New Halifax Overdraft Charges

wizzywig27

amanita wrote: »

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.

Hello. I have spoken to them, they are unable to offer me a loan - even if they could its still really high interest.


I have also tried loans on this site, I am not eligible.


I am afraid I don't agree with your last comment, I am trying to fix it, but I am not sure how many times I can say these charges have the potential to send me into further debt. If I wish to complain further I will do so, as the charges are UNFAIR!

Dobbibill

For those considering a loan to avoid the charges, or thinking about withdrawing cash on a credit card at a high rate, please think carefully before you apply.

Some posters have been told to ring back closer to the time to see what support can be offered then - this would be the wiser move.
You cannot borrow your way out of debt, especially if you have no disposable income at the end of each month.

There may be additional support at the time for customers in financial difficulty.

Take a deep breath, complete a SOA so when the time comes, you have all the details in front of you. Consider your options cautiously.

I do wish you all, all the best.

YorkshireBoy

There are generally only 3 ways out of debt:

(1) Earn more
(2) Spend less
(3) Restructure the debt

So far, on (2) your response is...

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.

...and on (3) you've said...

I have spoken to them, they are unable to offer me a loan - even if they could its still really high interest.

I have also tried loans on this site, I am not eligible.

So that just leaves (1). What are you doing/planning to do on that front? 2nd job perhaps? Overtime in your present job? Sell something?

Jlawson118

People are in an overdraft for a reason, because they need to pay a debt off. As I understand Halifax are a business and need to make that money back, ripping off their customers by charging them a lot more without there being a middle ground to help customers but support themselves as a business as well. That's out of order and will probably lose quite a lot of custom with that.

eskbanker

Jlawson118 wrote: »

People are in an overdraft for a reason, because they need to pay a debt off.

That's over-simplistic - there are many reasons why people will use overdrafts but anyone who thinks that they can use one 'to pay a debt off' is missing the point, as doing so would just be moving debt from one place to another rather than actually paying it off. An overdraft is a debt, it's not a way of managing debt, and it's not a particularly good one if other options are available, given that it's expensive and repayable on demand, which is why they're positioned as a way of handling short-term cashflow issues rather than accommodating long-term debt.

Jlawson118 wrote: »

As I understand Halifax are a business and need to make that money back, ripping off their customers by charging them a lot more without there being a middle ground to help customers but support themselves as a business as well.

Clearly those who will have charges increased as a result of a changed tariff will feel unhappy about it, but that doesn't in itself make it a rip-off or unfair. Chances are that Halifax will have modelled the number of heavily-overdrawn customers who are now more likely to default as a result of higher charges, so they won't be under any illusion that everyone can afford this, i.e. they're not necessarily doing this as a revenue-generating exercise and may ultimately be looking to reduce the overall risk of their book.

Jlawson118 wrote: »

That's out of order and will probably lose quite a lot of custom with that.

See post #30 above....

Jlawson118

eskbanker wrote: »

That's over-simplistic - there are many reasons why people will use overdrafts but anyone who thinks that they can use one 'to pay a debt off' is missing the point, as doing so would just be moving debt from one place to another rather than actually paying it off. An overdraft is a debt, it's not a way of managing debt, and it's not a particularly good one if other options are available, given that it's expensive and repayable on demand, which is why they're positioned as a way of handling short-term cashflow issues rather than accommodating long-term debt.

Clearly those who will have charges increased as a result of a changed tariff will feel unhappy about it, but that doesn't in itself make it a rip-off or unfair. Chances are that Halifax will have modelled the number of heavily-overdrawn customers who are now more likely to default as a result of higher charges, so they won't be under any illusion that everyone can afford this, i.e. they're not necessarily doing this as a revenue-generating exercise and may ultimately be looking to reduce the overall risk of their book.

See post #30 above....

An overdraft is a debt, yes. There is a reason for a person to be in so much debt though, and nobody wants to be in that position whether they are. Though if somebody is paying £30 per month interest on a large debt, that's going in Lloyds' pockets so what does that matter to them if somebody is in their overdraft and paying these charges? These people live off allowing people to be in debt. It's a way of business, and you're right in saying that they probably won't be shaking in their boots, but to me, I deem it unfair whilst they 'laugh their way to work (the bank) knowing they're taking advantage of people in a poor situation. No matter how they originally got into that debt.

Chances are, I'm paying into my savings and that's being leant to somebody who's paying it back with interest. Will I see the extra interest? I doubt it

PeacefulWaters

Jlawson118 wrote: »

Chances are, I'm paying into my savings and that's being leant to somebody who's paying it back with interest. Will I see the extra interest? I doubt it

Highly unlikely as they've told their shareholders they're going to make a lot less money from charging overdrawn customers.

wizzywig27

That may be the case but they are not concerned at what they are doing to their customers. I've banked with them 10 years and been find until they do this

cjmillsnun

wizzywig27 wrote: »

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.

Good admission of fault is a good thing.

A £2000 overdraft every month is unsustainable if they raise their charges or not. You have a serious debt problem.

Yes by having any form of credit you are in debt, but it is how you manage the debt that is important.

For example I use credit cards. I have about £280 left to pay off on a computer I bought on a card. This got transferred to a balance transfer card and I pay zero interest on it.

I also put my monthly spend on fuel (I do 550 miles per week commuting) on another credit card. The balance of this card is repaid in full every month. Again this costs me nothing.

The amount spent on fuel and what is left to pay on the computer are debts, but they are sustainable and at zero cost.

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.

And this is your problem. You need to know where every penny goes. This is where the spreadsheet comes in handy. You can then see where you might be able to economise. This is something the Debt Free Wannabe board is very good at and something you really can learn from them. It isn't just about getting the best deal on utilities, it is knowing where your money is spent, and from that working out a plan that costs less to actively drill down the debt and perhaps even save 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.

As above, you have not.

That may be the case but they are not concerned at what they are doing to their customers. I've banked with them 10 years and been find until they do this

At the end of the day they are a business and one that doesn't want to take unnecessary risk. You can bleat on about how unfair the charges are, however they are re-evaluating their customer base. You may well have found that you are not desirable to them any more as you are a high risk customer. They have the right to do that. You already said that no other bank will want to help you as much.

You also have to think about what they may help you with nearer the time. If they give you a few months interest free, you need to have your spending plan sorted (get that spreadsheet done!) to get that overdraft down to a sustainable level. Then once you have done that, you can stick 2 fingers up at them and go to a different bank. Be warned though, most are realigning their overdrafts in a similar manner.

wizzywig27

Thanks. I'm.going around in circles so I'm going to duck out for the moment. Thanks for your input though