New Halifax Overdraft Charges

Harvey1949

Just realised how much new overdraft charges are costing me - and that they are actually taking £3 from my account every day! So far this month, they’ve had £60 overdraft fee, £15 account fee and 10x£3. I’m a pensioner on a very limited fixed income and find myself in dire straits this weekend. Have an appointment at my branch on Wednesday to try to sort this out. Heat or eat has just become a reality!

Gerrymouse

Judith_Lawrence wrote: »

I have been with Halifax for 45 years, initially too lazy to move but for last 15years have been registered disabled, unable to work and live on benefits. I already had a £1000 overdraft when I finished working and since then go up to overdraft limit every month and have been unable to get out of it. I have been paying £30 most months up till now and when I received the letter, couldn't work it out, (dyslexic), please can anyone tell me wether I benefit or lose out?

Judith use this calculator, its quite easy to use and will give you answer

https://www.halifax.co.uk/bankaccounts/overdraft-assessment/the-new-overdraft-fees.asp

Gerrymouse

phil90210 wrote: »

has anyone had any help from halifax i got told to phone back mid november but by then the fees should already have started?

Call everyday and give up after an hour, today is my record waiting time, 2 hours 16 mins but I have no choice, my fees have gone from £85 to £220 PLUS £40 for old charges next month

Gerrymouse

so I waited 2 hours 15 mins to speak to someone and finally did, we spent 30 mins doing income/expenditure options

He then presented the following

1) freeze all fees for 30 days and then I move to collections dept who will shut my account, agree repayment and allow me a basic bank account

2) go see a debt management place (the fact that Halifax sent me into this issue is not their problem)

3) keep my account as it is and repay £450 back a month, I asked given you just looked at my income and all out goings, do I have £450 surplus at month end ... he said er ... no

not much of an option then

Im not sure I understand the implications of 1) but basically all the people who managed to get 1p for every £14 will not apply to me

Kim_13

Harvey1949 wrote: »

Just realised how much new overdraft charges are costing me - and that they are actually taking £3 from my account every day! So far this month, they’ve had £60 overdraft fee, £15 account fee and 10x£3. I’m a pensioner on a very limited fixed income and find myself in dire straits this weekend. Have an appointment at my branch on Wednesday to try to sort this out. Heat or eat has just become a reality!

If you are paying a £15 account fee per month you must have the Ultimate Reward account, which comes with mobile insurance, travel insurance and breakdown cover. Do you really need these, or can you get them cheaper elsewhere if you do? Downgrading to the Reward account would be free, so saving you £15 a month.

MSE's insurance guides can help you see whether you could make a saving elsewhere, if you do need cover: https://www.moneysavingexpert.com/insurance/

If you didn't need, want or ask for this account or were induced in some other way, please see this guide about reclaiming the fees: https://www.moneysavingexpert.com/reclaim/reclaim-packaged-bank-accounts

If you decide that the Ultimate Reward is worth the £15 monthly fee, bear in mind that the travel insurance will ceasd to cover you on your 71st birthday.

TheShape

Gerrymouse wrote: »

so I waited 2 hours 15 mins to speak to someone and finally did, we spent 30 mins doing income/expenditure options

He then presented the following

1) freeze all fees for 30 days and then I move to collections dept who will shut my account, agree repayment and allow me a basic bank account

2) go see a debt management place (the fact that Halifax sent me into this issue is not their problem)

3) keep my account as it is and repay £450 back a month, I asked given you just looked at my income and all out goings, do I have £450 surplus at month end ... he said er ... no

not much of an option then

Im not sure I understand the implications of 1) but basically all the people who managed to get 1p for every £14 will not apply to me

Someone else will probably give you an opinion on option 1.

As for option 2. Certainly some debt advice (if not debt management) would be very sensible. The charges you mentioned in a previous post suggest an overdraft approaching £5000. I'm not sure how Halifax can be blamed when there appears to be an underlying issue with money management.

YorkshireBoy

TheShape wrote: »

Someone else will probably give you an opinion on option 1.

My opinion would be they'll place an arrangement to pay (AP) marker on their credit reports. Whilst not as bad as a default, I'd assume it will do significant damage for up to 6 years.

enthusiasticsaver

Gerrymouse wrote: »

so I waited 2 hours 15 mins to speak to someone and finally did, we spent 30 mins doing income/expenditure options

He then presented the following

1) freeze all fees for 30 days and then I move to collections dept who will shut my account, agree repayment and allow me a basic bank account

2) go see a debt management place (the fact that Halifax sent me into this issue is not their problem)

3) keep my account as it is and repay £450 back a month, I asked given you just looked at my income and all out goings, do I have £450 surplus at month end ... he said er ... no

not much of an option then

Im not sure I understand the implications of 1) but basically all the people who managed to get 1p for every £14 will not apply to me

What is your credit record like? Have you tried an application for a 0% money transfer card? On those sorts of fees your overdraft must be quite large. It might be worth posting your soa on the DFW Forum but I would suggest you try the eligibility checker to see if you could get it moved to a 0% card.

wizzywig27

Ok, so here is my update - its laughable really how this bank are treating their customers, if this was my younger self and had the rest of my life ahead of me id run for the hills with their money - not that I am condoning this to anyone - of course that is just my opinion.

I may (or may not) have mentioned in previous posts I had complained to the CEO of Halifax. Well as part of the respone from the Chief Exec's office was that they may be able to offer me a loan, or barring that a rate of 1p for every £14 borrowed (half price) until February. He basically told me there was nothing else they can do, and wait until November to call them back.

I wasnt happy woth this response so I went to the FOS - I also reported the bank and their practices to the FSA.

Now before I go on, it is worth mentioning that I reduced my overdraft by £1520 to £480 - my aim is to clear this by January.

I have to say the FOS has been nothing short of a joke from the beginning. Lack of updates, no support (he actually said I was putting up barriers by not agreeing to the Debt Management Plan (similar to the above where the suggested sending to collections to arrange an Arrangment to Pay), he besically said the bank have made no errors and he cannot do anything. I explained they are sending me into financial hardship, are you not able to take that into consideation, he said no (surprises me that). I mentioned to him that I have it in writing that they can offer me 1p for every £14 but now the bank are saying they are unable to even offer me that - he states the wording of the letter is confusing but he is likley to side with them (it states - and I am recalling this from memory as I dont have it on me - that 'We may be able to offer you a loan if eligible; barring that we are able to offer 1p for every £14 borrowed') He claims that as it is a part of the same sentence then he also means they 'may' for the 1p for every £14 as well - I said I didnt agree.

I have chased the FOS this morning and got this reply:

Thank you for your email. I am currently awaiting Halifax’s response as I have approached it asking if it would be willing to offer you the reduced rate on your overdraft until February 2018 considering you have recently reduced the amount of your outstanding balance. I will keep you updated further upon receiving its response.

Now, I thought the Obudsman was impartial, and didnt take it's own views into view when making a decision, surely him determining what was meant in the letter is just that? I am also confused as to why he is 'asking' them rather then 'requesting' or 'telling them' to honour the agreement I have in writing.

Its a farce. I cannot wait to ditch this bank.

amanita

Well done! Can I suggest you just continue the amazing work you've done to reduce your overdraft so much and just switch when you get the chance? It looks as though you're going to escape.

I don't think you're going to win this one I'm afraid, but at least you're no longer facing ruin.

If you really do carry on fighting, please let us know the outcome!