New Halifax Overdraft Charges

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  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    Dobbibill wrote: »
    Halifax have put an overdraft calculator on their website for you to see what the charges may be.

    I can understand why they want people to ring back in October, although somewhat frustrating - as already said, life happens and things could get worse, or better.

    http://www.halifax.co.uk/bankaccounts/overdraft-assessment/fee-calculator.asp

    You are indeed correct, life does happen, and for me it means things get worse. Happy for these people who benefit from these changes but Robin Hood comes to mind, although in Halifax's version they rob from the poor to give to the less poor!

    For me this literally has the potential to send me into a debt spiral, so whilst there are people saving between 1p and 99p a day I could potentially be charged up to £2 more a day.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    wizzywig27 wrote: »
    You are indeed correct, life does happen, and for me it means things get worse. Happy for these people who benefit from these changes but Robin Hood comes to mind, although in Halifax's version they rob from the poor to give to the less poor!

    For me this literally has the potential to send me into a debt spiral, so whilst there are people saving between 1p and 99p a day I could potentially be charged up to £2 more a day.

    They will be contacting customers where the charges will mean more debt than now - it may be that they will offer you a loan to clear the overdraft.
    What you have to ensure before October is that your income balances your expenditure or in 12 months you will be back to square one.
  • jimarnold_2
    jimarnold_2 Posts: 35 Forumite
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    edited 12 August 2017 at 10:58PM
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    As Lloyd's and Halifax operate under separate banking licenses its remarkable that both have come up with this 1p per £7 overdraft scheme :-)

    I know that they've only responded to government pressure to do something about high charges for unauthorised overdrafts but they've taken the opportunity to make even more money

    Customers with large overdrafts are good customers ie they make lots of money for the banks
    People like me who keep £5k in their Lloyd's current account (getting my 3% interest) cost them
    So if competition works then I assume at least one of the big banks will offer 1p per £8 or better and should get lots of switches ?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    jimarnold wrote: »
    Customers with large overdrafts are good customers ie they make lots of money for the banks
    ...right up to the point a life event (other than an overdraft fee overhaul) means they default and thus become bad customers!
    People like me who keep £5k in their Lloyd's current account (getting my 3% interest) cost them
    How come you're getting 3% when the rest of us are only getting 2%? That's not fair! ;)
  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    jonesMUFCforever wrote: »
    What you have to ensure before October is that your income balances your expenditure or in 12 months you will be back to square one.

    Can you explain what you mean please?
  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    jonesMUFCforever wrote: »
    They will be contacting customers where the charges will mean more debt than now - it may be that they will offer you a loan to clear the overdraft.

    Also, do you know what the criteria is for a loan? I am not eligible according to online banking so does that mean they won't offer me a loan? Or is there a chance they can override this and offer me one anyway? The loan option is my preferred one.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    wizzywig27 wrote: »
    Also, do you know what the criteria is for a loan? I am not eligible according to online banking so does that mean they won't offer me a loan? Or is there a chance they can override this and offer me one anyway? The loan option is my preferred one.

    All banks have to treat their customers fairly - if the proposed charges regime makes it difficult for you then what is the alternative?
    You might get x months interest free or a loan to cover the overdraft.

    How much is the overdraft now and how much are you paying now in interest and charges?
  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    jonesMUFCforever wrote: »
    All banks have to treat their customers fairly - if the proposed charges regime makes it difficult for you then what is the alternative?
    You might get x months interest free or a loan to cover the overdraft.

    How much is the overdraft now and how much are you paying now in interest and charges?

    My overdraft is £2000, currently paying about £29 in charges and £15 account fee, although just downgraded from URCA so would only pay £29.

    Can't see them offering me a loan and interest free for xx months won't be much help either in my circumstances.
  • SnowTiger
    SnowTiger Posts: 4,461 Forumite
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    wizzywig27 wrote: »
    My overdraft is £2000, currently paying about £29 in charges and £15 account fee, although just downgraded from URCA so would only pay £29.

    Can't see them offering me a loan and interest free for xx months won't be much help either in my circumstances.

    Has your overdraft been reducing over time?

    Or does it always end up at about £2,000 just before payday?

    If it hasn't been reducing, throwing £44 (£29 + the £15 now available) a month at it will get it down to £0 in a little under four years if no interest or fees were added.

    Even without taking in to consideration unforeseen events cropping from time to time, I think it's difficult to see what realistic repayment package Halifax could offer you.
  • wizzywig27
    wizzywig27 Posts: 1,536 Forumite
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    SnowTiger wrote: »
    Has your overdraft been reducing over time?

    Or does it always end up at about £2,000 just before payday?

    If it hasn't been reducing, throwing £44 (£29 + the £15 now available) a month at it will get it down to £0 in a little under four years if no interest or fees were added.

    Even without taking in to consideration unforeseen events cropping from time to time, I think it's difficult to see what realistic repayment package Halifax could offer you.

    I kind of agree, thats why I would prefer the loan option. However had they not changed their structure I wouldn't be in this position, although I agree it's not a great way of managing money.

    If they expect me to pay £90 a month in fees why not let me pay that towards a loan, at least that way I'm reducing the balance
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