Help with what feels unfair treatment - Halifax overdraft

adamlewis216

Hi everyone,

Hope you can help.

Quick explanation

Over Draft extension provided 5 times on a new contract provided on the at the time of extension and on terms I was happy with.

However Halifax had already changed these terms, coming into force on 1st Nov 2017.

Why did they not tell me at the time of application on 5 occasions that the terms were changing for worse terms.

So in detail.

I have an issue that I think is pretty unfair in relation to an overdraft provided by Halifax reward account.

I am at the max of my over draft. I put enough money in my account to pay for my DD bills.

I checked my bank account today to make sure all were paid and was surprised to see that my car insurance monthly premium was not paid. I looked at the amount left of my overdraft and I was 40p short.

I then noticed a charge named Daily O/D fee. £3.59.

This was unusual as I pay a monthly O/D fee that is based upon the amount and is fixed. ie. 2k - 3k overdraft. Fee of £3 per day.

I had just paid the months OD fee and then was charged for this.

In panic I called Halifax to ask what this fee was.

I was informed that as of 1st Nov 2017 they have moved to a fee charged daily, based on a % of O/D outstanding.

I was told I had been informed via letter on the 9th August of the change of terms of conditions.

I accept that they can change the terms as they please with notice.

Here lies my issue that I think is unfair.

Halifax made a business decision to change the terms and conditions and notified its customers on 9th August.

I must have missed the letter.

I extended my O/D five times after this date.

15/09/2017
18/09/2017
20/09/2017
02/10/2017
05/10/2017

All these extensions occurred after the 9th August.

On each occasion I was asked to read the terms and conditions, make sure I fully understand them and that I am happy to continue.

The terms and conditions were the old terms of conditions with a capped monthly fee. There was no mention or warning that the terms had already been changed and would be different from 1st November.

I have email confirmation of the terms for each one.

So baring in mind I would suggest that most people extending overdrafts are in a somewhat vulnerable position with little to no cash flow.

How can Halifax agree to the overdraft with my 5 times on one set of terms and conditions, that I am then budgeting for, while all the while THEY KNOW that as of the 1st Nov it is a completely different product.

Surely the agreement we both entered into should supersede any letter I missed in August, or the impending changes to the agreement should have been notified to me on each time I extended, since they were aware of this change.

I now have to find a daily amount each day and am paying back at a higher APR than what I agreed to and this throws out all my budget.

The call taker said it was my fault as I should have reffered to the letter in August and not the overdraft contracts I was provided at the time of each overdraft.

I escalated to the complaints department and said I feel like you have mis-sold me the overdraft, and have taken advantage of me in my vulnerable position. You allowed me to extend my overdraft on one contract / agreement only a few weeks ago knowing this was in fact imminently about to change.

She noted my complaint, but said they don't feel they are wrong, the daily charge still stands and I would have to find the monthly fee.

I explained that the FCA may disagree, and that I have been treated unfairly by them.. but she just said she would put her reply in writing and I could then take it to the ombudsmen.

Can anyone tell me if I am right here?.. is it fair?

I am not trying to get out of the O/D I just have not budgeted to pay daily charges, nor at a higher cost.

Any advice as to whether it is worth taking it any further??

Happy to give any further details or answer any questions,

Thanks all.

middleclassbutpoor

First of all it will be the FOS you escalate your complaint to if you are not happy with the final response you get.

What are you looking for resolution to this given that they have applied the correct charges and cannot have known you didn't receive the letter?

If you have evidence that they asked you to read out of date T&C's at every point following their letter of the 9th of August then you may have something to complain about as they should have updated their t&c's or put something in to explain the changes. To argue this will take time to resolve so you will need to look at how you move this forward now.

Your biggest issue to me looks like you need to sort your finances out and would suggest that you may benefit from posting on the debt free wannabe board if you need further guidance on how to get your finances in a position where you no longer need to rely on an overdraft.

Ultimately if you are not happy with the overdraft terms, you are well within your rights to move banks to one that offers terms that you are happy with but as above, you need to address the bigger issue here and whether you have a case or not will be decided by the FOS ultimately if you don't get the answer you want from your bank.

boo_star

adamlewis216 wrote: »

I am not trying to get out of the O/D I just have not budgeted to pay daily charges, nor at a higher cost.

What would you have done if they'd told you each time about the upcoming changes to the T&C's?

Edi81

Seems to me that you are needing the overdraft a tad too much.
Why the need for all the increases? Appears that you need to get your spending under control.

adamlewis216

Thanks for your responses..

In answer to what would i have done if i was aware that they were about to change to daily charges at a higher charge..

I would have still needed money. So i likely would have either gone with the overdraft extension but would have been prepared for the sudden influx of charges on 1st november.

Or i would have changed bank acount, or got a loan that is monthly so i can better work to my monthly wage.

In answer to the other response.

I have a debt reduction plan in place and restrict my spending to ensure i can meet my monthly obligations.. all be it very tight.. i am due a bonus soom that will sort out the mess i am in.. and i will not go down this line again.

However your advice may become more prevalant if this continues and i may need ti seek help to manage my debts.

In answer to the other part of the reply.

Yes i have evidence of the terms. Each time i applied for an extention on my halifax bank they gave me the terms of a monthly fee at 3 pounds a day for the limit i was within. I paid last months on the 1st nov. Now i am being charged 7p per pound and being charged on a daily basis.

The resolution i want is for them to accept that they should have notified every customer extending there overdraft of the change. And underdtand that their failure to updatr their app terms and conditions are causing me hardship and probably many others so they should accomodate us with monthly charges to allow us time to resolve? Is thos fair.

middleclassbutpoor

I think to have 5 extensions to your overdraft between 9th August and 3rd November would indicate that your debt reduction plan isn't working. Sorry to be blunt.

Can you get a money transfer card to move the overdraft onto for a short period of time until your bonus is paid?

I think that it's probably worth sending to the FOS based on what you have said but it could take months to know the outcome and there is no guarantee.

Would recommend that you go over to the debt free wannabe board and post your SOA to get some further advice on your debt reduction plan as it appears you are spending more than you have incoming.

DCFC79

Why are you in debt, is it likely to crop up again in the future ?

adamlewis216

The honest answer is that my commision plan at work was changed to a bonus structure. It happened instantly and i wasnt prepared. So i moved from a great monthly wage to a basic wage with quartily targets.

This also happened at a time when there was a drop in sales acroos the board.

So this has caused a short term cash flow issue that has been ongoing for a few m9nths.

I have hit target to get my next quarter bonus and all will be resolved.

I will then have to adjust to the new payment plan and change my expenditure to match.

I can over come the problems haligac have caused and luckily have a good credit rating and one way or another or pay day loan i can get emergency funds.

I guess my main issue is a moral one.. had i been on the brink with a poor credit rating or no abilty to pay the daily charge.. i wpuld be in a right mess by something that i thi k is so misleading. If i was destitute and applied for an over draft on 31/10/2017 i would have recieved terms that would have said i would be on 3 pounds a day.. paid at end of month.. then a day later start getting charged daily at way more..

Guess i am really annoyed that they are allowed to do this when most people getting over draft extensions are financially vulnerable like i have been

boo_star

adamlewis216 wrote: »

Thanks for your responses..

In answer to what would i have done if i was aware that they were about to change to daily charges at a higher charge..

I would have still needed money. So i likely would have either gone with the overdraft extension but would have been prepared for the sudden influx of charges on 1st november.

Or i would have changed bank acount, or got a loan that is monthly so i can better work to my monthly wage.

I’m not sure another bank would offer you an overdraft, or at the level you need when you’re sat in a £2-3k overdraft every month. It doesn’t look good at all.

As to the loan, why haven’t you already done that? You’re effectively paying £1095 in interest a year via overdraft charges, which is massive, even for £3k.

Contrary to what you might think right now, Halifax’s failure to re-inform you of the changes to the fee structure might be exactly what you needed to stop yourself from going with the status quo and getting ripped off in the process.

YorkshireBoy

adamlewis216 wrote: »

I checked my bank account today to make sure all were paid and was surprised to see that my car insurance monthly premium was not paid.

Have you paid it by other means today, or at least contacted them?


What if they cancel the policy? That could create problems for years to come when you're asked "have you ever had insurance cancelled, declined, or special terms applied?"

adamlewis216

Absolutely agree..

It is an awakening.. the reason for not going for a loan at that point is that i only needed the overdraft for a few months.. and was extending it like a pay day loan.. hence the dates.. after the quarterly bonus all will be back inline.. but i am now aware what a risk it is relying on an O/D.

And yes i contacted the insurance company straight away and made payment. The last thing i want is a cancelled insurance policy.

Thank you all for the advice and i will be fine.. pay off the O/D with my bonus and get back on the straight and narrow..

I guess this post is really about.. should i challenge the way they have dealt with this so thay they learn this can really mess other more vulnerable people living on O/D up so it doesnt happen again.. or are they right and i should just leave it?.. and over reacting.