New Halifax Overdraft Charges

Geoff1963

An overdraft is repayable on demand, so the letter could have been saying that as of tomorrow, it's at the "unauthorised borrowing" rate. Then they'll refuse you a sensible-APR loan, because that would not be "responsible lending". Not for nothing, is the collective noun, a "wunch" of bankers.

wizzywig27

One would then argue that changing the structure to fleece customers and send them into a debt spiral is not responsible me ding either.

I am still awaiting my letter so I have no idea what their plans are for me!

wizzywig27

I tried to edit last post but it won't let me for some reason.

Anyway isn't an unauthorised overdraft non chargeable anyway? That means that I won't pay anything

AliceBanned

wizzywig27 wrote: »

One would then argue that changing the structure to fleece customers and send them into a debt spiral is not responsible me ding either.

I am still awaiting my letter so I have no idea what their plans are for me!

Hi wizzywig I am in a similar position and am saving a small amount with a local credit union - hopefully they will lend me some to cover my overdraft - their APR is 19.9% so not cheap, but still better than 68%. Like you I can't get much cheap credit at the moment but you might find a credit union worth talking to as they often lend to people who can't borrow elsewhere. Let's hope we can shift some of our overdraft to somewhere cheaper than the Halifax overdraft, or get a bit longer from Halifax on the same rate so that we can get the balance down..

wizzywig27

Hello

I'd like to say I have some news or updates regarding this but there isn't. I complained last Saturday, they rang me Monday and weren't very much help so I complained to CEO of LBG.

I'm yet to get a response but I know it's been passed to Exec Complaints dept.

jonesMUFCforever

wizzywig27 wrote: »

One would then argue that changing the structure to fleece customers and send them into a debt spiral is not responsible me ding either.

I am still awaiting my letter so I have no idea what their plans are for me!

It is a fact (by your own admission) that you are already in debt so any spiral is your own responsibility.
You have contacted Halifax to complain but have you actually sat down and started an income and expenditure sheet to see what savings you can make to put towards your debt?
The overdraft that you have spent is authorized - any excess over that is unauthorized - they gave you the limit any responsible spending there at all?

IMO you need to get your head out of the sand and start working at reducing the overdraft.
Why not go over to the debt free wanabe board - plenty of help on there for you?

wizzywig27

Thanks for that. I will politely answer your questions:

I have not once in any of my posts or in any of my conversations with the bank suggested it is their fault, the 'debt' is mine and will paid I am simply asking them not in increase my charges by 200% - by having an any form of credit surely you are in debt.

Regarding the spreadsheet yes. I have done nothing but. I have tried shifting money I have tried borrowing money (from family) but unfortunately I always seems just break even - however these charges will put me into negative for the month.

To clarify I have never gone into my unauthorised overdraft so not sure where you have got this info from?

I can clarify my head isn't hurried in any sand and I am TRYING to work on reducing the overdraft however me complaining to try and get that bit of help I may need seems to have upset you a little.

I don't feel like going to the debt free wannabe board will help. There is nothing they can advise I haven't done already. Even so far as changing my dual fuel tariff so I get my gas and electricity 1p cheaper per unit. Trust me, I've done it.

amanita

So you have a £2k overdraft, costing you £1 per day. This is around 18% annually, so you could do a money transfer from a credit card for that amount, even at more or less full interest rate for any non-gouging provider.

Halifax themselves offer the Clarity with no fee for transfers, but you can get several interest free ones that'll give you a bit of breathing space, though of course they will force you to pay on the order of at least £50 monthly to start paying it down. Use the tool to see which cards you might get, and just try a couple.

I have to say however, that your best bet is probably a personal loan; even if you had terrible credit (I don't know what yours is like) you'll probably get an 11% offer if you're seriously unlucky. Get into branch or do a quote on the phone- online is usually far too cautious. £2k should not be hard to get as a loan, especially if yountell them you want your overdraft facility removing at the same time.

If you have no luck, then look at third party loan providers, many on this website, but be careful not to hit too many with applications.

Candyapple

For those who are stuck trying to pay their overdrafts off, have you tried plugging your details into the eligibility calc for a money transfer card?

https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.163107828.991681704.1502807476-1755837396.1502440970

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

ffacoffipawb

Tom99 wrote: »

[FONT=Tahoma, sans-serif]I have done a quick calculation and it looks to me as if the APR is about 67% i.e. if you had £1,000 outstanding for 1 year you would owe £1,666 at the end.

[/FONT] [FONT=Tahoma, sans-serif]Is that right or have I made a mistake?[/FONT]

£1,000 grows to £1,681 (assuming daily interest rounded down to lower penny) so 68.1% which is close to your figure.

£1,000 grows to £1,686 (assuming daily interest rounded up to higher penny) so 68.6%.

Based on a 365 day year and no repayments made.