halifax to up/change overdraft fees again!!!

BugsyBrowne

opinions4u wrote: »

What has being bailed out got to do with it?

Nothing whatsoever as I don't give 2 sh*ts either way if I am honest.

MoneySaverLog

The simple answer is to avoid it by not going overdrawn with them.

It's obvious they don't want people to live constantly within their OD's given their new pricing structure. Just take the hint and stay in credit.

noh

If you use a £10000 planned overdraft Halifax is one of the cheapest providers! At a rate of 10.95%

chanz4

I have x2 £250 o'ds and that only incase utility companys change dd amounts and I don't notice. However never yet used.

Look at it this way its cheaper than payday loans

pvt

Just to be clear then - I will be able to borrow £10,000 for a day and only pay £3 for that. And I don't need to forewarn the bank I'm going to do it. And I can extend it as I like, at just £3 per day.

And that's a bad deal?

Wonder how it compares with a loan from a PDL outfit then....

callum9999

pvt wrote: »

Just to be clear then - I will be able to borrow £10,000 for a day and only pay £3 for that. And I don't need to forewarn the bank I'm going to do it. And I can extend it as I like, at just £3 per day.

And that's a bad deal?

Wonder how it compares with a loan from a PDL outfit then....

While I do agree with your general premise (especially as Halifax aren't THE bank in the UK, if you don't like it just shut up and go elsewhere - I don't stage pickets outside Waitrose moaning about how expensive it is, I just go to ASDA!), the kind of person able to get a £10k overdraft facility with Halifax probably aren't the same people who would be using pay day loans!

jjlandlord

BugsyBrowne wrote: »

I personally think its a disgrace how a bail out bank can charge these sort of fees for planned overdrafts and although I personally don't use overdrafts I do know many thousands live in theirs on a daily basis.

Why is this a disgrace?
As a tax payer I don't want to subsidize overdrafts of people inept at budgeting.
And yes someone who's using an overdraft on a daily basis is inept at budgeting.

As for the OP: Halifax is c... in any case.

seriousDFW

I think the bigger issue is why do they allow people do dig themselves into such huge overdrafts? If OD's weren't quite so big, people would sort out their spending sooner. I know this is the responsibility of the consumer, and I understand banks want to give big overdrafts so they can rake in big charges, but to be a more responsible lender, overdraft limits wouldn't be so high. OD's are supposed to be short term arrangements - having an OD facility so big is going to be really difficult to get out of. I suppose this structure will at least put people off larger ODs!

innovate

seriousDFW wrote: »

I think the bigger issue is why do they allow people do dig themselves into such huge overdrafts? If OD's weren't quite so big, people would sort out their spending sooner. I know this is the responsibility of the consumer, and I understand banks want to give big overdrafts so they can rake in big charges, but to be a more responsible lender, overdraft limits wouldn't be so high. OD's are supposed to be short term arrangements - having an OD facility so big is going to be really difficult to get out of. I suppose this structure will at least put people off larger ODs!

In the end, it all comes back to people assuming responsibility for their own affairs.

If banks limit the overdrafts they make available, they will be under fire for being scroogey. And people will go to Zopa or Bank On Dave or Payday Loan sharks for as long as these outfits exists....

We need a fundamental, society-wide, shift away from the "buy now, pay later" culture that has been drummed into people for a decade or so. There's obviously nothing really wrong with 'buy now, pay later" for people who have a grip on their finances - - it's a superb 0% APR loan. Unfortunately, the only reason these sorts of deals are on offer is because there are a huge number of people who don't have a grip on their finances - mainly because they have never been educated on how to handle their finances.

Banks like Halifax sending shockwaves with overdraft charges might be a small part of ending that "buy now, pay later" culture.

lippy1923

OP- Why would you consider leaving when they pay you £5pm on each current account you have with them, just for cycling £1k in and out?

The new charges do not affect you, so you would just be shooting yourself in the foot.

IMO its a good way to make people budget better. If you only plan on borrowing a few quid, use another bank.