Want to close Halifax current account

lancunian

Hi, new poster here.
I have a Halifax reward current account with an overdraft which, come November, will incur a £3 per day overdraft charge.
I have written to the Halifax asking to close the account as I do not accept the new T&C's.
They said they could only close the account when the overdraft is paid in full, and they are unable to freeze charges at the current level.
I am fully aware that I should have closed the account in 2009 when the new charging structure came in.
I am also fully aware that I should not have run up a big overdraft.
I would just like to know if there is anything in the unfair T&C conditions or if I can find any way of coming to an agreement with the Halifax. I did speak on the phone but it was no help.
Any help would be greatly appreciated.

BASFORDLAD

So basically you have an overdraft, dont like the new terms

Pay the overdraft and close the account

simple

lancunian

Unfortunately I am not in a position to pay off the overdraft.
When the new charge structure came in 2009, there were a lot of account holders writing in to say the did not accept the new T&C's.
Did anyone have an agreement to pay the overdraft over time at the existing rates?

BASFORDLAD

No they Didnt. You will just need to pay at their new rate

callum9999

The only solution I can see is to get an account elsewhere and transfer the overdraft to it. I don't know if that's feasible in your current circumstances though - presumably not?

opinions4u

They have given you fair notice of the change. If you want out you give the their money back and walk away.

If you can't do that look at alternatives.

1. Make sure you still get the fiver a month for funding.
2. Get your debt down below the £3 / £2 / £1 charging thresholds for as much of the month as possible.
3. Consolidation loan.
4. Spend on credit card for a couple of months and shift the debt over to that.

pinkdalek

Have you spoken to the branch/phone about paying the overdraft off with a loan? Have you got their Clarity Credit Card - if not look at that, if you get the APR of 12.9% and a credit limit to match pay it off using that. On their Clarity Card you are not charged a handling fee for withdrawing cash, just interest from day one. So you would be charged 12.9% on that rather than £3 per day on your overdraft.

A loan would be more suitable as it would help you clear the debt off over a structured term, if a loan is not possible have you looked at borrowing on your mortgage (if you own a home) - although bear in mind you would pay back more over the long run.

If you are in serious debt eg over committed and are struggling, then give their money management team a ring on 0845 603 9050.

However you will need to have done a budget plan before you ring them and must have some form on income e.g. salary. Often they can help.

bengal-stripe

lancunian wrote: »

.......current account with an overdraft which, come November, will incur a £3 per day overdraft charge.

To be charged £3 per day (at the new tariff), OP must be overdrawn in excess of £3k. If you reduce your overdraft down to under £3k, it will be £2 per day and if you reduce it further to under £2k it will be just £1 daily charge. So, it's not a question of everything or nothing. Bring your overdraft down gradually!

http://www.moneysavingexpert.com/news/banking/2012/06/halifax-to-raise-overdraft-charges

OP, how much are you overdrawn at present?

DCFC79

What you do is you open a new account elsewhere, transfer any dd's over and tell your employer your new account details and set up an SO from your new account to the halifax account to pay off the OD. You run up the debt so why not pay it off ?

Looks like i should read other replies before posting as what ive posted has already been suggested.

lancunian

I have opened an account elsewhere.
Due to credit score I would be unable to get a personal loan.
The charges come November would be £90, realistically I could only pay £10 on top of that to bring the overdraft down.
If there is no solution there is no solution, i will just have to pay off what I can.

jonmcclelland

You've got until November to start bringing it down so you might as well start now. You might be able to make a dent in it within 5 weeks.

As long as you get a regular income in and watch what you spend, and perhaps some other money saving options you should be able to ween it away bit by bit as a last resort.