Unauthorised overdraft on a Halifax current account

ep1987

I used my debit card to purchase groceries at Asda and then later
at Tescos when buying some christmas presents; both payments went through fine.

Two days later i checked my balance online and realised that i was now overdrawn (i had £10 less in the account than i thought, thus the purchases had taken me into the red).

I paid off my overdraft when the new charges came in and turned off the facility. I thought the only way that i could become overdrawn was via direct debit payments.

After explaining my situation on the phone i was told that i would have to re-authorise my telephone banking in branch and then they would see what they could do (with her tone indicating that i would have to pay).

So that night (Friday) i braved the cold and took a 1 1/2 hour round trip to deposit some cash into the account via an ATM. However this did not clear until the following week and i am wondering whether there is any way i can avoid paying £20+ in charges.

Quite frankly i do not have that sort of money to throw down the drain (am currently out of work) and do not believe that the charges are justified.

Is there anything i can do?

opinions4u

i had £10 less in the account than i thought

If the overdraft amount was for less than £10 you won't be charged.

Have you actually been charged?

If you have been charged, a polite call to beg for mercy is my best suggestion.

(You can also register for text updates to warn you when you exceed an agreed limit).

molerat

You are responsible for use of the card. Retailers have different floor limits before they seek authorisation, some have £0 and some have £50, so it is down to you to ensure you have the funds available.

ironlady2022

Unfortunately paying direct debits off is not the only way to go overdrawn. You can ring up politely and point out (if this is true) that you have been a loyal customer and you have never before gone overdrawn then maybe they could wave this - but I doubt it! Alternatively you can switch over to Cooperative as their charging system is, if you have not been overdrawn in the last year, then they waive the charges as they understand people make mistakes! Plus they are the only ethical bank on the high street, and not greedy like the bigger banks.

opinions4u

Plus they (Co-op) are the only ethical bank on the high street, and not greedy like the bigger banks.

This is the bank that pays 0.25% on their children's account.

This is the bank that has an SVR of 4.24% for its mortgage customers, compared to the 2.5% charged by some others.

This is the bank that pays 0.5% on its cash ISA and doesn't have a better option that existing or new customers can transfer to.

The Co-operative movement has close links with the Labour Party who created the debt crisis the nation is currently trying to recover from.

They may have some lovely guiding principles, but they are a million miles from perfect.

vanilla8

halifax waived my husbands charges when he first went overdrawn - as it was his first time. He just rang up and spoke to someone.

ep1987

Right so i guess i'll ring them up and point out that this was my the first time that i have been into the unauthorised overdraft and then if that doesn't work demand a reduction in the charges based on the £1 a day rate.

opinions4u

ep1987 wrote: »

Right so i guess i'll ring them up and point out that this was my the first time that i have been into the unauthorised overdraft and then if that doesn't work demand a reduction in the charges based on the £1 a day rate.

Personally I wouldn't recommend demanding anything.

ironlady2022

opinions4u wrote: »

This is the bank that pays 0.25% on their children's account.

This is the bank that has an SVR of 4.24% for its mortgage customers, compared to the 2.5% charged by some others.

This is the bank that pays 0.5% on its cash ISA and doesn't have a better option that existing or new customers can transfer to.

The Co-operative movement has close links with the Labour Party who created the debt crisis the nation is currently trying to recover from.

They may have some lovely guiding principles, but they are a million miles from perfect.

For your information I never said that they were perfect but an alternative. As obviously Halifax has not given him a chance. As with the children's accounts adminittedly they are low, but at the end of the day they gotta make SOME money. Also they are a Mutual which means they are self sufficient and has never borrowed from other banks to lend to their customers. They don't give out big bonuses like the bigger high street banks. They were also voted the Best Financial Services Provider last year amongst the economic crisis. And can I just add they had a 1.99% tracker mortgage on the base rate with NO FEES to apply or to pay off early! If you've read the newspapers in the last 18 months you will see that the Cooperative bank has conducted themselves brilliantly. Which other bank would donate £50k to the Haiti appeal???

mjm3346

mayling03 wrote: »

If you've read the newspapers in the last 18 months you will see that the Cooperative bank has conducted themselves brilliantly. Which other bank would donate £50k to the Haiti appeal???

By charging more than they need to and/or setting deposit interest rates too low they have given away £50k that should have gone to their customers.

Doesn't make them any worse than the supermarkets with their "things for school" etc but it is nothing special, it is money from customers that is being given away.

opinions4u

mayling03 wrote: »

As with the children's accounts adminittedly they are low, but at the end of the day they gotta make SOME money.

Exploiting children is the way to do it?

Also they are a Mutual which means they are self sufficient and has never borrowed from other banks to lend to their customers.

This link suggests otherwise. "Access to wholesale markets allows the Co-operative Bank to supplement the supply of retail funds"

They don't give out big bonuses like the bigger high street banks.

This link tells a story about Neville Richardson's "pay and bonuses" increasing by 98% in 2009 compared to 2008. If he's earned his £1m income, that's fine by me. But I'd suggest he earns more per customer than the head of Lloyds, the head of RBS, the head of Barclays etc.

And can I just add they had a 1.99% tracker mortgage on the base rate with NO FEES to apply or to pay off early!

I'll take your word for it. I can only find a 2.99% tracker mortgage which has an ERC that runs for over 3 years.

Which other bank would donate £50k to the Haiti appeal???

25p per death. Citigroup $2m. Morgan Stanley $1m. HSBC £1m. Lloyds claim their staff raised over £2m for various charities and local community causes. Barclays came up with £500k for Haiti.

Look, I've no real problem with Co-op Bank. They're a competitive force that banking needs, espeically with giants like Lloyds Banking Group owning every other brand in the market place.

I just find their holier than thou claims irritating. They pay poor interest to savers, take court action against grannies who don't repay their debts and charge customers large fees when they don't manage their current account responsibly. The aren't that different to any other bank.

As obviously Halifax has not given him a chance

In post #2 I asked "Have you actually been charged?". The OP hasn't clarified that yet. Perhaps the £10 no charge buffer that Halifax have on their account is considered "a chance" by others.