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Recent bank charges with Halifax

Hey everyone,

Just wanted to make a quick query about some bank charges I've recently received from Halifax. Basically, the other day I unwittingly went over my overdraft limit, my debit card transaction at Tesco went through a few days after I'd been, so when I'd checked my bank balance the day before going overdrawn I thought it had already taken this into account, so I didn't pay anything more into this account.

Anyway as it was I went briefly overdrawn before my pay went in, and have now received a letter saying I will be charged £20 for the payment itself, and then a further £28 for going overdraw. So £48 in total.

I'm a student, and in the summer I struggle to make ends meet as I don't get any support, but I still have my bills and mortgage to pay, so I'm not sure how I can afford this payment. So I'd just like to know if there is anything I can do. It just seems so excessive to charge me 50 quid for this. Even £28 seems a lot to me, as I have an account with RBS as well and when I went overdrawn with them they just charge a basic £5, when I queried this they said since the rulings over bank charges they have reduced the fee considerably.

So how can Halifax still charge me 50 just for going briefly overdrawn? I'm certain it probably IS in the terms somewhere of my account, does this mean I can't do anything? Even just the £20 would be better, but this is really causing me a problem and I feel very aggrieved by it.

Thanks in advance for any advice,

Laurie

Comments

  • Hiya Laurie,
    I've been complaining on this board as well about Halifax and received a letter in the post (basically) stating the following fees are charged:

    1. an unarranged overdraft fee of £5/day (charged at the end of the day)
    2. an arranged overdraft fee of £1/day (charged at the end of the day) for an overdraft limit under £2,500
    3. an arranged overdraft fee of £2/day (charged at the end of the day) for an overdraft limit over £2,500

    I'm assuming you have an overdraft of under £2,500 and at my best guess... you might have been in your overdraft for 28 days (see 2.) and for 4 days after that you were over your limit (see 1.) so they can argue that is stated in your credit agreement.

    It's still not fair, but it's the agreement... My best advice is to pay off the fees and as soon as you can and change accounts!

    HTH x

    Absence is as important as abundance.
  • dunstonh
    dunstonh Posts: 120,158 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    So I'd just like to know if there is anything I can do.

    If its your first error, most banks will refund as a goodwill gesture if you ask them nicely.
    So how can Halifax still charge me 50 just for going briefly overdrawn? I'm certain it probably IS in the terms somewhere of my account, does this mean I can't do anything? Even just the £20 would be better, but this is really causing me a problem

    It sounds like they have correctly levied their published charges after you took money from your account that you were not entitled to.
    I feel very aggrieved by it.

    It was your mistake and they publish their terms. If you dont like the terms then dont spend money you dont have. I know that is harsh but that is the situation. You have to have personal responsibility for your spending and how you budget and reconcile your finances. The bank is not there to do it for you. If you leave it to them and run your account close to your limit then you are inevitably going to be hit with these charges.

    Whilst you should get the money back if its your first time, as I mentioned, consider it a lesson in what happens if you dont control your finances. Better to find this out now when its a small amount and not when you start handling finances of much larger amounts.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • noh
    noh Posts: 5,817 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You probably have a Halifax student account.
    The charges you have incurred are a £20 paid item fee and a £28 unplanned monthly overdraft fee.

    They as you rightly say are the fees you agreed to, detailed on this page:-
    http://www.halifax.co.uk/bankaccounts/rates-rewards-fees/#fees

    As dunstonh says Halifax may refund the fees if it is your first error.
  • lauriedunsire
    lauriedunsire Posts: 2 Newbie
    edited 6 June 2011 at 9:52PM
    It is a student account and it is an overdraft of under £2,500. Unfortunately it isn't the first time, but I recall last time I got a single £28 charge, is the additional £20 a more recent thing?

    And is there any particular reason why/how Halifax charge so much? My other account with RBS is also a student account, with an overdraft roughly the same amount, but they only charged me £5 for the same thing.

    I understand it is still ultimately my fault, I shouldn't go over my limit, simple as. I just don't see how they can charge me twice for what seems to be essentially the same thing, going over my limit.

    Could I also enquire as to why there is a £10 charge option if a payment is rejected(as show on the halifax page posted by noh), when they don't seem to allow this to happen? I would have rather the payment was rejected, and I had a £10 charge and simply used my other account, rather than they let it go through and charge me 5 times as much. There isn't direct debits on this account, only card payments made by me.
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