Unjustified Halifax Charges?

[hollter]

What a great forum!

 

Here's my problem. I have a Halifax cash card account. It's a very basic account that has no overdraft etc. and I run it as a second account that is basically for leisure for myself. I have had it for about 6 years and have never gone overdrawn so I've run it perfectly.

 

I use this account as my main Paypal funding account if I purchase off ebay, I have a back up account linked to Paypal if there are insufficient funds in this one. I recently bought a couple of items off ebay for about £10 and £15 respectively. However I only had £4 in my Halifax account, which I knew about, so Paypal has taken the money out of my other account - which is what I expected. However when I got home last night I found that the Halifax has charged me twice at £35 each because Paypal attempted to take these items from my account. I now really am overdrawn due to the bank and frankly livid.

 

I had a assumed that all Paypal does is query the bank as if there's sufficient funds and if there isn't it goes elsewhere for the funds. I didn't realise that I would get charged for this process if there was insufficient funds to take the money out. I phoned Halifax and basically got told I should have read the small print, but I'm hardly going to remember the 'small print' from 6 years ago, and I'm sure that Paypal didn't even exist then.

 

SO my question is, can they do this, what should be my next step? I've asked to log an official complaint but I'm not sure where that will get me. Money is extremely tight for me as it is for many at the moment, and as small amount as it it is, it does have an impact on me that I could do without.

 

Thanks in advance

[Mr lex]

Hi Hollter,

 

Welcome to the Consumer Action Group

 

I don't think you will get anywhere going after 'Paypal' You get to say which account the money is taken out of.

 

However, Halifax is another kettle of fish. In the first place ask at your local branch, they will sometimes do a refund as a 'Offer of good Faith' (sic)

 

If they wont, then you are going to have to start a claim to get these grossly inflated charges back. See the step by step guide in my Sig. below.

 

When you start to send off your letters, they will probably try to tell you you can't claim because the case's are 'stayed' It is important that you ignore this and carry on, only the courts can put a 'stay' on your claim.

 

Although the banks have a ongoing test case with OFT there are a number of reasons why you should start to claim at court now.

 

Any older charges (coming up to 6 years) could be lost if you wait for the OFT case to end. Start your claim now and those charges are protected.

 

When the stays are finally lifted, you will be one of the first in the queue to get paid.

 

While the banks are protected by the stays, we the consumer, have no such protection and charges continue to mount up.

 

For some people this may mean going into default. If it is clear that the default was made in respect of charges and that it was lodged after a charges claim was begun then these users have a really excellent chance of having it removed.

 

Hope this helps

 

Lex

[hollter]

Thanks very much for the prompt reply!

 

I shall go into my local branch this lunchtime and hopefully have some luck. As an added note to this, I have just checked my bank account and they have taken another £35 out of the account which is quite frankly appalling. Particularly as I spoke to somebody last evening and no mention was made of this.

 

It really sticks in the throat considering the current climate

 

Terry

[Leith1875]

Hi Terry

 

Just read your thread with interest as my partner is in the same boat.

 

Thanks for the advice Lex, I feel in a good position to do battle with HBOS.

 

My partner received a letter today with 3 x £35 "fees" because 3 direct debits did not have enough money available and "as a result we will take fees from your account".

OK gonna try stage one and send her into the branch and ask fro the fees to

be waived, fingers crossed.

 

I have a question.

 

The account is now be in unauthorized overdraft, so should I tell her to leave as is or find funds to get it back into the black?. The next monies due into this account will be next month.

 

Kind regards

 

/George

[maroondevo52]

Hello and Welcome, George.

 

They will continue to add further charges, if your partner can get the account back into the black, then this will obviously be avoided.

 

If it's the first time charges have been applied, then your partner has a good chance of them being refunded, if not, the quicker a claim is started, the better.

 

 

Regards.

 

Scott.

[Leith1875]

Cheers Scott

 

Will send her into the bank on Monday

[Leith1875]

Hi,

 

Good news My Missus just called, she has just seen the Bank Manager and all charges have been nulled.

 

:D Tyhanks again for the good advise and keep up the good work.

 

/George

[maroondevo52]

Good stuff, George

 

Always worth asking

 

Regards.

 

Scott.