. I believe they have some current accounts that do not incurr this charge but I dont know which ones these are. Anyway I had been a regular customer for over 20 years but not after this!

jambosans

rbmjmw wrote: »

Hello, the cynic in me considers this a move by Halifax to lure people into using their overdraft on current accounts. I have a current account and the interest is £1 a day no matter how much into your overdraft you are. I was £7 over (my mistake) and I was charged £1 a day for a month. By increasing your overdraft I consider that they are trying to entice people into using it as even one days use provides the Halifax with an income of £1 or £5 if you go over your agreed (or in some cases it would seem non agreed limit). I always found it funny the Halifax maintaining an overdraft with a £1000 limit when absolutely no money was paid into my account for over two years. The £7 mistake I made was my fault it just seems that any letters from Halifax on this bypassed me. I believe they have some current accounts that do not incurr this charge but I dont know which ones these are. Anyway I had been a regular customer for over 20 years but not after this!

It's been repeatedly stated on here, and by Halifax* directly that all their current accounts carry a fee free buffer for the first £10 you go arranged or unarranged overdrawn - so I would contact them and challenge them on this.

As for the cynic in you, I disagree, and I think your logic is flawed. Ultimately if you hold a current account you can go overdrawn whether it be arranged or unarranged. Going into an arranged overdraft is cheaper than going into an unarranged overdraft (at £5 per day). An arranged overdraft (at £1 or £2 per day) is therefore the lesser of two evils.

It's also far more lucrative for Halifax to be earning £1 per day on a £500 overdraft, than say a £2000 overdraft. The higher your overdraft, the better value for money the overdraft becomes. Which is completely contrary to your suggestion.

*I will try and source the link for this.

pqrdef

daniel598 wrote: »

I have never read so much rubbish in my life. Yes your correct in saying that there is employees as I am a current employee for LBG atm but in no way is this a tactic from the bank to lure people into spending.

Of course it is. Same as the credit card companies used to increase limits without being asked, until they were told to stop doing it.

When I look at my bank account online, I want to know how much I can spend without going overdrawn. That figure is never there. I see my current statement balance, but that's unreliable because it ignores payments in progress. And the other figure shown is "available to spend". This does take account of authorisation holds - but it also includes the overdraft limit.

These things are very carefully worked out. And most employees are not told what the bank is up to or the true reasons for a lot of the things it does.

bengal-stripe

pqrdef wrote: »

Of course it is.....When I look at my bank account online, I want to know how much I can spend without going overdrawn. That figure is never there. I see my current statement balance, but that's unreliable because it ignores payments in progress. And the other figure shown is "available to spend". This does take account of authorisation holds - but it also includes the overdraft limit.

Are you not capable of deducting one from the other figure?

(particular as the overdraft will be a round sum of £200.....£300.....£1000..............whatever.)