Halifax withdrawn my wifes overdraft facility !

DAREDEVIL78

hi, just a quick query if members could comment on, my wife has a £3000 overdraft facility on her current account with the halifax , she is roughly £2500 into this overdraft paying the flat rate daily fees and received a letter the other day saying they have withdrawn her overdraft facility totally which now means her daily fee is £5.00 per day as it is now classed as an unarranged overdraft .
She rung them to query this and was told it is because she isnt tackling the overdraft enough, although she is slowly trying to reduce the balance , just it seems unfair to do this as what is the point of an overdraft of £3k and not been able to use it , its quite obvious if you use this amount you arent exactly going to pay it back the next day but over time surely ?
Question is can they change the ''goalposts'' so to speak like this putting her in an extortionate fees position ?

bengal-stripe

DAREDEVIL78 wrote: »

Question is can they change the ''goalposts'' so to speak like this putting her in an extortionate fees position ?

Yes they can, overdrafts are payable on demand.

Contact the bank and ask them to reduce the overdraft by, let's say, £200 a month. Then the overdraft would be cleared in a year's time.

jonesMUFCforever

You have to ask yourself why Halifax are withdrawing her o/d facility when it makes them so much money?
Are there other financial pressures on her/you - has the bank returned any payments/cheques?
Over what timescale has the o/d grown to £3k?

Has she seen if they will give her a loan to clear the overdraft?

happy_bunny_2

Best get a new account for her next wages if you can.

They can do this, but they have to play fair by why I have read on here and make sure there is enough money for rent and food etc. if not then complain and refer to FOS if not happy with the response.

opinions4u

happy_bunny wrote: »

They can do this, but they have to play fair by why I have read on here and make sure there is enough money for rent and food etc. if not then complain and refer to FOS if not happy with the response.

They can withdraw an overdraft facility on demand.

What you are referring to is "right of set off". That is a completely different topic.

silvercar

Read this article on the main website:

http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

Scroll down to the end of step 4 and "open" the last question:

"Is it fair for overdraft and credit card limits to be reduced BELOW the amount people currently owe?"
"We've only seen very occasional complaints like this. It would depend on the circumstances eg, had proper notice been given? How much had the credit limit been reduced by? Generally, we'd expect credit card companies to reduce a credit limit in increments, giving notice to the consumer of what they are intending to do.

"We would not generally consider it fair, if a consumer was using a £1,000 credit limit, for a firm to reduce it in one step to £500 - because this would mean a consumer would need to suddenly find £500 to prevent them being from being subject to charges. If a consumer in these circumstances found that they were getting charges they may well have cause for complaint."

Rupert_Bear

In my younger days overdrafts were only short term borrowing and anything longer then you would get a loan. People these days are given all these financial goodies but for some they need to come with a financial lesson.