Halifax will not allow for o/d reduction

SBOSlayer

Hey all,

I was just looking for a general explanation. It's kind a long story so i'll keep it short. Throughout the use of surveys and random computer repair jobs i'm attempting to reduce my overdraft. I graduated last year, but went on to do a postgrad degree. Money is tight in general, but I have a wee stash for emergencies in another account. So anyway today I spent over an hour on the phone with the bank as I had just finished a repair job and got some survey cash.

I called up to reduce my O/D, but they won't let me, stating: "It will cause further problems for me". Due to infractions on the account. Now this is where the long story comes in. I haven't been over my O'D in like 2 years, but all of a sudden the bank changed my account to a reward account with no notification. I'm still a student and have repeatedly provided those letters stating as such. So there was a bit mix up and got some charges, all refunded and reversed. However, this has put a real dent in my reduction plan.

Simply put they won't let me do it because of said infractions that weren't my mistake in the first place. I honestly do not know what to do. I don't suppose anyone has any suggestions? I've put in a complaint, but goodness knows if it will ever get sorted I so badly want to be debt free as this is my last bit of student debt :mad:

meer53

Your post doesn't make sense.

Were you trying to repay your overdraft with the cash ? If you were, Halifax would not have stopped you.

Whats an infraction ?

BillJones

Your overdraft limit is just that, a limit. It is not a target.

If you are saying that you don't have the mental fortitude to stop using it, then seek help with that, using the overdraft is a symptom of your problems, not a cause.

If you do not like the terms of the account, you can also close it and use another bank.

And, finally, if you are flirting with your limit a little too often, then it's right enough that the bank won't want to reduce it. If they do so, and you then blow through it and land yourself with fees, they probably suspect that you'll blame them.

JKSandy

You will need to clear up your post.

Did you have some graduate account and the OD was free? And now its chargeable?

pmjenkins

I have a Reward account which had a silly £100 overdraft limit that I didn't need. I was able to reduce it using on-line banking.

Is this option available to you?

System

Can the OP not get a graduate account from the first degree or a student account from the postgrad - either usually come with reasonable 0% overdraft and pay off the halifax one?

SuperHan

Reducing the overdraft may trigger a new credit check. If you are still using an element of the overdraft, transferring cash in and having the will power not to use it may be the best way, otherwise you may find that they take the whole overdraft away in one go.

boo_star

The only scenario I can think of here is if the OP contacted Customer Services, who generally can only offer overdrafts at the level "the computer" says.

So if the OP has a current limit of £1000 and a recommended limit of £500, CS would only be able to reduce it to the £500 recommended, rather than say £900 that the OP is after.

It's a bit silly but banks can be quite inflexible when it comes to what CS can do.

Goldiegirl

I've got an overdraft limit on my account, but I've never used it.

It's not obligatory to keep your account at the overdraft limit.

If you want to reduce your overdraft, just pay money into the account to reduce the amount the account is overdrawn- it doesn't matter what the overdraft limit is, the bank won't force you to remain overdrawn to the full amount of your limit!

Archi_Bald

What does the OP want to reduce - the overdraft limit or the overdraft balance? If the former, what is the compelling reason for wanting to do it? If the latter, surely this is easy to do by just depositing some money into the account?

boo_star

Archi_Bald wrote: »

What does the OP want to reduce - the overdraft limit or the overdraft balance? If the former, what is the compelling reason for wanting to do it? If the latter, surely this is easy to do by just depositing some money into the account?

Given the wording it's clearly the overdraft limit rather than the balance.