Halifax Overdraft

DanDan123

From next month, my wages will be going into my new bank account. Thats all good, but for one thing. I have £1000 overdraft on my Halifax account that i need to pay off.
If my wages stop going in there, i have a feeling that they will want it all back. What i would like to do, is arrange something with them, where i make a payment to them monthly until it is cleared. Do you think they will accept this, or will they demand it all back before then?

Any advise would be great.

techno_geek

What you suggested should be fine, or if you get a sufficient overdraft limit on your new account you could transfer your overdraft to your new account?

To be honest, as long as you get it all paid off soon there shouldn't be any problems

Moonbeam

They used to do a reducing term overdraft, but I don't think they offer it any more. So long as they see money going in to clear it you will probably be ok. Is your halifax overdraft standby (there all the time) or fixed (e.g. X amount for 1 year)? If it's standby then you just need to get it cleared in your own time - if it's fixed aim to have it cleared by the end of the fixed term, or if that is looming near ask them to re-fix it for another year just now before your salary stops going out.

DanDan123

My new account is just a basic account, so no chance of transfering the overdraft.
The reason is, without going on too much, that it is a joint account, and i have taken responsibility for the overdraft. They wouldnt take my ex g/fs name off, until the overdraft was cleared. So i opened a new account with Lloyds.
I know that my ex still has an account with Halifax, so what i dont want to happen is that they start taking money from her account before i have paid it off. Thats why i want to agree somthing with them. If that all makes sense. I think its just an ongoing overdraft, as it has been on there for about 4 years!

Dont think i will be able to pay it back at much more than £100 per month!

Moonbeam

Presumably your ex no longer has access to the account i.e. cards cancelled and not re-sent. You can reduce it by the £100 per month and just go in each month and say - "change my limit to....."

I'm pretty sure that there isn't a mechanism left in place to allow reducing overdrafts anymore....

msaquib

Hi,

Does Halifax still do standby overdarfts?

MS

regularsaver1

yes they do (ie overdraft that does not end, but can be reviewed) , and they do them for shorter periods

but if checks are passed, or email template sent by branch to underwriters for their decision

Re the OP, overdrafts are reviewed based on credits, but I think you will be find if they can see you are reducing the overdraft each month and not withdrawing any futher funds

brendang_2

i applied yesterday for an overdraft with the Halifax online and was accepted within 24 hours,my questions are will this help boost my credit rating (owe nothing cannot get credit card) credit score is 700/1000 apparently,no debts whatsoever also can someone tell me the costs of the overdrafts with the Halifax as i did not check(fixed term 1 year) as i only applied thinking it would help my credit rating,thanks

christopher39_2

Hi,

I have had bank charges from Halifax and have a big overdraft with them. I am so tired of it that I was thinking of having my wages paid into a new bank account and transferring all my direct debits etc. Do Halifax have any right to demand payment of overdraft once they realise I have stopped having wages paid in and no debits coming out? I am thinking of just withdrawing money and paying it into Halifax each month to clear overdraft. Any replies and experiences of this greatly appreciated.

bengal-stripe

christopher39 wrote: »

...thinking of having my wages paid into a new bank account and transferring all my direct debits etc. Do Halifax have any right to demand payment of overdraft once they realise I have stopped having wages paid in and no debits coming out? I am thinking of just withdrawing money and paying it into Halifax each month to clear overdraft.

Every overdraft is payable on demand.

Unlike a loan, where there is a formal agreement to pay £ xxx over yy months, an overdraft is an informal one. That cookie jar, you’re allowed to dip into, can be withdrawn anytime. The bank is within their rights to demand immediate payments, particular if you transfer your custom elsewhere.

It’s up to you and the bank to come to an agreement. The bank is under no obligation to accept your proposals. They might well put your account into default.

christopher39_2

Thanks for the advice. Do you think it would be better for me to just carry on and try and clear it? Not sure of the best action for me, do feel backed into a corner.

thanks