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  • oakhouse13
    • #2
    • 22nd Oct 09, 11:22 AM
    • #2
    • 22nd Oct 09, 11:22 AM
    Isn't this entirely expected from banks offering introductory inducements like 100 to sign up that they then recoup far more from those gullible enough to take the hand out in the first place?
  • Former MSE Dan
    • #3
    • 22nd Oct 09, 11:28 AM
    • #3
    • 22nd Oct 09, 11:28 AM
    Not sure they are gullible - hopefully many will switch and now get another 100!
  • oakhouse13
    • #4
    • 22nd Oct 09, 12:51 PM
    • #4
    • 22nd Oct 09, 12:51 PM
    It doesn't work like that.
  • foogirl1983
    • #5
    • 22nd Oct 09, 1:15 PM
    • #5
    • 22nd Oct 09, 1:15 PM
    I was thinking about changing my account as have had nothing but annoyance from Halifax.

    Will definitely be doing it now!
  • katshi1986
    • #6
    • 22nd Oct 09, 1:27 PM
    Change to barclays
    • #6
    • 22nd Oct 09, 1:27 PM
    I have got my accounts with barclays and i have never had a problem with them, my Dad has been with Halifax for years and all he has had is grief with them, i say get out - especially now they're charging daily for use of the overdraft facility.
  • Lynie
    • #7
    • 22nd Oct 09, 8:27 PM
    Wait 'till you hear what happened to me!
    • #7
    • 22nd Oct 09, 8:27 PM
    I was called in to HBoS to 'review' my account.

    When I challenged the teller about the new charges she gave me the 'it's clearer for the customer' line.

    I said I thought it was unfair and she then told me, in her opinion, it was very fair.
    She said, I quote,

    'some people don't realise that an overdraft is not their money- it's the bank's money. Personally I never go into overdraft- I know exactly what's in my account and wouldn't dream of using money that wasn't mine.'

    She was sitting with my account details in front of her and would have seen that I use the overdraft facility on my account at the end of every month.
    I was so embarrased at the time- it was as if she was telling me off for using the facility.

    When I told her that I may then consider switching banks she said that HBoS are market leaders and all banks would follow suit.

    Well, I for one am willing to take the risk and leave them!
  • atomicsheep
    • #8
    • 22nd Oct 09, 9:16 PM
    • #8
    • 22nd Oct 09, 9:16 PM
    so the other banks will follow suit.

    All the other banks will need to merge or get bought out. THen get a bail out from the government then? and thats just to match the quality of the Halifax
    You can't beat an egg.........................NO WAIT!
  • Lorraine2008
    • #9
    • 22nd Oct 09, 9:22 PM
    • #9
    • 22nd Oct 09, 9:22 PM
    I have always had an account with the Halifax and have gotten grief. I am ditching and switching.
  • jacquelineh
    I went into my branch today and asked how can they justify these charges,they said it was to abolish the 35 charge for people going over their limit!
  • rb10
    A few points from the article...

    No more buffer zone. In the past, many customers had a buffer zone meaning if you went overdrawn by up to an agreed amount you didn't pay anything.
    No, this is incorrect. The Ultimate Reward account currently has an interest-free overdraft of up to 300. This will continue as a fee-free overdraft of up to 300. (Take a look at page 2 here for confirmation of this).

    The big winners are those who regularly go beyond their overdraft limit; most will often pay 100s less.

    The big losers are those who regular dip into their overdrafts, within their limits, by a small amount.
    What about those of us who don't use an overdraft at all?

    Hbos is now one of the better banks for those who go beyond their limit.
    ... or stay in credit for most/all of the month.

    There's huge political pressure on the banks like Hbos that are government backed to reduce charges for going beyond overdraft limits.
    There is huge pressure on all banks, whether Government backed or not, to reduce these charges. Much of this pressure comes from this site.
    • MSE Martin
    • By MSE Martin 23rd Oct 09, 9:50 AM
    • 8,115 Posts
    • 42,285 Thanks
    MSE Martin
    A few points from the article...



    No, this is incorrect. The Ultimate Reward account currently has an interest-free overdraft of up to 300. This will continue as a fee-free overdraft of up to 300. (Take a look at page 2 here for confirmation of this).



    What about those of us who don't use an overdraft at all?



    ... or stay in credit for most/all of the month.



    There is huge pressure on all banks, whether Government backed or not, to reduce these charges. Much of this pressure comes from this site.
    Originally posted by rb10

    All your points are technically correct, but do seem rather out of context to me?

    This is a guide specifically called "how to beat halifax's new overdraft charges" - it is not a generalised review it is targetted only about those overdraft charges and for those peopel who are overdrawn.

    I haven't gone into great detail about the rewards account which as we both know is a good deal for those in credit and offsets some of the overdraft cost. Yet I have certainly suggested that for those who earn enough they consdier it. Plus where I talk about ditching and switching it indeeds links to the best bank account article where Halifax's in credit scheme is listed.

    Yet of course many of those who are in credit are not with the rewards account, they are with the so-called higher interest account where the in-credit interest will drop to diddly squat. Though again as we've covered that in a past news article I didnt want to retread the ground.

    That's why I find your comments quite strange. I have tried carefully to balance the piece and resisted calls to say "its awful" as it isn't awful for everyone it all depends on circumstance.

    Yet I have always in my pieces and guides distringuished between those who are 'always' in credit and those who are 'occassionally, sometimes or always' overdrawn and this guide is very specific, and obviously for the latter?

    As for the ultimate reward account, I'll take a look, I was referring to the main halifax accounts, and as Im allergic to fee paying accounts like this tend not to consider them, but its an important note and I'll make a small change ta for pointing it out.

    Martin
    Last edited by MSE Martin; 23-10-2009 at 10:00 AM.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

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    • psychic teabag
    • By psychic teabag 23rd Oct 09, 10:36 AM
    • 2,771 Posts
    • 1,635 Thanks
    psychic teabag
    I haven't gone into great detail about the rewards account which as we both know is a good deal for those in credit and offsets some of the overdraft cost. Yet I have certainly suggested that for those who earn enough they consdier it.
    Originally posted by MSE Martin
    The articles on the main site always seem to talk about 'if your salary is X, you can use this account' but I think that's misleading. eg here, for the reward account
    With this product, as long as you pay in 1,000 a month, another way of saying you ensure a salary of 15,000 or over goes in, it'll give you 5 a month after basic savings tax.
    Paying in 1000 a month is not another way of saying you need a salary of 15,000. That salary is merely one way of achieving 1000 per month.But if you have savings of 1000 in an instant-access account, you can just move it in and out temporarily to get the bonus, for example. You can use standing orders to automate the process.
  • schweppes31
    Yes, I got one of these letters in the post and I'm shocked. Having talked to the bank it seems that they won't back down on this for me, so I will be leaving. I will be closing ALL my accounts there, and transferring the five figure sum from the savings account I have with them to a new account and moving a five figure sum from my online share dealing account to one somewhere else (that has lower dealing charges by the way).

    I've put up with higher charges on things like sharedealing for some time when compared to Hoodless Brennan although the Halifax seems to like me - they offered me 200 for a new dealing thing earlier this week for example.

    I find it obscene that the charges in no way relate to the amount of money one would be overdrawn by. Come to think of it, wasn't this one reason for the whole bank charges thing, that the charges in no way related to the amount one was overdrawn by and as a result they represented a penalty?

    Anyway, thank you Halifax for breaking the camel's back with this straw. I'll be leaving before your wonderful new charges. Just think of all the 25 dealing costs you're not going to be getting from me now on stock market transactions.
    • YorkshireBoy
    • By YorkshireBoy 23rd Oct 09, 5:11 PM
    • 30,616 Posts
    • 18,628 Thanks
    YorkshireBoy
    Yes, I got one of these letters in the post and I'm shocked. Having talked to the bank it seems that they won't back down on this for me, so I will be leaving. I will be closing ALL my accounts there, and transferring the five figure sum from the savings account I have with them to a new account and moving a five figure sum from my online share dealing account to one somewhere else (that has lower dealing charges by the way).
    Originally posted by schweppes31
    Sounds like they've done you a massive favour here. You're one of the lucky ones.

    1. They've made you find a better savings rate elsewhere.
    2. They've made you realise you can get cheaper dealing costs elsewhere.

    Everyone's a winner then. Always good to get a result.

    Just as an aside, it's good that you're moving on principle, and in support of others less fortunate than yourself, because anyone with 5 figure savings account balances will never incur overdraft charges...will they? They'd just make sure they had a float in the current account surely?
    ...the charges in no way related to the amount one was overdrawn by and as a result they represented a penalty?
    This is a charge for a service. You want to borrow money...any money...it'll cost you 1/2 a day. Crystal clear! Exactly what the OFT wanted.
    Just think of all the 25 dealing costs you're not going to be getting from me now on stock market transactions.
    Which will be offset many 10s/100s of thousands of times by the 1/2/5 fees that others will pay. You think they'll miss you?
    • apt
    • By apt 23rd Oct 09, 5:16 PM
    • 3,087 Posts
    • 1,750 Thanks
    apt
    Surely you are cutting off your nose to spite your face there Schweppes. If you have a five figure sum in an accessible savings account why not stick a few hundred of this into a Halifax Reward Account as a float to make sure you do not go overdrawn? That way Halifax will be paying you 60 tax free per year, and you will be paying them nothing. To get 60 after tax elsewhere you would need to put around 2,000 into an account.
  • opinions4u
    Yes, I got one of these letters in the post and I'm shocked. Having talked to the bank it seems that they won't back down on this for me
    Originally posted by schweppes31
    Did you really expect them to say "yes, we'll run an account with a specific set of terms and conditions just for you"?

    so I will be leaving.
    As is your choice.

    I will be closing ALL my accounts there, and transferring the five figure sum from the savings account I have with them to a new account and moving a five figure sum from my online share dealing account to one somewhere else (that has lower dealing charges by the way).
    So you have over 10k in savings and you are worrying about overdraft charges. Ok. Your choice how you manage your money I suppose.

    I have genuine sympathy with people stuck within an overdraft who are going to pay more and struggle more to bring the debt down. I don't really have the slightest idea why you are going to lose out.

    I find it obscene that the charges in no way relate to the amount of money one would be overdrawn by. Come to think of it, wasn't this one reason for the whole bank charges thing, that the charges in no way related to the amount one was overdrawn by and as a result they represented a penalty?
    Precisely. These charges are clearly positioned as cost of a service and not as a penalty. Why else do you think they have made a change?

    Anyway, thank you Halifax for breaking the camel's back with this straw. I'll be leaving before your wonderful new charges. Just think of all the 25 dealing costs you're not going to be getting from me now on stock market transactions.
    Blimey, I only pay 11.95!

    Are you a troll?
    Last edited by opinions4u; 23-10-2009 at 8:31 PM.
    • noh
    • By noh 23rd Oct 09, 8:16 PM
    • 5,315 Posts
    • 3,609 Thanks
    noh
    Yes, I got one of these letters in the post and I'm shocked. Having talked to the bank it seems that they won't back down on this for me, so I will be leaving. I will be closing ALL my accounts there, and transferring the five figure sum from the savings account I have with them to a new account and moving a five figure sum from my online share dealing account to one somewhere else (that has lower dealing charges by the way).

    I've put up with higher charges on things like sharedealing for some time when compared to Hoodless Brennan although the Halifax seems to like me - they offered me 200 for a new dealing thing earlier this week for example.

    I find it obscene that the charges in no way relate to the amount of money one would be overdrawn by. Come to think of it, wasn't this one reason for the whole bank charges thing, that the charges in no way related to the amount one was overdrawn by and as a result they represented a penalty?

    Anyway, thank you Halifax for breaking the camel's back with this straw. I'll be leaving before your wonderful new charges. Just think of all the 25 dealing costs you're not going to be getting from me now on stock market transactions.
    Originally posted by schweppes31
    Don't understand your post.
    Halifax sharedealing charge 11.95 for online deals.
    http://www.halifax.co.uk/sharedealing/charges/share_dealing_charges.asp

    Hoodless Brennan as far as I am aware no longer offer execution only accounts.
    They redirect you to TD Waterhouse

    http://trading.tdwaterhouse.co.uk/hoodlessbrennan_accountopening/

    To transfer your holdings from Halifax sharedealing will cost 15 per holding

    http://www.halifax.co.uk/sharedealing/charges/administration_charges.asp

    so where are you moving to and what do you gain by moving?
    Last edited by noh; 23-10-2009 at 9:45 PM. Reason: spelling
    • bristolleedsfan
    • By bristolleedsfan 24th Oct 09, 3:15 AM
    • 7,685 Posts
    • 9,746 Thanks
    bristolleedsfan

    'some people don't realise that an overdraft is not their money- it's the bank's money. Personally I never go into overdraft- I know exactly what's in my account and wouldn't dream of using money that wasn't mine.'
    Originally posted by Lynie

    A lot of us would share that sentiment, personally I believe that the new charging structure is fair because I never go overdrawn.

    Halifax are allowing a 5 day authorised overdraft free fee period each month ( up to 2500) by virtue of it paying 5.00 a month to those who credit their accounts with 1000.00 each month. It does not have to be 1000.00 credited in 1 go, it can be recycled money, i.e the same money that goes in can come back out and go back in again. Many of us have 3 accounts and use the same money to gain 15.00 a month credit, that 15.00 a month credit can pay for 15 days authorised overdraft free fee period each month ( up to 2500) for those that do need to use the banks money. ( Someone elses money lent on a business basis.)

    Please note I am not having a dig merely adding some balance and a different point of view, If you/anyone else want to use an overdraft facility then that is a matter for your/themselves. Im merely agreeing that it is the banks money, the easiest way to avoid charges is not to use banks money, and that halifax do offer fee free authorised overdraft days each month to those who credit their account(s) with 1000.00 during that month.
    Last edited by bristolleedsfan; 24-10-2009 at 3:23 AM.
  • tradetime
    'some people don't realise that an overdraft is not their money- it's the bank's money.
    Normally I'd actually have a somewhat sympathetic ear to that point of view but given the amount of Taxpayer money pumped into the Halifax / Lloyds Bank I'd probably have been tempted to tell the condescending young lady she should consider herself lucky to still have a job.
    http://www.marketoracle.co.uk/Article14432.html

    To steal a line from investor Jim Rogers "When nobody can fail, everybody fails."
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
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