New Halifax Overdraft Charges

I think these new charges are a good thing, people who accidentally go a little over will be less stung, and if Halifax make more profit their reward account is safer and they will return more to shareholders

If someone is over £700 overdrawn and is not able to switch, it's high time they get it under control

Firstly have you updated your address with Halifax?(due to issues posted elsewhere about not getting statements or letters) if so have you received the letter notifying of the changes? Many customers are and have accepted offers with the letters which gives you a period of time to repay the overdraft at a higher rate calculation. This would mean the charges wouldn't triple straight away and within the offer period you will be reducing the overdraft amount so the fee calculations will be on a lower figure when the offer expires.

wizzywig27 wrote: »

What Halifax are doing is unfair and shows a total lack of understanding of their customers needs and it worries me that banks are happy to send customers into debt.

Banks are not happy to send customers into debt customers have done this themselves by using the [banks] money, and therefore the banks are clawing back some of the risk they have with customers whom have high interest/value overdrafts whom are not repaying them or with a low repayment rate and they could end up in further problems.

The changes have been implemented so it forces customers/encourages those customers to repay the overdrafts that they probably wouldn't have done without the changes.

Debt has been created by the customer and not the banks, that said the charges will be higher then before and could/will push customers further into the overdraft but they will no longer be the £5 unauthorised fees for using an overdraft (which to be fair can and have cost over £100 for a small mistake/overdraft usage.)

I suggest as others have done to look for solutions to enable you to repay the overdraft off slowly, quicker then you have done, or find a loan/credit card that will cover or replace some of the amount, with a lower monthly repayment then the £90 odd you mention.

I think customers will get offers to help bridge the gap in the changes, to ease them in, which will help work out some breathing space, for the extra cost of fees being applied. Its also going to be easier to work out the charges as they come out each day rather then 30 days after the month has finished, which it does now.

Customers then forget about the fees and then they are pushed into an unauthorised overdraft/Exceed limit and are charge more money in fees. This I feel is incorrect as the bank is charging on charges, which just spirals.

Why the group has had to make this change due to regulations around unauthorised fees and excessive spirals for customers.

Its not what you want to hear, but it will be happening, you have had notice to make headway in what you want to do. There will be a team responsible for money management and those in financial difficulties but I believe the solution to this is to reduce the fees but the account can not be used, and this may not be an solution for some.

There is help out there from the banks, and some research done by customers, a middle ground will be met.

This issue has been caused due to customers spending banks money and then finding they cant afford to do so, when its recalled or changed.

You mention above about applying for loans/overdrafts on your other bank accounts, have you taken into consideration your credit cards held with HSBC, as this will add up, you have only just paid back Santander arrears, has this cleared and been updated on your credit report yet? This could be a reason why you are being declined.

Just a thought of course,

Westie983