Shock from HBOS this morning...

tagq2

AlisonM wrote: »

tagq2 wrote: »

[...]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.

My question was about bank practice.

Half of my answer was about bank practice. I've highlighted above in case you missed it.

AlisonM

crispy_chris wrote: »

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

Thank you for hearing my question - it's just the first time in over 18 months, which is difficult to understand.

AlisonM

tagq2 wrote: »

Half of my answer was about bank practice. I've highlighted above in case you missed it.

Yes, thanks. A little general though - if something has been a certain way for 18 months , an unannounced change can throw you for a loop. This is what I'm struggling with. Why one way for 18 months - and then suddenly different?

bengal-stripe

AlisonM wrote: »

My question was about bank practice.

Bank practice: Someone whose DD bounce regularly

.........one or two failed direct debits a month that are rejected due to insufficient funds

will lose their overdraft PDQ and has his/her account downgraded to a basic one, if not closed for good.

System

AlisonM wrote: »

Yes, thanks. A little general though - if something has been a certain way for 18 months , an unannounced change can throw you for a loop. This is what I'm struggling with. Why one way for 18 months - and then suddenly different?

It will not help your situation blaming the bank or asking the same question over and over on here. You should not rely on bank practice to determine if a D/D payment will be paid or not due to insufficient funds in the account.

You need to find a better solution to pay your bills on time or by using pre-arranged agreements with the companies involved.

moonrakerz

AlisonM wrote: »

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

My response stands......!

tagq2

AlisonM wrote: »

Yes, thanks. A little general though - if something has been a certain way for 18 months , an unannounced change can throw you for a loop. This is what I'm struggling with. Why one way for 18 months - and then suddenly different?

Has your income or expenditure behaviour changed even slightly? You might have been a borderline case to whichever algorithm decides whether to honour the DD. Or maybe they've changed the parameters because they observe more people struggling but not obviously insolvent. The optimisation will be based on increasing aggregate profit in the medium term for the bank by analysing all accounts and seeing what works best for your someone with your sort of history.


So if you have individual needs or intentions which you can show to the bank means they would do better to behave differently, you need to discuss it with them. Unfortunately, unless you are in some other way likely to be seen as profitable to the bank, this may not be possible. Someone always operating within an arranged overdraft and with no other products is providing very little income.

There are specific (free) accounts where a refusal to pay will be guaranteed. I think the Co-op Cashminder is one, but as I understand it they have a three strikes policy on going overdrawn, after which they will close your account. I believe there are also accounts which happily bounce as often as you want but charge you a hefty monthly fee.

tl;dr Each bank identifies a way of making sure you are worth keeping.

Thrugelmir

AlisonM wrote: »

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

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

The bank has had enough of managing your personal finances for you and called time. As every month your account has required personal overview and manual return of direct debits.

So nothing to with banking practice. With your account now over the overdraft limit. They've placed the matter finally in your court to deal with.

AlisonM

moonrakerz wrote: »

My response stands......!

Your response is a put down and unhelpful.

AlisonM

BAA1 wrote: »

It will not help your situation blaming the bank or asking the same question over and over on here. You should not rely on bank practice to determine if a D/D payment will be paid or not due to insufficient funds in the account.

You need to find a better solution to pay your bills on time or by using pre-arranged agreements with the companies involved.

It isn't my intention to blame the bank. I know that better solutions are needed.

I have re-iterated the question because respondents have not listened - I'm not asking for get out of debt advice.