Halifax Overdraft Charges from 6th Dec

[jayzee1444]

Hi are Halifax discriminating against people they perceive in financial hardship.
When i didn't use my cc they were contacting me all the time with special 0% promotions
Recently I have been using it and made a few cash withdrawals - one to pay a loan - a temporary situation and all of a sudden I got a letter to say my rate was changing to 26.5%. I transferred the debt to MBNA rather than give Halifax another penny and when i threatened to transfer they said they would stop the rate change but I was so disgusted I transferred anyway, I have always made payments on time.

Now they have sent a letter saying they will be charging £1 per day on all overdrafts under £2500 and £2 per day over that amount, £5 per day on unauthorised od from 6th Dec.

I have an overdraft for £550 I can pay it off I think but its the principle I wasn't foreseeing this, I don't think I fit hardship definition except for cc cash withdrawals..
If you can put £1000 pm into the bank they will give you a fee free overdraft
but again I think this is discriminating against poor people who aren't in a position to do this.

Any advice

[Amethyst]

Re: Halifax Overdraft Charges from 6th Dec

Hiya xx

I think the £1000 pcm in to the account is to earn the £5 and get the £300 'free' overdraft (ie only interest charged on it) but to have that account costs you £12.50 a month. So that automatically excludes low incomes and hardship customers. I dont think you get the £300 overdraft just by having over £1000 into the account each month.

Do you still use the HbOs account or is it just sitting there in overdraft ? Yes I think £30 a month is too much to have an authroised overdraft if you live in it. So I think paying it off is a good idea and/or moving your account elsewhere. (RBS seems a good option charges wise).

Ame
xx

[jayzee1444]

Re: Halifax Overdraft Charges from 6th Dec

Hiya xx

I think the £1000 pcm in to the account is to earn the £5 and get the £300 'free' overdraft (ie only interest charged on it) but to have that account costs you £12.50 a month. So that automatically excludes low incomes and hardship customers. I dont think you get the £300 overdraft just by having over £1000 into the account each month.

Do you still use the HbOs account or is it just sitting there in overdraft ? Yes I think £30 a month is too much to have an authroised overdraft if you live in it. So I think paying it off is a good idea and/or moving your account elsewhere. (RBS seems a good option charges wise).

Ame
xx

Ame

Thank you for your reply.
I use the account mainly for direct debits so keep it topped up by a certain amount each month.Would another bank let you switch account with that amount in overdraft or is it at their discretion.I can pay it this time but just to know in case it happens again and I might not be in a position to pay,it seems banks can just spring these things on you.

I do feel Halifax are targeting those they perceive to be in financial difficulties from my cc experience with them- probably some fat cat wants a bigger bonus this year.

[Amethyst]

Re: Halifax Overdraft Charges from 6th Dec

Personally, I;d stay away from overdrafts in future.

If you can pay this off this time, don't have a new one, keep a £0.00 balance as £0.00. Have a £50 overdraft in place as a buffer for your DDs if you feel it is necessary. But always account for it the next month and adjust budgeting to repay the overdraft and get back to above £0

Remember an overdraft can only be used ONCE. It is an expensive loan, especially at the new £1 a day rates (unless you thrash it up to £2499 then its quite a cheap loan lol but don't do that).

(sorry if that sounds all preachy its not meant to be)

[MummyLois]

Re: Halifax Overdraft Charges from 6th Dec

As I'm unemployed, I've contacted the Halifax to claim back charges (including interest) of £720.14 only to be told that ALL claims are on hold pending the outcome of the Court Case!

[natweststaffmember]

Re: Halifax Overdraft Charges from 6th Dec

As I'm unemployed, I've contacted the Halifax to claim back charges (including interest) of £720.14 only to be told that ALL claims are on hold pending the outcome of the Court Case!

Do you have priority debt arrears(mortgage or rent, council tax, utilities)?