Halifax bank money transfered from another part to my account in error

RayWolfe

I am amazed at how many people think, nay, believe, that having an overdraft in an inalienable right!
An overdraft facility is something offered as an assistance to most people who may occasionally need one. It should not be used as a loan. Loans are there for that purpose.
So many people have a constant overdraft for which they are paying far more than they would for a loan. So many people have a facility which they then breach and then complain. So many people are poor credit risks to whom I would not lend money at any rate of interest so why should I invest in banks who do?
Does this sound harsh? Sorry if it does but there are two approaches to overspending:
1 Oh, never mind, banks are beastly, carry on spending, you're worth it.
2 Get a grip on your spending, make a new years resolution to do better and life will become a pleasure again.
Happy new year everyone ... and always read and understand the Terms & Conditions.

rog2

RayWolfe wrote: »

I am amazed at how many people think, nay, believe, that having an overdraft in an inalienable right!

I am surprised at your amazement, RW.
Many Banks will offer an overdraft facility as a means to tempt customers into changing from another Bank - hardly an 'inalienable right' I agree, but certainly an integral part of twenty-first century banking.
Many people, and even more businesses, rely on the overdraft facility, and whilst most account holders would try their level best not to run their accounts constantly in overdraft, they rely on it for their 'unplanned' financial demands.
Of course there will be Terms and Conditions attached to any overdraft facilities, but Banks should be more 'customer-friendly' when it comes to reviewing the facility. If a customer has always operated within the terms of the overdraft facility, surely the Bank could agree to a gradual reduction of that facility, rather than a sudden suspension. In any case, it is not unreasonable for a customer to expect to be able to discuss the facility with a 'decision-maker' rather than a script-reading call centre employee.
Overdrafts make money for the Bank - otherwise they would not be offered.

RayWolfe

You must know that lots of people fail miserably to "try their level best <snip> unplanned financial demands" and many don't even try. I have a facility and have needed to use it on very few occasions, mainly because I plan my financial demands.
Have you really known large numbers of cases where a customer operates within the T&Cs of an overdraft and do not "live" on it, when a bank then demands it back? Does it really happen that way or do people get into that sort of trouble when they're in that sort of trouble?
I don't disagree that banks could be friendlier and have managers to whom we could speak but a few years ago we wanted free banking and the price of free is much higher than people realise.
As for "gradual reductions" etc., my experience is, if you speak to your bank early enough, before the problems start, you will get a sympathetic hearing. If you leave it until too late then it's too late.
Most problems are caused by ignorance of the contract, not opening, let alone reading, letters and burying heads in sands ....
.... I do know, I've been there.

Mikeyorks

rog2 wrote: »

Overdrafts make money for the Bank - otherwise they would not be offered.

A curious anomaly therefore, that they are reducing / withdrawing this one? So, distilled from your own logic .... they must have reason other than just profit to do so?

rog2

Mikeyorks wrote: »

A curious anomaly therefore, that they are reducing / withdrawing this one? So, distilled from your own logic .... they must have reason other than just profit to do so?

We don't know that, MY, but the 'reason' could be nothing more sinister than a computer software programme which has told the hardware that the agreement period has ended.

MarkyMarkD

If the OP asked for a fixed term overdraft in the first place, then the bank is 100% right to withdraw it on the agreed date. If the OP had wanted / had been eligible for an open-ended overdraft in the first place, they'd probably have got one and this problem wouldn't have arisen.

People can't have their cake and eat it. Banks can't both be wicked for lending too much and encouraging personal debt, and for withdrawing overdraft limits and making their customers' debts unauthorised.

rog2

lynne1985 wrote: »

sorry if this has been answered in previous posts, i have a halifax visa bank account which recently had £1000 overdraft facility, this overdraft expired on 21st december while i still owed just under the £1000, ..... but halifax say they will not reinstate the overdraft unless i pay back the owing amount, but even at that they will not guarantee that i will get it back
thanks for any help
Lynne

Hi Lynne - first of all, I have to say just how disappointed I am at the lack of compassion, for your situation, that is being shown by the other posters on this thread. I can only assume that they have some connection with either the HALIFAX or other High StreetBanking Organisations.
I posted on your thread in responce to a request, by SalsaDanca, on the DFW board, and I would seriously suggest that you open a new thread, on the DFW board, where you will receive some genuine support for the situation that you now find yourself in.
I have, already, stated my opinion of the HALIFAX for withdrawing your overdraft and I stand by that opinion - they have treated you abysmally.

Right then - let us now look at your situation in a more detached manner:

In withdrawing your overdraft facility, HALIFAX have put you in a situation of debt, which they require is paid back immediately, and appear unwilling to re-negociate any further overdraft facility until that debt is 'cleared'. Seems like a 'catch 22' situation to me, but not one that can not be confronted.

If your wages/benefits are being paid into your account, then I would suggest that you open a new account, with another Bank, which is not financially linked to HALIFAX, and arrange for any payments to go into that new account with immediate effect.

You now need to treat the HALIFAX account as a 'debt' and should make an offer of repayment, by regular and affordable monthly payments.

Debt is not a crime and you should seek advice, from one of the Debt Counselling Charities, such as CAB http://www.citizensadvice.org.uk , CCCS http://www.cccs.co.uk (0800 138 1111) or National Debtline http://www.nationaldebtline.co.uk (0808 808 4000).
The advice, given by these charities (all of which are endorsed/reccomended by Martin LEWIS) is professional, impartial and free.
These organisations will be able to supply template letters for you to send to HALIFAX (You can see them on the National Debtline website) asking them to accept a monthly repayment plan, and to freeze interest and charges.
You should, also, be looking at the 'Reclaiming Bank Charges' forum where you may, subject to the ruling of the current test case, be able to claim back any penalty charges that HALIFAX have charged you over the last six years.

I appreciate that this will not solve the problem of 'paying back your friend' although you may find that another Bank could offer you a permanent overdraft facility.

And come and Have a look at the DFW Board - you will be made most welcome.

lynne1985

thanks everyone for all the advice, i'm going to go into the bank and hopefully get something sorted. After the way halifax have treated me i will be closing the account as soon as the balance is paid off. I understand that overdrafts can be withdrawn at any time but surely halifax can tell that you haven't logged into your online account for a while and send a letter by post to let you know of any changes. As i get paid monthly i wil not be paid again until the end of January as my december wage was early than usual due to the festive period. I appreciate everyone giving me advie but those of you who don't know the full situation and have given negative comments really should look at the full picture, this is not me looking for a way out of paying halifax the money that i owe them but trying to find a suitable situation to pay my friend back asap. As i already said i dont get paid till the end of Jan therefore my friend is going to have to wait till then to get the money back as is halifax. Thanks again everyone

RayWolfe

I hope you get it sorted lynne1985.
Just because some of us didn't say "Oh how terrible, never mind" but instead gave some facts about terms and conditions as a general discussion not related necessarily to you, does not mean anyone is unsympathetic.
Look back, if you have time, and find just one, as you describe it: "negative" comment in this thread. If you find one, let us know, I'm sure whoever posted it will apologise. And certainly no one even hinted that you may have been unwilling to pay back your debts.
Meanwhile, get to the bank as soon as possible, you should have done it before now, but I guess you've been busy.
I hope the new year is better for you ... and don't threaten the bank with closure or charges refund. It will not improve your chances of a good outcome.

Mikeyorks

Concur with that. And ..... never trust people who permanently litter their posts with CAPITALS.