Halifax Closing Overdraft Accounts

Scousebird_2

I'm hearing more and more about this and it's not very nice-I wonder if Halifax are panicing and are tightening their belts given the credit crunch. We'll see what happenes over the bank charges but I don't feel that it's fair for them to revoke the overdrafts and expect payment in such high instalments when most people live in their overdraft due to financial strain anyway. Those who need the facility least use it for big, indulgent things than those who struggle and live in it. Very mean!!

RayWolfe

I'm afraid that your comment shows that you don't understand what overdrafts are for. They are for short term emergency funding. If they are used for day-to-day living they are being misused.
If you need some funding for a special event, a loan is the answer. If you are constantly in debt, then you need to look at your spending. I know this is not always easy but it is the ONLY way.
If this sounds tough, then I can only say sorry but it does not alter the basic facts and the sooner those facts are addressed the sooner people can give up their overdraft and worry less.

Oh, and before anyone calls me sanctimonious, I have been in debt, and I know how I got out of it.

Scousebird_2

Oh I assure you I do-I echo what you are saying in another post

http://forums.moneysavingexpert.com/showthread.html?t=871917&page=2

My point here was THE WAY Halifax have chosen to do what they have done with their customers. They are targetting custs who are already deeply into the facility without offering them alternative financial solutions-such as unsecured lending/personal loans or setting realistic repayments schedules-of which any responsible lender would do via a credit solutions department-but all they are doing is simply demanding repayment in full without giving the customer reasonable prior notification (time wise) to repay the outstanding debt.

So what do I mean by realistic solutions??

They should be inviting the customer into branch or to a dedicated team on the phone who can review the customers income and expenditure and then setting a realistic and affordable rate to pay back to clear the overdraft-just like they are bound to do under FSA regulations (in line with treating the customers fairly and being resonsible lenders, of which they do when they LEND the money). But in the cases I have been reading-this does not seem evident and is causing many of their customers emotional distress.

My previous post was merely highlighting the methods used by Halifax to recoup the debt, with what seems little consideration for the customer financial stance-and seems a little harsh. But honestly...I fully understand the system and it's suitablily, features and reasons/suggested length of usage. I just don't agree with Halifax's customer care here.

I am not suggesting that people should use their overdraft permenently, in fact you will see from the link above that I am more discouraging that, I just think that Halifax should help their customers a little more-I used to rememeber their slogan on the adverts...

'Who gives you extra'....well 'EXTRA HELP' would be a good start to these customers don't you think?

It's constructive suggestions I am making here in my view.

RayWolfe

... and you make some very valid points.
I just think people should be more frightened of the perils of living in an overdraft and make sure that they understand that An Overdraft IS for Christmas and not for life. (To blatantly steal animal charities pleas about puppies.)

Scousebird_2

Glad that someone agrees! It's so easy to live in an overdrafts and some banks need to think harder I feel.

PROLIANT

Scallyfax have struck again, I left this wannbe bank come building society because of poor service and attitude, are you constantly overdrawn?
You could apply for a credit card that allows bank transfers like Egg or MBNA then just pay off your O/D with a 0% card.

anniemf2508

they did this to me about 18 months ago,i agreed to pay it off over 3 months, i defaulted slightly on this and they closed my account.....i was gonna leave anyway after it was paid off.

RayWolfe

PROLIANT wrote: »

You could apply for a credit card that allows bank transfers like Egg or MBNA then just pay off your O/D with a 0% card.

At a further cost of 2 or 3% .... and then the interest of 17% when it's not paid back.
You make it sound easy, but it ain't.
The only way to solve this is to address the cause not the effect.

JohnsinDebt

[FONT=&quot]On Saturday the 26th July I received a letter dated the 24th[/FONT][FONT=&quot], that the [/FONT][FONT=&quot]Halifax[/FONT][FONT=&quot] have received correspondence from the ombudsman & were looking into the matter of charging my £70 for 2 cheque`s that never took me over my limit.
Also on Saturday the 26th July I received another letter from the Halifax dated one day later on the 25th stating that following recent assessment of my overall relationship with the Halifax a decision has been taken to withdraw my overdraft facility on my current account in accordance with condition 27.3 of the terms & conditions.
So it looks like you only have to complain & they will get rid of you. The worst part of the letter says the overdraft will be removed WITHIN two weeks, surly they should allow the customer time to make arrangements & have a set procedure / timescale ?
I rang the Halifax & they were absolutely no help at all.
[/FONT]

JohnsinDebt

Just to say I went into the Halifax was taken upstairs, the girl dealing with my account could not find anything on her PC as reguards my overdraft being taken away. She then had to ring the number on the bottom of my letter to actually speak to someone. That someone agreed with me that I could pay my Overdraft off at a sum of £20 per month & because I`m on a low income (benefits) all intrest would be stopped on the account & the account to be made un-useable. When I got home, I checked my account on the net & found a letter had been sent, same day (2nd Aug) stateing that as I do not have a arranged overdraft & I have gone overdrawn, I will be charged a monthly Unautherised Overdraft Charge of £28, so whats the point of me paying £20 if all thats going to happen is my debt gets higher !!!

I know its not only the Halifax ripping the public off, however its made it plain to me that people on the other end of the line at the Halifax are trained in one thing only & thats lieing to there customers.
They will stop at NOTHING to Destroy any Family with there GREED for money no matter what your familys situation, its a case of dont feed yourself or your kids PAY US all you have. Be WarneD .......