New Halifax Overdraft Charges
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The Food Standards Agency?wizzywig27 wrote: »Ok, so here is my update - its laughable really how this bank are treating their customers, if this was my younger self and had the rest of my life ahead of me id run for the hills with their money - not that I am condoning this to anyone - of course that is just my opinion.
I may (or may not) have mentioned in previous posts I had complained to the CEO of Halifax. Well as part of the respone from the Chief Exec's office was that they may be able to offer me a loan, or barring that a rate of 1p for every £14 borrowed (half price) until February. He basically told me there was nothing else they can do, and wait until November to call them back.
I wasnt happy woth this response so I went to the FOS - I also reported the bank and their practices to the FSA.
Well played.Now before I go on, it is worth mentioning that I reduced my overdraft by £1520 to £480 - my aim is to clear this by January.
The FOS are between a rock and a hard place. It's not their job to rule on a bank's overall charging policy.I have to say the FOS has been nothing short of a joke from the beginning. Lack of updates, no support (he actually said I was putting up barriers by not agreeing to the Debt Management Plan (similar to the above where the suggested sending to collections to arrange an Arrangment to Pay), he besically said the bank have made no errors and he cannot do anything. I explained they are sending me into financial hardship, are you not able to take that into consideation, he said no (surprises me that). I mentioned to him that I have it in writing that they can offer me 1p for every £14 but now the bank are saying they are unable to even offer me that - he states the wording of the letter is confusing but he is likley to side with them (it states - and I am recalling this from memory as I dont have it on me - that 'We may be able to offer you a loan if eligible; barring that we are able to offer 1p for every £14 borrowed') He claims that as it is a part of the same sentence then he also means they 'may' for the 1p for every £14 as well - I said I didnt agree.
I have chased the FOS this morning and got this reply:
Thank you for your email. I am currently awaiting Halifax’s response as I have approached it asking if it would be willing to offer you the reduced rate on your overdraft until February 2018 considering you have recently reduced the amount of your outstanding balance. I will keep you updated further upon receiving its response.
Now, I thought the Obudsman was impartial, and didnt take it's own views into view when making a decision, surely him determining what was meant in the letter is just that? I am also confused as to why he is 'asking' them rather then 'requesting' or 'telling them' to honour the agreement I have in writing.
Its a farce. I cannot wait to ditch this bank.
Have you had statutory two month's notice of the change?
Does the letter around halving the charges actually promise you this, or does it say something along the lines of "may be available "?0 -
Where there is ambiguity then an ombudsman inevitably has to make a judgement call, based on his interpretation and opinion of what's in front of him - that doesn't prevent him from doing so impartially....wizzywig27 wrote: »Now, I thought the Obudsman was impartial, and didnt take it's own views into view when making a decision, surely him determining what was meant in the letter is just that?
The ombudsman is essentially taking a view as to whether the bank is acting fairly in accordance with its Ts & Cs, and can't really be expected to overrule those Ts & Cs. Not sure how visible your repayments are to FOS but if you've repaid over £1K from your overdraft within a fairly short period of time and are on track to pay off the residual £480 within the next two months, then claiming that (initial) charges of less than 70p a day put you in financial hardship lacks credibility....wizzywig27 wrote: »I explained they are sending me into financial hardship, are you not able to take that into consideation, he said no (surprises me that)0 -
Ok, I got my official response from the FOS today for anyone who is interested, basically because I have reduced my overdraft, even though I still have more going out that coming in, they are unable to offer me reduced rate offered previously of 1p for every £14.
So yet again HBOS word means as much as it did previously. Keeping in mind the letter was sent from the Executive Team.
I hope this bank ends up like the Northern Rock and the fat cats who have shafted their 2 million customers choke on their sour milk.
Having banked with them for almost 10 years, as soon as I get my £250 switching incentive from B I will pay off the remainder and finally be rid of their disgusting business practices and pathetic customer service. This bank alone has caused me more worry and anxiety than I deserve, and even now when they can help me to effectively pay off my balance quicker they are still happy to shaft me. If they are going to shaft me at least do me the courtesy of using some lube!0 -
Where there is ambiguity then an ombudsman inevitably has to make a judgement call, based on his interpretation and opinion of what's in front of him - that doesn't prevent him from doing so impartially....
The ombudsman is essentially taking a view as to whether the bank is acting fairly in accordance with its Ts & Cs, and can't really be expected to overrule those Ts & Cs. Not sure how visible your repayments are to FOS but if you've repaid over £1K from your overdraft within a fairly short period of time and are on track to pay off the residual £480 within the next two months, then claiming that (initial) charges of less than 70p a day put you in financial hardship lacks credibility....
Without any idea where that 1K came from? If they asked they would know it came from a loan, which I still have to pay back. But I suppose they don’t really care as long as I’ve paid them
Edit: in fact they don’t need to ask, they can see the direct debit coming from my account0 -
Why would they care? They're a bank not a charity and if you've found a way to repay the money you borrowed from them then they're not going to ask too many questions about how you did so - my supposition from your previous post is that they would have honoured their reduced rate offer if you hadn't independently found a way of relieving your financial pressures, but by doing so you may have effectively negated their need to offer assistance....wizzywig27 wrote: »Without any idea where that 1K came from? If they asked they would know it came from a loan, which I still have to pay back. But I suppose they don’t really care as long as I’ve paid them
It's good that you'll be in a position to vote with your feet and move elsewhere (assuming you've already qualified for the now-withdrawn B offer) but do you honestly believe that B (or others) would do anything differently if/when they increase charges, reduce benefits, etc?wizzywig27 wrote: »Having banked with them for almost 10 years, as soon as I get my £250 switching incentive from B I will pay off the remainder and finally be rid of their disgusting business practices and pathetic customer service. This bank alone has caused me more worry and anxiety than I deserve, and even now when they can help me to effectively pay off my balance quicker they are still happy to shaft me. If they are going to shaft me at least do me the courtesy of using some lube!0 -
It did in 2008.I hope this bank ends up like the Northern Rock0 -
Why would they care? They're a bank not a charity and if you've found a way to repay the money you borrowed from them then they're not going to ask too many questions about how you did so - my supposition from your previous post is that they would have honoured their reduced rate offer if you hadn't independently found a way of relieving your financial pressures, but by doing so you may have effectively negated their need to offer assistance....
It's good that you'll be in a position to vote with your feet and move elsewhere (assuming you've already qualified for the now-withdrawn B offer) but do you honestly believe that B (or others) would do anything differently if/when they increase charges, reduce benefits, etc?
Yes, I qualify for the B bank account switch, so that money should be due to January.
Do I think others would do it, yes, I honestly do (with regard to changing their T's & C's etc). Would they treat their customers any different if/when it happens? Who knows, time will tell I guess. One difference is I will not put myself in the same situation.
Reagrding the 'offer' - I agree, but does that make it right? I am struggling, and maybe I did what I did because they were 'playing ball' - now they have decided I am financially better off (even though I am not) they dont care about any offers. Around the time it was announced they told everyone to call, they did then that team were telling everyone to call back in November. They way they have handled this has been nothing short of disasterous. It could have been handled a whole lot better!0 -
I really didn't anticipate having to carry on paying for the old overdraft fee of £25 which is paid in arrears along with the new daily fees. This has caught me out and do't recall reading this in the literature.
All that said, I am responsible for managing my overdraft and have worked hard to reduce the fees in the last 2 months. The goal is to reduce and eradicate the overdraft once and for all, so on this basis I am pleased this change has happened as it has given me the kick in the butt I needed.0 -
Congratulations on taking such a sensible attitude to your finances and how to deal with a setback, such a refreshing change from those whose immediate reaction is to challenge, dispute, complain and generally refuse to accept responsibility!I really didn't anticipate having to carry on paying for the old overdraft fee of £25 which is paid in arrears along with the new daily fees. This has caught me out and do't recall reading this in the literature.
All that said, I am responsible for managing my overdraft and have worked hard to reduce the fees in the last 2 months. The goal is to reduce and eradicate the overdraft once and for all, so on this basis I am pleased this change has happened as it has given me the kick in the butt I needed.
And the old fees only apply this month (in arrears for charges incurred during October), after that it's just the new ones.0 -
Just checked my online banking and on both accounts have been charged the daily fee for the last month and today charged the £30 arranged overdraft fee on both......I thought the daily fee replaced this?? I have nearly had a heartattack when I saw this! I have tried so hard all month too keep both overdrafts to a minimum and was expecting to be slightly better off (both overdrafts under £700) I could actually cry right now! Is this a charge in arrears?? so just a one off? if so I can just about live with that.....I read all the letters etc and don't recall saying that we would still be charged this?? I budget very hard and keep a very close track on my cash flow (almost out of massive debt!) and it's only £60 but it's completely knocked my cashflow as I have some car bills to pay this month not to mention Christmas! Hoping somebody can give me some reassurance? Tried ringing Halifax but its a 35 min wait to get through!! wondering if everybody in the same boat??0
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