Major worry halifax closing my account with overdraft lost please help

emma809

Hi hoping someone can help as I have no one to ask. I have been a loyal customer of Halifax for 20 years and today after 4 seperate complaints of bad service with them an adviser called to say as I was not happy with service they were giving me 60 days notice and were closing account problem is I have a 3000 pounds overdraft which I am always in and secretly I think this is why they are closing it! I do deposit around 2200 pounds each month from salary etc but just had a baby and always seen to be in overdraft! They said that collections would contact me to arrange payment of overdraft! I opened another account today with TSb and have arranged for wages etc to be paid into this! I am worried though as I have a mortgage with Halifax in joint names with husband it is all up to date etc but could this affect that? I'm so worried as I have no one to turn to, we both have seperate accounts husband and I just works easier that way. Can anyone advise on how Halifax closing this account and having to arrange repayment of overdraft will work out? Please help so worried thanks!

grumbler

Generally, all overdrafts are repayable on demand. It's really a bad habit to rely on it like you do.
I am not sure, but can guess that overdraft has to be paid off if the account is closed. Otherwise it's likely to be a payment plan that will be reported to CRAs accordingly. This cannot affect the mortgage, but can affect your credit rating and your OH's one as he is associated with you via the joint mortgage.

Have TSB not given you any agreed overdraft?
If your credit history is good you can apply for a credit card ASAP. See:
Money Transfer: Shift loans or overdrafts - Money Saving Expert

See also: Spending 0% Cards

If you get a card, don't relax and concentrate on getting back in black as 0% deal will expire and the rate will revert to the standard (high) one.

mwarby

emma809 wrote: »

Hi hoping someone can help as I have no one to ask. I have been a loyal customer of Halifax for 20 years and today after 4 seperate complaints of bad service with them an adviser called to say as I was not happy with service they were giving me 60 days notice and were closing account problem is I have a 3000 pounds overdraft which I am always in and secretly I think this is why they are closing it! I do deposit around 2200 pounds each month from salary etc but just had a baby and always seen to be in overdraft! They said that collections would contact me to arrange payment of overdraft! I opened another account today with TSb and have arranged for wages etc to be paid into this! I am worried though as I have a mortgage with Halifax in joint names with husband it is all up to date etc but could this affect that? I'm so worried as I have no one to turn to, we both have seperate accounts husband and I just works easier that way. Can anyone advise on how Halifax closing this account and having to arrange repayment of overdraft will work out? Please help so worried thanks!

I think the complaint possibly triggered a review of whether your where a customer it was good for them to retain or not, I suspect the overdraft being bigger than the payments in didn't help.

I wouldn't use TSB personally, as they are part of Lloyds banking group, as is Halifax. The risk being that Halfax collections may be able to dip into your TSB account. The same goes for Lloyds and Bank of Scotland

Martin

emma809

mwarby wrote: »

I think the complaint possibly triggered a review of whether your where a customer it was good for them to retain or not, I suspect the overdraft being bigger than the payments in didn't help.

I wouldn't use TSB personally, as they are part of Lloyds banking group, as is Halifax. The risk being that Halfax collections may be able to dip into your TSB account. The same goes for Lloyds and Bank of Scotland

Martin

Oh dear I've already opened tsb account and arranged it all will see how it goes? Would tsb not have to say if tsking my benefits etc out account? Hoping hbos will accept 60 pounds per month til overdraft is paid grateful for advice thanks!

emma809

[Yes tsb said would give me overdraft but I doubt that amount was thinking overdraft free and setting up a reasonable plan with Halifax get overdraft paid in couple years? Will they continue adding interest any advice is grateful I'm so not clued up thanks
QUOTE=grumbler;65136624]Generally, all overdrafts are repayable on demand. It's really a bad habit to rely on it like you do.
I am not sure, but can guess that overdraft has to be paid off if the account is closed. Otherwise it's likely to be a payment plan that will be reported to CRAs accordingly. This cannot affect the mortgage, but can affect your credit rating and your OH's one as he is associated with you via the joint mortgage.

Have TSB not given you any agreed overdraft?
If your credit history is good you can apply for a credit card ASAP. See:
Yes tsb said would give me overdraft but I doubt that amount was thinking overdraft free and setting up a reasonable plan with Halifax get overdraft paid in couple years? Will they continue adding interest any advice is grateful I'm so not clued up th
Money Transfer: Shift loans or overdrafts - Money Saving Expert
Yes tsb said would give me overdraft but I doubt that amount was thinking overdraft free and setting up a reasonable plan with Halifax get overdraft paid in couple years? Will they continue adding interest any advice is grateful I'm so not clued up thsnks!

See also: Spending 0% Cards

If you get a card, don't relax and concentrate on getting back in black as 0% deal will expire and the rate will revert to the standard (high) one.[/QUOTE]

jonesMUFCforever

I suspect that the complaints have nothing to do with the closure of the account.
If they were just closing it you would get a cheque for the balance not having the Collections unit involved; I don't think we have had the full story here. To me OP is a very profitable customer for the bank.


One last thing is opening an account with TSB a good thing?
At the moment both banks are part of Lloyds banking group - they might exercise their right of set off between the accounts.

mwarby

jonesMUFCforever wrote: »

I suspect that the complaints have nothing to do with the closure of the account.
If they were just closing it you would get a cheque for the balance not having the Collections unit involved; I don't think we have had the full story here. To me OP is a very profitable customer for the bank.


One last thing is opening an account with TSB a good thing?
At the moment both banks are part of Lloyds banking group - they might exercise their right of set off between the accounts.

The balance is obviously negative at the moment, with £2200 and a £3000 limit the OP could easily be slipping into the overdraft by £800 more each month, which would be an increasing risk or the bank

Martin

mwarby

emma809 wrote: »

Oh dear I've already opened tsb account and arranged it all will see how it goes? Would tsb not have to say if tsking my benefits etc out account? Hoping hbos will accept 60 pounds per month til overdraft is paid grateful for advice thanks!

I'd open a bank account elsewhere, then at least you are in control of what they get paid when, they could chose to set off on payday, you might get some released but could be a lot of hassle

I'd also worry that the bad internal score you may have with halifax would be seen by TSB

Martin

emma809

mwarby wrote: »

I'd open a bank account elsewhere, then at least you are in control of what they get paid when, they could chose to set off on payday, you might get some released but could be a lot of hassle

I'd also worry that the bad internal score you may have with halifax would be seen by TSB

Martin

Thanks for your advice Martin will let you know what happens I'm totally bewildered after 20 years as a customer????

emma809

jonesMUFCforever wrote: »

I suspect that the complaints have nothing to do with the closure of the account.
If they were just closing it you would get a cheque for the balance not having the Collections unit involved; I don't think we have had the full story here. To me OP is a very profitable customer for the bank.


One last thing is opening an account with TSB a good thing?
At the moment both banks are part of Lloyds banking group - they might exercise their right of set off between the accounts.

As I explained I'm overdrawn that's why they mentioned collections nothing untoward loyal customer for 20 years had plenty of my money in every month mortgage up to date credit card paid loan paid don't understand just a very cheeky adviser with my complaint as she was not handling it then called me back to say over phone account closed in 60 days!!!!!! If overdraft not paid deal with collections I e just had a baby so stressful thanks!

jonesMUFCforever

If you think that the adviser who dealt with your complaint over stepped the mark - make another complaint! Just get it started pronto as they can take up to 8 weeks to deal with it.