Halifax removed my overdrafts

mickster1978

A short while ago I was over my agreed permanent od with halifax (2350) and (2500). I agreed a payment plan of 25 per month on both accounts to get back under the agreed limits. I am now under both permanent limits on my accounts and have been told that I no longer have a permanent limit on the account. What's more they have offered me 6 months to clear the overdrafts on a reducing temporary plan and if it's not cleared they will close said accounts and put them into recoverys, which obviously will mean a default etc. Are they allowe to do this ??

Thrugelmir

Simply put yes. Overdrafts are repayable on demand.

fermi

http://www.halifax.co.uk/helpcentre/legal-information/

Overdraft Draft agreement for Personal Current Accounts PDF

All overdrafts are repayable on demand.

The overdraft has no fixed end date but will be subject to regul r reviews by us. We can end or vary this overdraft
(including any fees) at any time in the way set out in t
he Bank Account Terms and Conditions. You can cancel your Planned Overdraft at any time. If you do so, you must pay back any money you owe us.

http://www.halifax.co.uk/bankaccounts/pdf/current-account-guide.pdf

8.3
We may change your overdraft limit at any time but we will usually only reduce your overdraft limit or withdraw your planned overdraft where:
(a) you have failed to fund your account regularly;
(b) you are in breach of a condition relating to use of the overdraft;
(c) your circumstances have changed for the worse;
(d) we reasonably believe that the risks of lending to you have increased;
(e) we reasonably believe that the reduction or withdrawal of the overdraft facility is necessary to prevent you from incurring a debt which you will be unable to repay; or
(f) you have not regularly used the full amount of your planned overdraft facility within the last 12 months

8.13 At any time we may require you to pay us the whole or part of any overdraft, interest and fees which you owe on your account

cakeforbrains

Afraid so. We've had this happen twice (at the same time). You might be able to arrange a longer term to clear it if you call them.

On the plus side, it feels great when it's paid off and it'll be much better for your credit file in the long run to not be in an overdraft.

Candyapple

Aren't you paying £60-70 in monthly charges anyway just for being in that much overdraft with Halifax? Is the £25 per month in addition to this?

Also you will need to check your credit file that they haven't put AP markers on your files.

If you have a good credit history along with salary try and take out the MBNA card that allows money transfers and clear your overdraft. That way you won't be paying ridiculous monthly charges nor have the risk of adverse data being reported to your files and trashing your credit history.

If you can't go down that route, post a statement of affairs over on the DFW board and they'll give you advice on how to cut your spending in order to throw more money at Halifax to clear your overdraft within the timeframe.

Hazzinho

Have you taken additional credit out or maxed a card? Lenders will react to this and know even if it's with another bank.