MSE News: Halifax to raise overdraft charges for customers deep in the red

vintagegirl

quick question re this.
I have a £2200 overdraft with Halifax, I am currently in credit though and not using it.
If i did use say £200 of it do you only get charged the £2 per day if you are over the £2200 overdraft or if you use it at all?

opinions4u

vintagegirl wrote: »

quick question re this.
I have a £2200 overdraft with Halifax, I am currently in credit though and not using it.
If i did use say £200 of it do you only get charged the £2 per day if you are over the £2200 overdraft or if you use it at all?

The charge is based on the amount you are overdrawn by, not the limit itself.

Go £200 overdrawn for a day and pay £1 for it.

Unless you have an URCA then no fee for an arranged overdraft of less than £300.

collywollys

opinions4u wrote: »

It's expensive.

Be outraged, be overdrawn with them and pay up.

Or stay in credit, collect your fivers and continue running your finances sensibly.

Five months notice to those affected is very generous. Make the most of it and turn your finances round in that time.

your sentiment is spot on, but for people in this predicament its only going to make it harder for them to get out of the mess they find themselves in.

In turn resulting in the bank losing out when they default !!

whitegoods_engineer

The Halifax has now become stupidly overpriced. I have been with them since I left school and am now 50!

I am going to close my Halifax account very soon and use an alternative account from now on.

The Halifax are money-grabbers, plain and simple. They charge those in debt punitive charges, causing those in debt to have even more problems, spiraling their debt out of control.

Irresponsible and stupid. That's the Halifax bank. Good Riddance.

MoneySaverLog

whitegoods_engineer wrote: »

Irresponsible and stupid. That's the Halifax bank. Good Riddance.

The Halifax obviously don't want people to borrow on overdrafts and by putting up fees by so much are attempting to dissuade anyone from using one.

pinkdalek

whitegoods_engineer wrote: »

The Halifax has now become stupidly overpriced. I have been with them since I left school and am now 50!

I am going to close my Halifax account very soon and use an alternative account from now on.

The Halifax are money-grabbers, plain and simple. They charge those in debt punitive charges, causing those in debt to have even more problems, spiraling their debt out of control.

Irresponsible and stupid. That's the Halifax bank. Good Riddance.

That's your opinion, however you could argue that about any bank or business couldn't you. They are not a charity, you don't have to take out the products they offer. Yet the Halifax offer £5 rewards to their current account customers, chances of winning upto £100,000 every month to their savings account customers, discounts on their products to not just new customers but existing ones also.

opinions4u

whitegoods_engineer wrote: »

The Halifax has now become stupidly overpriced. I have been with them since I left school and am now 50!

So you were about 28 when they first started offering overdrafts. 26 when they first started offering unsecured loans. 25 when the first Halifax Credit Card was issued.

I am going to close my Halifax account very soon and use an alternative account from now on.

This is always the account holders prerogative. I strongly support getting the best deal for your circumstances. But sometimes taking action to change those circumstances is a more appropriate course of action.

Halifax hasn't always offered unsecured credit in your adult life. It is an individual's choice to borrow. Borrowing comes at a price. If you don't like that price, don't borrow.

The Halifax are money-grabbers, plain and simple. They charge those in debt punitive charges, causing those in debt to have even more problems, spiraling their debt out of control.

They are giving FIVE months notice to a change in pricing. That is a long time to get your overdraft below £2,000 or £3,000. It's a long time to be able to finance the debt in better ways, either with Halifax or elsewhere.

Offering current account facilities is an expensive business. Lending money on an overdraft is a risky business. Other banks charge a mixture of fees and interest. Halifax has opted for a simple, but expensive, price of doing business.

Irresponsible and stupid. That's the Halifax bank. Good Riddance.

Those who choose to borrow at such prices are irresponsible and stupid. The bank appears to be quite smart.

It's a fantastic opportunity for those affected to change their wreckless borrowing habits for the better.

Kite2010

Halifax' income from selling PPI insurance has dropped, not to mention all the money they are paying out for missolded policies, no wonder why they have to put up charges.

The top-level people can't do without their bonuses & pay-rises this year they might jump ship to another bank!

MoneySaverLog

Kite2010 wrote: »

The top-level people can't do without their bonuses & pay-rises this year they might jump ship to another bank!

Let's hope the Group CEO, who is ex-Santander, does jump ship.

rb10

MoneySaverLog wrote: »

Let's hope the Group CEO, who is ex-Santander, does jump ship.

What has he done that has been bad for LBG (other than his period of illness, which wasn't his fault)?