Halifax UnAuthorised OD Fees

MsBlonde

I have 2 bank accounts, 1 I use day to day and a basic cashcard with halifax for internet purchases and magazine subscriptions.

Today I logon to find they've paid out a £22 mag subscription last month despite being no funds and then charged me £155 in charges =\

Do I pay these charges or dispute them?

jalexa

MsBlonde wrote: »

I have ... a basic cashcard with halifax for internet purchases and magazine subscriptions.

Today I logon to find they've paid out a £22 mag subscription last month despite being no funds and then charged me £155 in charges

Do I pay these charges or dispute them?

First of all the easy bit. The magazine subscription is almost certainly a "continuous payment authority" and therefore properly chargeable to your account regardless whether there were funds in your account or not.

The "£155 in charges" is a little harder to answer. According to the most recent Halifax charges leaflet (08/11) it does not seem to be possible to levy *any* charges on a "basic account" for the "transgression" you post about. *Exactly* which Halifax "basic" account are you using?

I would also have expected a letter immediately the issue arose? You didn't receive a letter?

To answer your question about the "£155" you need to refer to the charges leaflet applicable to your type of account.

YorkshireBoy

You say you have a "basic cashcard (account)", but you must have a full feature current account in order to incur £5 per day charges for 31 days.

You could try for some goodwill, but you made (via the contract you had with the mag provider) an informal overdraft request. They simply granted your request.

They'll argue you had 31 days in which to address the issue and minimise your costs, so may only offer a small goodwill payment (but possibly only if you normally manage your account(s) well).

MsBlonde

i'll try to get a reduction in cost, hopefully they'll respond to my plea. Lack of funds meant I didn't do any online spending hence why it went unnoticed, also didn't know the mag subscription was up for renewal last month.

I got a letter from them today which is what prompted me to login "PLEASE PAY £177 NOW".

opinions4u

MsBlonde wrote: »

I have 2 bank accounts, 1 I use day to day and a basic cashcard with halifax for internet purchases and magazine subscriptions.

Today I logon to find they've paid out a £22 mag subscription last month despite being no funds and then charged me £155 in charges =\

Do I pay these charges or dispute them?

You don't dispute them because it's your own fault that they've occurred.

You ask them nicely to waive them, fluttering eyelids etc.

If they refuse, it's tough.

Set up your account for text alerts. Then you'll get a warning as soon as this situation arises.

YorkshireBoy

You'll be in a far better position to ask for some goodwill if you clear the charges and bring the account back to order. Have you done that?...including the £5 per day accruing from the date of the letter (or is the £177 the up to date balance as of today?).

MsBlonde

opinions4u wrote: »

You don't dispute them because it's your own fault that they've occurred.

You ask them nicely to waive them, fluttering eyelids etc.

If they refuse, it's tough.

Set up your account for text alerts. Then you'll get a warning as soon as this situation arises.

My bad, dispute was the wrong word to use. I just thought wow so this is how they make their money, talk about how to spiral something out of control, and help people get into more debt. Just cannot see how they can honestly see £155 in charges is fair lol I thought there surely would be a maximum charge? I guess If I don't pay it off pretty soon they'll add some more charges ontop of charges and then I will be in trouble

MsBlonde

YorkshireBoy wrote: »

You'll be in a far better position to ask for some goodwill if you clear the charges and bring the account back to order. Have you done that?...including the £5 per day accruing from the date of the letter (or is the £177 the up to date balance as of today?).

my account is -£177.00 as of today. unfortuantley being i've just come out of a job and not got a new one as of yet, this is going to get rough.

jalexa

MsBlonde wrote: »

How has the confusion between basic cardcash and "full service" arisen?

And a question for a "bank expert", should the creation of an "unplanned overdraft" not have triggered a prompter letter?

MsBlonde

jalexa wrote: »

How has the confusion between basic cardcash and "full service" arisen?

And a question for a "bank expert", should the creation of an "unplanned overdraft" not have triggered a prompter letter?

Thats the thing, they didn't send me a letter about paying them honouring the directdebit.

YorkshireBoy

MsBlonde wrote: »

Just cannot see how they can honestly see £155 in charges is fair

When the bank charges revolt happened (fueled in part by this very website) this was one of the issues warned about by myself and others.

Under the old 'rules' you'd have incurred a circa £35 fee for the payment made, a circa £25 fee for using an unauthorised overdraft, and a few pence debit interest (at circa 28.9% APR) for the 31 or so days.

So...old rules = £60...new rules = £177

As was said at the time...be careful what you wish for!