Halifax Halifacts Halifiction

Robert_Sterling

Halifax Reward Current Account Overdraft.
No Hidden Fees
0% AER
There are no hidden fees. Yes this is a fact.
They actually tell you what the fees are.
They can be
Extortionate.
Example:-
If you have an overdraft of £1
The fee is £1 per day. i.e. £365 per annum.
If this was called interest rather than called a fee then the £365 interest would give an
APR > 36500%
The Halifax is avoiding the reqirement to state an APR on the overdraft by refering to the charge they make as a fee rather than as an interest charge.

P.S. If the overdraft is unauthorised then the fee is £5 per day if your overdraft is a £1
In this case the Halifax by calling it a fee rather than an interest payment manages to avoid having to say the the interest charge has an
APR > 182500%


See half page advertisemen in today's Sunday Times.

The Halifax say "With our simple, straightforward overdraft fees it is easy to work out how much using your overdraft will cost. If only all overdrafts were so simple."

noh

And your point is?

opinions4u

Example:-
If you have an overdraft of £1
The fee is £1 per day. i.e. £365 per annum.

There's a £10 buffer zone. The fee would be nil .

What do they claim their AER to be on the £5 Reward payments when the balance is nil? It's not as if they're plugging infinity% is it?

They behave openly on positive and negative balances.

Comyface

Sorry Robert, I must say I think this subject has been 'done to death' as it were.

Robert_Sterling

noh wrote: »

And your point is?

Obvious to some but not to all evidently.

noh

Robert_Sterling wrote: »

Obvious to some but not to all evidently.

So what is your point?

rb10

Halifax cannot possibly call it interest, for the simple reason that it is not interest.

According to the Oxford English Dictionary, interest (in this sense) is:

Money paid for the use of money lent (the principal), or for forbearance of a debt, according to a fixed ratio

And as this fee is not calculated according to a fixed ratio, it would be misleading to call it interest. They might as well call it 'bananas' as 'interest'.

So they are hardly 'avoiding the reqirement to state an APR on the overdraft by refering to the charge they make as a fee rather than as an interest charge'.

They describe it exactly how it is. There is no interest at all, either credit or debit. Instead there are fixed daily fees and fixed monthly Reward payments. In no way do they attempt to hide either of these facts.

I assume from your post that you use an overdraft frequently. In that case, it would clearly be better for you to find a different current account, or change your behaviour so that you can benefit from the £60/year in Reward payments.

Lokolo

Robert_Sterling wrote: »

Obvious to some but not to all evidently.

And thats the fault of the ignorant reader who doesn't read the T&Cs? Or the bank that supplies them?

rb10

Lokolo wrote: »

And thats the fault of the ignorant reader who doesn't read the T&Cs? Or the bank that supplies them?

The thing is that their charging and Reward structure isn't hidden away in a clause of the T&Cs!

They are completely clear about it wherever they promote this account. There is no way that someone could have opened this account and not know how it works.

Robert_Sterling

comyface wrote: »

sorry robert, i must say i think this subject has been 'done to death' as it were.

ok........................

Robert_Sterling

rb10 wrote: »

I assume from your post that you use an overdraft frequently. .

You could not be more mistaken in your assumption.