Halifax Closing Overdraft Accounts

Milky_2

HI EVERYONE

I JUST RECIEVED A LETTER FROM THE HALIFAX TO SAY THAT THEY ARE CLOSING MY OVERDRAFT FACILITY ON MY ACCOUNT - WHICH I HAVE HAD ON MY ACCOUNT FOR 8 YEARS. I HAVE CALLED THEM ASKING WHY AND THEY SAID THAT MY ACCOUNT THAT I HOLD WITH THEM DOES NOT QUALIFY FOR AN OVERDRAFT - MY WAGES GET PAID INTO THIS ACCOUNT EVERY MONTH AND CLEARS THE BALANCE I HAVE NEVER GONE OVER MY OVERDRAFT LIMIT.... I HAVE TRIED TO APPEAL THIS AND I HAVE BEEN REFUSED!

NOW THEY REQUIRE FULL PAYMENT OF MY OVERDRAFT - £500 FOR THE 8TH MAY - I WILL BE WRITING A LETTER OF COMPLAINT AND TO SAY THAT THEY WILL BE RECEIVING A PAYMENT OF £5.00PER MONTH TO REPAY MY OVERDRAFT OFF. I WILL BE CLOSING MY ACCOUNT COME NEXT WEEK

CAN THEY DO THIS????? I AM VERY ANNOYED AS I HAVE BANKED WITH THIS BANK FOR 18 YEARS AND THIS IS THE REPAY THE LITTLE PEOPLE...:beer:

cifpower

Yes they can. All overdrafts can be recalled on demand by the bank. Just paying the overdraft back at the rate you suggest risks being hit with a Default and/or a CCJ which will screw up your credit file for 6 years.

silverbullit

I am increasingly feeling that the credit crunch and the decision on the bank charges case today, which has gone against the banks, may be having some influence on banks' decisions in this regard.

I've had exactly the same problem with A&L - http://forums.moneysavingexpert.com/showthread.html?t=878623

Meltdown_2

And unless you pay off the overdraft in full, you could find that you are not able to close the account - meaning a possible threat of charges being applied to it.

My_Own_HERO

This is very very strange and shows no national policy.

Today I went in to my local Halifax branch and they allowed me to increase my overdraft, albeit temporarily and only by a £100, to cover something. I didn't want to get charged an unauthorised fee so just went in to ask. I am trying to get myself out of a chronic financial spiral (in the downwards direction!).

Like you, I have regular income so they know I can pay it back (eventually!), so I don't see the 'sense' in this policy. Is this just your branch do you think? When they make a decision we're at their mercy :mad: .

Che75

Milky - is it a Cardcash account? I have heard a few other people mention Halifax are revoking overdrafts on that type of account. It really was never supposed to qualify for any credit services and they are having a crack down. If this is the case, have you tried applying for an upgrade to a full current account? If you're accepted then apply again for an overdraft.

If you already have a full current account then your overdraft limit is probably reviewed annually and you've been unlucky this time. A lot of banks do seem to be revoking credit from people in an attempt to minimise their losses with the credit crunch. Halifax reduced my credit card by over a grand recently.

If this is already a full current account I would apply for a current account elsewhere and see if they will match the £500 limit. This will allow you to repay and close the Halifax account. I agree with other posters that I wouldn't risk having charges added unless you really genuinely can't afford to repay the £500. There's little point trying to take a stance - it won't hurt them, but it will potentially hurt you and your credit rating!

carrie.1985

hi milky is this a cardcash account? as far as i am aware all cardcash customers with an overdraft facility have received these letters. most of the time this has occurred as the account was once a full current account that got downgraded to cardcash but the overdraft remained although cardcash accounts don't generally offer this facility. from what ive heard today this has been investigated as there are lots of customers in the same situation as urself and the overdraft is going to be put back on until the beginning of 2009!!! call telephone banking and they should be able to confirm this for you as some branches do not offer counter service for cardcash customers.

hope you get this sorted!
xXx

heppy23

You need to come to some arrangement with them, you can't just dictate the terms on which you will repay it. Otherwise they will withdraw it and you will get hit for interest and overdraft fees left right and centre.

I had a £2600 OD withdrawn by the abbey ages ago. I agreed to pay it off £50 a week.

m00m00

I had a letter stating they are going to close mine too

I've had the overdraft for 7 years without a problem previously, and it's not as if it's problem for me to repay it.

my account is definitely NOT a cardcash account either.

m00m00

and as if by magic, got another letter today saying they are changing their mind, and I can keep my overdraft on the same terms for 12 months, and they will review things then

dannynixon

I have an overdraft with Halifax for 1,700 and its been like this for a good few years (albeit not always at this limit). For the last 6 months I have always been in the overdraft to the max and I have not received a letter. When did this happen?