New Halifax Overdraft Charges

wizzywig27

Candyapple wrote: »

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

Hello, I've done this, no dice I'm afraid

ffacoffipawb wrote: »

£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.

Yes, currently paying approx. 18% rising to 68% - approx. 200% increase.


What annoys me the most about Halifax is when I have spoken to them they keep stating that 90% of customers will benefit, my response is whatabout the other 10%.


One other quote was 'the FCA back us'!! The FCA asked for rediculous sums on unarranged overdrafts which fair play you have resolved. However the money you will lose on unarranged overdrafts you will certainly claw back on people who are deep into their overdrafts.

Thrugelmir

wizzywig27 wrote: »

What annoys me the most about Halifax is when I have spoken to them they keep stating that 90% of customers will benefit, my response is whatabout the other 10%.

Banks have been under pressure to treat customers more fairly. Then only more equitable that the higher the debt the larger the cost. Banks aren't responsible for the manner in which people manage their own finances. The 10% will no doubt have to be worked through on an individual basis, case by case.

amanita

You need to get back on the phone to them. Ask for a personal loan to cover it, and cancel the overdraft.

If they won't help, search personal loans on this site. I know you've tried credit cards, now it's time for a different approach.

On the phone, don't make any more complaints. The current system is stupid and actually rewards customers who are further overdrawn with lower rates, while heavily punishing those with small overdrafts (i.e. using them how they should). I'm sorry you don't like that the charges have changed, but it's time to get over that and fix it.

hilbil21

I have a credit card which doesn't offer money transfers.... but I am starting to wonder if taking cash out at the atm and paying it into the account with the overdraft on it would be financially beneficial? £1800 means I would be paying approx £75 a month in charges on the overdraft.. I am stumped

amanita

NO. If you're totally stuck, carefully check the rates- sometimes purchases are 18% and cash is 27%.

Also, check that the cash limit is enough - usually lower than the purchase limit.

Finally, check the 3% or so they'll charge you on top.

hilbil21

The cash interest rate is 26.9 but Im wondering if that's working out less than these new charges!

amanita

It will, but will cost you much more than a loan. Try M&S as an example, they aren't majorly fussy, and will just jack up the interest rate if they don't view you as good security. Ironically, you would probably be better off borrowing 7.5k, as the interest will be less, but don't spend it! Call them and talk about your options.

A £2k debt to be honest shouldn't ruin your credit history so a loan is possible, but loads of cash withdrawals might.

hilbil21

Oh a loan would definitely be cheaper.... but I already have 2! My credit rating is fab I just have too much debt just now. So its either paying off the overdraft each month alongside these huge charges or doing the same with a credit card

myars

i havent had a loan for years mr lazy living off a largish overdraft @18.9% , i got so mad about these increases that i now have a loan to cover at 4.4% if all goes well i will clear the loan and have no overdraft this is going to cause huge problems for some though its a personal thing but this route is my best .

amanita

Best thing to do is to get one large loan to cover everything. Rates decrease as you go up each fund bracket, and thus means everything will fall under a single larger payment. Obviously you should check it's a lower rate however, and don't drag out repayment or it'll cost loads more!