Halifax downgraded my account

bunnygirl007

Hi, I'm new so not sure i'm in the best place for this question.

I have (or had) a normal current account with Halifax which they persuded me to open when I took out a personal loan with them a few years ago. My main account is with another bank but I found this one quite handy to put odds and sods in that i wanted to keep seperate. I have a £100 overdraft facility with it and in July I accidentally went over the limit by £3 for a couple of days for which they charged me £30 - don't worry, i got the charge back .

At the beginning of November I tried to pay for something with my debit card and the machine declined it because it had expired. I was surprised as not having recived a new card I hadn't realised it had reached its expiry date. So, not being able to phone branch directly I went off into town to notify them I hadn't received my new card (thinking that with the postal strike it may have got lost). They asked the computer to send me a new one and a few days later it arrived in the post - only it wasn't my usual visa debit/cheque card it was a 'cash card' :mad:

So, off I went to the bank again thinking it was an error. But oh no, they looked into it and said my account had been downgraded!!!!! I asked why this had been done and why i hadn't been notified - they said it was probably because i don't use my account enough (there's transactions every month) and lots of people had had their accounts reviewed and altered and i would have received a letter from them. i assured them i definately have not had a letter and as I do internet banking i always get an email notification of any letters to do with my account. I said I thought their customer service was bad and discourteous for altering my account without telling me and giving me the opportunity to decide if i wanted to remain with them, i threatend to leave and the lady i spoke to said she would look into it further and get back to me. A few days later she called me and said they would not alter the account back to a current account and could not give a reason. she pointed out i still had my OD facility (but for how long?) and a cheque book and the cash card could be used almost the same as a visa debit card !!!! :rolleyes:

Well, I had just about come to terms with this situation until today when i paid a cheque into my account using their machine and the receipt said the funds from this cheque would not be available until DECEMBER 3RD !!!! (10 days from now). Thinking this was a mistake I went to the desk where they told me this is how long it takes for a cheque to clear on a 'cash card' account. I looked at my account on the internet as i paid another cheque in last week and sure enough that doesn't clear till next week (again 10 days or more) - not having been notified of my accout downgrade i was also not aware of the new T&C's either and this has now put me in a difficult situation as i need to pay someone by cheque tomorrow and its going to send me overdrawn because these funds that I've paid in in good time aren't going to be available which in turn means they will be charging me for being overdrawn despite the fact i've attempted to make sure the money is there.

I have raised my dissatisfaction at the bank but all they have done is given me leaflet explaining how to raise a complaint (which i did earlier this evening on the phone). All in all not a very good cusotmer experience. I don't understand why they have done this with me, I have a personal loan which i have never defaulted on, a credit card which they have just raised the limit on, sharesave and my son has a savings book there but they are just making me feel like they don't want my business.

So I was wondering if anyone else has had this or someting similar happen to them and if so what did you do about it?

(Today in the branch i visited they offered to see if they could get me a current account again but said it would involve a credit checkand if successful i would have to have anew sort code and account number!!!!!??? I said no way.)

Right that's me off my soap box now - not bad for my first post!!

Snaggles

Hi bunnygirl!

Unfortunately they are probably completely within their rights to downgrade the account. Many banks are now tightening up their lending criteria and reducing facilities, particularly if your salary isn't paid into the account.

However, 10 days to for a cheque to become available to draw against is pretty shocking, and blatantly money making.

Now, I would never normally say this, but if you HAVE to pay someone tomorrow, would it be worth ringing your main bank and asking for a temporary overdraft increase until you can transfer the funds over from the Halifax? Obviously you would have to check if they would charge you an arrangement fee for this, but at least that way you are not incurring a fee for going overdrawn/drawing against uncleared funds, and potentially affecting your credit rating.

The reason I'm suggesting asking your main bank is that if you have a good track record with them, your salary is paid in there, and you have a repayment source (the funds which you will transfer over once the cheque is available), they may be more willing to help than the Halifax.

And as long as you DO make sure you transfer the funds over, it will only cost you a few pence worth of interest. Just make sure they do reduce the limit back down afterwards though if there is any possibility you would find a higher limit a temptation to spend (I would...lol).

Mrs._Irwin

I'm perfectly happy with the cardcash account, as I don't want an overdraft, and having a cheque and a basic debit facility is fine, for me. However the Halifax have recently changed procedure, and won't talk to me at the counter, which I found very upsetting. Basically, if I want to do anything regarding my account, eg. changing standing orders, I have to do it over the phone. It is completely alienating, but the fact is, they aren't particularly bothered about having our business, because they really aren't making that much money out of us. I've had an account with them since I was a child, but hey, so much for loyalty, they're just a business - stuff 'em.

Mrs. Irwin

bunnygirl007

Thanks for your replies. I think I have got over the problem of the cheque as I have worked out that by the time it is presented the first of my cheques should have cleared - i will be in my overdraft but only for a few days. So panic over on that front

However, it still doesn't excuse the bad customer service and your comments Mrs Irwin re not wanting to talk to you at the desk just adds fuel to the fire. if we are so worthless to them why don't they ust ask us to take our business elsewhere? I had been thinking of transferring my main banking over to them from Yorkshire where i have been for many years but no way now.

I appreciate they may be within their rights to alter your account but surely the rules also state that they will notify you of such a decision. i think they stink!

Thanks anyway. I look forward to chatting to you all again soon as I am starting to pull my head out the sand and face the music. next step to get that SOA done! :eek:

silkglade

I had nothing but problems with them a couple of years ago. We had a card cash account and had never gone overdrawn or had an overdraft, never had any charges either, was with them for 6 years.

I applied to them for a Current account and was refused!!! straight away, they wouldn't tell me why.

We were then victim to fraud (on the day I gave birth to my daughter) and was only a couple of days after pay day :mad: whoever it was took ALL our money for the whole month. I phoned up and got through to them but they would not help me at all, I got loads of charges for bounced direct debits that they said they would allow (which all got refunded eventually) and got my money back - they told me it would be about 6 weeks but it took over 7 months , Just as well my mum had some cash she could lend me otherwise the 5 of us would not have been able to eat!

Now with Nationwide, got accepted with an online instant decision, offered the flex account with overdraft and offered a credit card on the spot too. I have been with them ever since and had no problems with them at all.

bunnygirl007

Strangely not long after i has my account opened i was victim fraud too. i had loads of paypal transactions on my account to the tune of £600+. it took quite a while but eventually i got my money back. I am waiting with interest to see how my 'official' complaint is dealt with but won't get over excited. Given my recent treatment I think I'm going to look around for another account and close this one. Wish i could get rid of the loan too but still have about £9800 to pay :eek:

Any suggestions for a new account??

Homework

I went to Clydesdale Bank (Yorkshire in England). Great customer service. Still have HBOS account so I know about cheque clearance times, it even includes Inland Revenue cheques. You'll see the difference in the way you are treated by having a basic account. You can ask something and then show your card and the attitude changes. You will also find if you are operating the account ok you will be asked anytime you are in to upgrade the account as the computer will not know you have been downgraded.