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Halifax CA question

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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.
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Comments

  • stclair
    stclair Posts: 6,854 Forumite
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    I would imagine as cheque is not available funds yet.

    Should you make a withdrawl it would attract charges for overdraft usage.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 26 September 2014 at 8:44AM
    IMO the word "available" speaks for itself.
  • 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?
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

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  • eskbanker
    eskbanker Posts: 37,059 Forumite
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    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
    pmduk Posts: 10,681 Forumite
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    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?
  • 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.
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

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  • eskbanker
    eskbanker Posts: 37,059 Forumite
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    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.
  • 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?
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

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  • Why don't you just ask the Halifax?
    Early retired - 18th December 2014
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  • Dobbibill
    Dobbibill Posts: 4,191 Ambassador
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Name Dropper
    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
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