Halifax overdraft charges

generalgort

Hi Guys,

I have just received a letter from Halifax re a current account, basically it says that they have 'allowed' the account to go overdrawn and will be charging £5 a day.

Whilst I have no argument with the fact that I have been informed in advance of the charges for going overdrawn, and it was my action rather than the bank's which precipitated this situation, what does annoy me is the fact that the debit which they 'allowed' which took the account overdrawn was for a Halifax credit card payment. The account is now overdrawn £30:90p.

Last month they refused a direct debit which would have made the account overdrawn by 10p, but of course it was not a payment to one of their own companies.

They have complete control over the account, no cheques have been used with this account for about two years, anyway the payment was by debit card over the phone to Halifax credit card, and they have control over electronic payments, card payments, direct debits, standing orders etc, also they have admitted in their letter that it was their decision to allow the payment, are they allowed to charge for an overdraft that they created?

It does seem as if they have deliberately 'allowed' this payment to one of their own companies to make money, if that is so then surely the legality of this action must be questionable,

Sorry for the rant,

Phil.

noh

You have complete control over your account.
You created the overdraft by making the request for them to pay an amount greater than your balance.

opinions4u

Have you considered taking responsibility for your own financial management?

The decision to pay (or otherwise) is electronic. There's no conspiracy.

But you have given them the opportunity to make a decision that doesn't suit.

Of course, if they hadn't made the payment you'd have probably had a £12 charge on the credit card instead.

blueberrypie

generalgort wrote: »

They have complete control over the account, no cheques have been used with this account for about two years, anyway the payment was by debit card over the phone to Halifax credit card, and they have control over electronic payments, card payments, direct debits, standing orders etc, also they have admitted in their letter that it was their decision to allow the payment, are they allowed to charge for an overdraft that they created?

They didn't create the overdraft - you did. And while they are allowed to allow or refuse any payment that would take you overdrawn, it's a computerised decision, as opinions4u has said.

So no, you don't really have a leg to stand on in fighting it. Given that it is a *per day* charge, get the account back out of the overdraft as quickly as possible. If you cannot get the £30ish into it in the next three days, consider upgrading it to an Ultimate Reward Account - you will be charged £12/month for this, but the first £300 of the overdraft is free, and you can downgrade back to a standard Reward Account as soon as the account is back in credit.

generalgort

Hi noh and opinions4u,

Thank you for your prompt replies, as you can both see from the following quote from my post I have actually taken responsibility for my actions.

generalgort wrote: »

Whilst I have no argument with the fact that I have been informed in advance of the charges for going overdrawn, and it was my action rather than the bank's which precipitated this situation,

It is very disappointing that you both have failed to take this into account, especially as you both are members of long standing and have given very constructive advice previously.

The whole point of my post was that the Halifax does seem to choose who they do and don't pay, as for the comment that the decision to pay is electronic, I wonder what criteria they use that allows the payment to one of their own companies of a greater amount than that refused to an external recipient.

How can they justify allowing £30:90p, yet refusing 10p, the only difference being the recipient.

I would really appreciate it if you could help with the benefit of your experience,

Phil.

pinkdalek

Well they could have refused the credit card direct debit.

Then the credit card would have charged you £12 missed payment fee and then a £12 failed direct debit fee, it also may have affected your credit rating and if your credit card was on a 0% introductory offer you could have lost that promotion. Do the maths which is better off?

Sign up for mobile text alerts the bank will text you on the day you go over your arranged limit, if you can then depost funds into the account (can even be a cheque too!) then you will avoid the £5 per day fee.

On a different matter on the old charging system this would have cost you £30 for the direct debit being paid without available funds and a further £28 for going over your limit.

The Ultimate Reward account might benefit you in that if you stay within £300 overdraft it is free and you only pay £12.50 a month for the account, so if you are overdrawn for more than 12 days it is better to have this account, plus you still get a £5 reward if you fund it with £1000 per month.

It is up to the bank wether they pay the direct debit or not, the matter if it is their company or not is irrelivant to be honest, they have simply paid it so you avoid further fees on your credit card.

Comyface

I think the difference is that one was a direct debit and one was a debit card payment. The debit card payment went through probably because he balance of the account wasn't checked (below the floor limit probably) and the DD wasn't paid because the balance was checked.

I agree though, no conspiracy.

opinions4u

generalgort wrote: »

I have actually taken responsibility for my actions.

It is very disappointing that you both have failed to take this into account, especially as you both are members of long standing and have given very constructive advice previously.

The whole tone of your post blames the bank.

"they have 'allowed' the account to go overdrawn"

"They have complete control over the account"

Virtually every bank charge is a choice on behalf of the account holder. Usually a choice not to stay close to their finances.

(Perhaps registering for text messages when you go over your limit can help save you the £5 a day next time).

eschaton

generalgort wrote: »

Hi Guys,

I have just received a letter from Halifax re a current account, basically it says that they have 'allowed' the account to go overdrawn and will be charging £5 a day.

Whilst I have no argument with the fact that I have been informed in advance of the charges for going overdrawn, and it was my action rather than the bank's which precipitated this situation, what does annoy me is the fact that the debit which they 'allowed' which took the account overdrawn was for a Halifax credit card payment. The account is now overdrawn £30:90p.

Last month they refused a direct debit which would have made the account overdrawn by 10p, but of course it was not a payment to one of their own companies.

They have complete control over the account, no cheques have been used with this account for about two years, anyway the payment was by debit card over the phone to Halifax credit card, and they have control over electronic payments, card payments, direct debits, standing orders etc, also they have admitted in their letter that it was their decision to allow the payment, are they allowed to charge for an overdraft that they created?

It does seem as if they have deliberately 'allowed' this payment to one of their own companies to make money, if that is so then surely the legality of this action must be questionable,

Sorry for the rant,

Phil.

After your near miss last month - was it not a warning for YOU take take better control of your finances?

Looks like YOU didn't learn.

DavidHayton

The Halifax's overdraft charges are shocking. So I don't overdraw my Halifax account. Simple!

David