Halifax CA question

Gordon_the_Moron

I have an authorised overdraft facility on my current account of £3000

If my balance is £0 the balance shows as balance £0, available balance £3000.

Yesterday I paid in a cheque for £3000, my balance now shows as balance £3000, available balance £3000 (obviously as they don't already have the money they won't let me withdraw £6000 as the cheque could bounce)

If I draw the £3000 out before it clears it will show as balance £0, available balance £0.

1. Will I get charged the overdraft usage fee.
2. Would I lose the reward for the month (you have to stay in credit for doing so)

My account would technically be overdrawn as they don't have the money, but it would show as balance £0 rather than balance -£3000.

stclair

I would imagine as cheque is not available funds yet.

Should you make a withdrawl it would attract charges for overdraft usage.

grumbler

IMO the word "available" speaks for itself.

Gordon_the_Moron

If I'll get charged for using the overdraft I don't exactly understand why it shows on my balance before it's cleared and is available, any idea?

eskbanker

But it hasn't increased your available balance before it clears, therefore if you withdraw the £3K before clearance, that's coming from the overdraft.

pmduk

Gordon_the_Moron wrote: »

If I'll get charged for using the overdraft I don't exactly understand why it shows on my balance before it's cleared and is available, any idea?

Perhaps they want you to use the chargeable overdraft?

Gordon_the_Moron

eskbanker wrote: »

But it hasn't increased your available balance before it clears, therefore if you withdraw the £3K before clearance, that's coming from the overdraft.

That's still misleading though, if I'm overdrawn £3000 the balance is -£3000 not £0.

eskbanker

If you're overdrawn by £3K and have a cheque awaiting clearance for £3K then the balance should be shown as £0! Available balance will also be £0 until the cheque clears then it'll be back to £3K to take you back to where you were before the £3K went in and out again.

Gordon_the_Moron

If the balance is £0 then you shouldn't be charged for being overdrawn.

If the balance is -£3000 then you obviously should.

Until the £3000 hits the account they haven't got the money, therefore they'd have no reason not to charge you for using the overdraft as it is technically overdrawn, but why show it's not?

Goldiegirl

Why don't you just ask the Halifax?

Dobbibill

Gordon_the_Moron wrote: »

If I'll get charged for using the overdraft I don't exactly understand why it shows on my balance before it's cleared and is available, any idea?

It shows on your balance as you have paid it in on that day. The funds will only be available when it's been through the clearing system and until it is cleared funds there is always a chance it may be unpaid (bounce). A number of reasons can cause this eg insufficient funds at the other end, the cheque not completed correctly or the signature not matching the records held at the other end. Only when it is cleared is it 100% your funds and safe to draw on.

If you draw on the funds before it's available and something goes wrong then you are risking being plummeted into a very large overdraft.

DB