Shock from HBOS this morning...

AlisonM

Having been running my account in an arranged overdraft for almost 18 months now, with one or two failed direct debits a month that are rejected due to insufficient funds - I check my account this morning to find that HBOS have changed their habits.

Instead of rejecting my direct debits, they have paid them - putting me almost £500 over my overdraft limit.

This is a problem - extra fees that I can't afford.

I've been on the phone - they deny 'changed behaviour without warning' (which is what has caught me out) and will refund up to £35.00 of any incurred fees - which is sometihng, I suppose, but I'm sturggling with regard to those non direct debit payments that I have to make today.

Anyone else have problems? Is it a policy change designed to catch people out?

AlisonM

moonrakerz wrote: »

So you have been spending more money than you actually have - and have been relying on your bank not to actually pay your bills when they arrive.

Now this nasty, evil, rapacious bank, with no financial morals whatsoever, has paid your bills and has asked you to pay them back ? Wow - that really is sneaky and underhand ! Whatever next ??

Ye Gods ..........................................!!!!

Thanks for the support - maybe you are widowed with three children too and understand how it is?

System

AlisonM wrote: »

Thanks for the support - maybe you are widowed with three children too and understand how it is?

If you are having financial difficulties, not able to pay the regular bills, then you need better advice than you will get on a forum like this.

You need to make better arrangements to pay your bills, just leaving the Direct Debits setup knowing there are insufficient funds in the account, is not a good method to use to control the payments.

Contact your local C.A.B. they will give you advice and/or put you in contact with other agencies who can help.

easy

AlisonM wrote: »

Thanks for the support - maybe you are widowed with three children too and understand how it is?

AlisonM, look, I'm sure members here will be sorry for your personal circumstances, but despite that it is up to YOU to manage your finances.

If you knew that you were working within an agreed overdraft limit, you should not have spent funds that would take you over that limit.

If you have DD agreements to other companies, you should make sure you have the funds to make those payments, it isn't up to the bank to 'choose' what transactions they should allow/not allow on your behalf.

Haven't your bank charged you for the previously failed transactions anyway - I thought most banks did ?

I'm sorry, but you really can't complain to the bank if you have allowed the account to go over the overdraft limit. They have shown goodwill I think by waiving your £35 of charges.

I'm sorry, but you really do need to get a grip on managing this financial situation yourself. Would it be best to cancel the direct debits and manage the payments yourself, to help you keep better track of the balance?

tagq2

If your finances only allow you to pay certain bills on time some of the time, you may wish to cancel the direct debits and find another method to pay which requires you to initiate the transaction (e.g. payment card, cheque, BACS). Some things can be slightly cheaper by direct debit but this would probably be offset by bank charges. The T&C of my bank are clear that whether they will give you an informal overdraft is their call - it's likely to be down to a computerised algorithm which determines your ability to remain solvent and/or profitable in the long term.

If part of the debt was due to incurring certain important costs, you may be eligible for a budgeting loan.

maninthestreet

AlisonM - if you haven't already done so, go on to the DFW board and post you Statement of Affairs (a list of you monthly income and outgoings).
People on there will advise you accordingly. This should be your 'Light Bulb Moment'.

AlisonM

BAA1 wrote: »

If you are having financial difficulties, not able to pay the regular bills, then you need better advice than you will get on a forum like this.

You need to make better arrangements to pay your bills, just leaving the Direct Debits setup knowing there are insufficient funds in the account, is not a good method to use to control the payments.

Contact your local C.A.B. they will give you advice and/or put you in contact with other agencies who can help.

My bills are paid - just late.

Like most people, I juggle. A change in bank practice would appear to have upset my juggling routine and could cost me in a way that. given more knowledge in advance, I could have prepared for.

This is where my question lies - about bank practice.

AlisonM

easy wrote: »

AlisonM, look, I'm sure members here will be sorry for your personal circumstances, but despite that it is up to YOU to manage your finances.

If you knew that you were working within an agreed overdraft limit, you should not have spent funds that would take you over that limit.

If you have DD agreements to other companies, you should make sure you have the funds to make those payments, it isn't up to the bank to 'choose' what transactions they should allow/not allow on your behalf.

Haven't your bank charged you for the previously failed transactions anyway - I thought most banks did ?

I'm sorry, but you really can't complain to the bank if you have allowed the account to go over the overdraft limit. They have shown goodwill I think by waiving your £35 of charges.

I'm sorry, but you really do need to get a grip on managing this financial situation yourself. Would it be best to cancel the direct debits and manage the payments yourself, to help you keep better track of the balance?

My question was about bank practice.

AlisonM

tagq2 wrote: »

If your finances only allow you to pay certain bills on time some of the time, you may wish to cancel the direct debits and find another method to pay which requires you to initiate the transaction (e.g. payment card, cheque, BACS). Some things can be slightly cheaper by direct debit but this would probably be offset by bank charges. The T&C of my bank are clear that whether they will give you an informal overdraft is their call - it's likely to be down to a computerised algorithm which determines your ability to remain solvent and/or profitable in the long term.

QUOTE]

My question was about bank practice.

AlisonM

maninthestreet wrote: »

AlisonM - if you haven't already done so, go on to the DFW board and post you Statement of Affairs (a list of you monthly income and outgoings).
People on there will advise you accordingly. This should be your 'Light Bulb Moment'.

My question was about bank practice.

crispy_chris

Sometimes they honour them, sometimes they dont.
That's the bank practice