Credit charges

Buba2

Hi

Can anyone tell me if they were able to claim back excessive charges for cash withdrawal. Stupidly enough I withdrew £50 in an emergency one day and because I could ever clear the balance in total I paid back £687.88 interest for £50!! This was on top of all other interest. I was never eligible for a loan from Halifax to clear the debt but they were more than happy to up my limit without telling me. I was at a very tough financial stage and they knew I was vulnerable. I accept the interest charges as it was my spending but I just feel £687.88 is completely ridiculous.
I was also given a "free" overdraft with my halifax account for years until they decided to charge me £5 a day out of the blue. Are banks allowed to suddenly introduce they charges when they can see how tight things are financially?

Many thanks

grumbler

How do you know the charges were 'excessive'? What is excessive for 1 year isn't excessive for, say, 10 years.

It is absolutely unclear why you are unhappy about 'upping the limit'. Would you be more happy if they charged you extra for going over it?

Re the overdraft charges, they weren't 'out of the blue'. I am pretty sure they informed you well in advance:
Halifax to raise overdraft charges for customers - Money Saving Expert

That said, all overdrafts are repayable on demand. Do you prefer it just to be pulled?

PeacefulWaters

Buba2 wrote: »

HiCan anyone tell me if they were able to claim back excessive charges for cash withdrawal.

That's a new one. Welcome to MSE.

Stupidly enough I withdrew £50 in an emergency one day and because I could ever clear the balance in total I paid back £687.88 interest for £50!! This was on top of all other interest.

You would have been charged no more than £1.50 for the cash withdrawal. There may have been interest for borrowing the money. There may have been charges for going over your credit limit. There may have been charges for late payment. But the cash withdrawal itself cost you less than a Boots meal deal.

I was never eligible for a loan from Halifax to clear the debt but they were more than happy to up my limit without telling me.

If they'd let you have a loan you'd have been happy? But because they upped your credit limit you're unhappy? I don't get it. Seriously confused.

I was at a very tough financial stage and they knew I was vulnerable.

Credit limit increases are either offered as a result of the card company's computer deciding you're good for it and offering it to you or you initiating a request. A psychiatric assessment for vulnerability is not part of the procedure.

I accept the interest charges as it was my spending but I just feel £687.88 is completely ridiculous.

At 30% interest you'd be charged £15 a year compounding upwards. Just over £1 a month to start with. By the end of the first year the debt attributed to your cash advance would be less than £70. Please explain how you managed to increase it to nearly £700.

I was also given a "free" overdraft with my halifax account for years until they decided to charge me £5 a day out of the blue.

The £5 daily charge applies to accounts outside of their overdraft limit.

Are banks allowed to suddenly introduce they charges when they can see how tight things are financially?

No. They have to give two months written notice. Which they did.

Sorry, there's nothing to reclaim.

(By the way, the poll and choices of answer make no sense)

The_Boss

Not sure why it needed a poll, but 9/9 say "No chance"

Herbalus

I'd like to see more options in the poll please. Some possibilities:
*a little chance (if the credit card company is feeling generous).
*57.283% chance.
*fat chance.
*2000% chance.
*higher chance on Tuesdays.
*not on your nelly.
*once in a blue moon chance.

I think it might provide more variety in the results.

Gaz83

OP has already asked the same question last night, and been given similar answers already.

https://forums.moneysavingexpert.com/discussion/5028129

InsideInsurance

These are charges for the provision of a service and as such can be whatever they like as long as they make you aware of them prior to you taking on the service and that any changes to the terms are given with the notice as set out in the contract.

Referring back to the normal OFT case the reason that one went on for so long and ultimately the OFT won was the argument of if the charges for over limit/ late payment was a "service" and thus simply a commercial decision or if it was a "fine" for breaching the contract terms. This is key because the law says that for breach of contract you cannot have penalty clauses only the requirement of indemnification (ie covering the cost the breach caused). As above, in this case we are certainly talking a service.

You dont say when this happened or over what length of time?

I am guessing it was some time ago as these days all payments made must go towards the highest interest incurring balance so it'd be highly unlikely that the payments would have spiraled that far out of control assuming you were actually making repayments.

Biggles

The_Boss wrote: »

Not sure why it needed a poll

Nor why it need a second thread on a different forum.