HBOS getting ready to roll out reward charges across all accounts ?

[Amethyst]

In December 2008 HBOS announced a new charging structure. However this was only for new customers who signed up for a Reward Account leaving their long term customers on the £28 monthly overdraft fee and the £35 unauthorised overdraft transaction fee charging structure.

It now appears in the wake of RBS's announcement yesterday, that they are finally ready to roll this out across long standing customers current accounts and are informing staff of the new structures in advance.

The new charging structure will abolish the current interest charges for people in the red.

Also disappearing will be the existing overdraft fee of £28 per month, and the maximum three charges a day of £35 each for paying or bouncing cheques, or making other payments, while in the red without permission.

Instead, customers with an arranged overdraft of between £301 up to £2,500 will pay £1 per day; those with a higher arranged overdraft will be charged £2 per day; and anyone with an unarranged overdraft will have to pay £5 per day.

The changes are rumoured to be being introduced for all current account holders in October. Although there have been reports of the change waiting until December.

HBOS have stated that they 'don't have an exact date however it will be sometime this year. When ever it is, why on earth has it taken so long for them to pass these savings on to long standing customers?

[Amethyst]

Re: HBOS getting ready to roll out reward charges across all accounts ?

The Telegraph has now reported this may be introduced on December 6th. Will try check with HBOS on Monday.

[natweststaffmember]

Re: HBOS getting ready to roll out reward charges across all accounts ?

December 6th does match one of the dates that has been stated on MSE by one poster who indicated the member of staff may have let the cat out of the bag.

[Amethyst]

Re: HBOS getting ready to roll out reward charges across all accounts ?

Its not a very big cat is it. The new charges aren't much better than the old ones IMO and they are already applied to 500,000 customers accounts since February 2008. This is just rolling the same across other accounts.

[natweststaffmember]

Re: HBOS getting ready to roll out reward charges across all accounts ?

We have confirmation as far as I am concerned that the charges ARE happening from 6th December 2009.

"They are only changing the charging structure on the current accounts (with the exception of the Student Current Account). Below gives more detail on the effects of existing and historical accounts:-

Ultimate Reward Current Account will adopt the new fee structure, with the exception of the first £300 of an arranged overdraft remaining fee free. The U.R.C.A. will also benefit from the £5 if funded with £1000 in a calendar month. It will still cost £12.50 (potentially £7.50 with £5 Reward deducted).

Reward Current Account will remain exactly the same. However, I'd imagine the £1000 minimum funding will become mandatory, otherwise the account will be downgraded to the relaunched Current Account.

Relaunched Current Account will adopt the new charging structure. It will not carry the £5 Reward, and will operate as a standard free current account paying no credit interest.

High Interest Current Account will be re-designated to the relaunched Current Account. In my opinion a rather silly move seeing the H.I.C.A. has (or used to have) a £1000 minimum monthly funding to gain a higher rate of interest. So I fail to see (other than the obvious savings) why HBOS did not simply re-designate these customer's to the Reward Current Account.

Student Current Account will retain the existing charging structure.*

Easycash will retain the existing charging structure.**

Cardcash will retain the existing charging structure.***

Finally I would just like to clarify the Reward Current Account and future charging structure for all HBOS current accounts (except the Student Current Account). These are the main points:-

1) The Accounts will no longer pay credit interest, or charge debit interest for the use of an arranged or un-arranged overdraft.

2) If you fund £1000 or more to the U.R.C.A. (from 06/12/09) or Reward you will receive a £5 net payment the following statement month.

3) Any arranged overdraft up to £2500 will cost £1 per day to use.

4) Any arranged overdraft above £2500 will cost £2 per day to use.

5) Any unarranged overdraft will cost £5 per day to use.

6) There will no longer be a charge (under the new structure) for Unpaid Items.****

7) You have until close of business to clear any arranged or unarranged overdraft to avoid paying the daily fee. However a cut-off time has not be clarified but I would imagine 17:00 or perhaps 00:00 (seeing as fees are calculated on the last day of the calendar month before the said month's statement is generated).

8) These changes will take effect on the 6th of December 2009.


* Paid and Unpaid Item Fee: £20 (no more than once per day); Unarranged Overdraft Fee: £28 (up to once per month).
** Unpaid Item Fee: £15 (up to three per day) - over 18's only.
*** The Halifax Website states that fees to this type of account "does not apply". However I would imagine that both Cardcash and Easycard (although designed not to go overdrawn) are still subject to the £35 Paid Item Fee and £28 Unarranged Overdraft Fee. Perhaps a member of staff can clarify this?
**** This is currently the case for the existing Reward Current Account, and will be applied to the U.R.C.A and relaunched Current Account from 06/12/09.

Disclaimer: some of this information is speculative, and although I'd imagine it will come to fruition we will need to wait until we receive mailing from HBOS to confirm. Therefore this should not be regarded as Gospel truth (as with any post on MSE) until it comes from the horse's mouth i.e. Halifax Bank of Scotland."

Source: MoneySavingExpert.com Forums - View Single Post - MSE News: Halifax and Bank of Scotland to slash bank charges
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Good to see that the most hard up customers are being hit the hardest.
Halifax does give you extra now.........an extra incentive to leave them!!!!

[Amethyst]

Re: HBOS getting ready to roll out reward charges across all accounts ?

by god could they make it any more complicated (or expensive)

Hopefully when Hbos get around to announces the actual changes they will make it a little bit clearer.

[natweststaffmember]

Re: HBOS getting ready to roll out reward charges across all accounts ?

The thing is that the press keep going on about this being the end game in the OFT bank charges saga yet they are forgetting that we are in a recession and most of the way the charges are made are in language similar to the way businesses get charged. Would you like to know what they are getting from this?
That's right absolutely NOTHING from one bank that has a 70% stake from the government and another one who has a 40+% stake in them. In fact, we talk about the debt in this country and yet if their charges were reduced they might be able to help the economy by the saving they make to hire somebody who pays tax(increasing revenue for the Treasury), takes one person off the unemployed list(decreasing benefits payments) and perhaps will mean that they will spend money within the economy and therefore helping other businesses.
Unfortunately, businesses are not part of the OFT test case so there is no real pressure to do anything but shaft them.

[Amethyst]

Re: HBOS getting ready to roll out reward charges across all accounts ?

what who are getting from this?

[natweststaffmember]

Re: HBOS getting ready to roll out reward charges across all accounts ?

Don't understand the question

[Amethyst]

Re: HBOS getting ready to roll out reward charges across all accounts ?

In relation to

Would you like to know what they are getting from this?
That's right absolutely NOTHING

Reads as if you mean the press, but could be the government, hbos or the OFT too... sorry its a bit early on a sunday.

[natweststaffmember]

Re: HBOS getting ready to roll out reward charges across all accounts ?

Business account holders

[Amethyst]

Re: HBOS getting ready to roll out reward charges across all accounts ?

ahhhhhhhhhhh lol. missed that one.

yes it is scandalous.

[pinknico]

Re: HBOS getting ready to roll out reward charges across all accounts ?

Sorry its probably in there somewhere but where you have ****no charge for unpaid items. whats the charge for paid? Is that the unarranged £5 a day?

[natweststaffmember]

Re: HBOS getting ready to roll out reward charges across all accounts ?

"These charges are starting from 6th December, and the existing High Interest account, and basic current account will all be changed to the Reward account and will be subject to the daily overdraft fees.

This is great news if you never use your overdraft and credit £1000 a month, you will get £5 for this.

Good news if you regualry exceed your overdraft limit. At the minute you could be charged 3 charges of £35 each day for every unpaid/paid transaction, and a monthly £28 unauthorised overdraft fee. With these changes it would be £5 a day every day you are over limit.

Not so great if you use your overdraft a few times a month or dont pay £1000 in each month, these changes may cost you a few quid each month, but worth checking how much debit interest you pay at the end of each month now, it maybe a few quid anyway.

Bad news if you live in your overdraft. It will be very possible for you to be charged £31 a month for remaining within your overdraft.

Another option, the Ulitmate reward account offers £300 fee free overdraft for a £12.50 fee. Worth considering if you use only a small overdraft.

Cardcash is disappearing for over 18's and this has been getting gradually phased out. Existing cardcash customers are being automatically upgraded to the Reward account or downgraded to Easycash depending on individual circumstances, (prob best to try and upgrade now rather than waiting.)

Both cardcash and easycash accounts are likely to keep the existing bank charging structure. "

Further info comes out. Don't you just love bank workers who do not realise that it is a breach of their contracts saying this sort of stuff online. Good info though when they do say things.

[natweststaffmember]

Re: HBOS getting ready to roll out reward charges across all accounts ?

"According to the T&Cs, they will charge an Unpaid Item Fee of £15 if they do not make a payment. If the account goes overdrawn, there is no mention of a charge, but there is debit interest at 29.8%EAR"

We have the unpaid Item Fee now....