Halifax Overdraft - Changes to Accounts £1 a day

[the_freedom_trail]

Thank you freedom_ trail, that worries me even more as my pitiful savings are in the Halifax I also have a Halifax1 credit card. I am thinking of paying off the overdraft and just putting enough money in to cover my direct debits and keeping the rest under my mattress!! or if there is anything left Premium Bonds At 65 I feel that I have been kicked in the teeth I have been a Halifax customer for over 40 years and NOW Halifax are putting the boot in. They arranged this overdraft I didn't ask for it. Ok I agreed to it but on the terms at the time I could manage ,now it is impossible.They even lost me all my money on my free shares. Now it means that my family will get lumbered with my funeral costs instead of me being able to cover them myself. I get the impression that if you have plenty of money the banks will look after you if you don't TOUGH T...Y

 

Please, don't let this worry you cupcake65. Firstly, the right to offset is not often used lightly; however, it is always better to be prepared for what can happen. All you have to do is move your savings to a safer place - take care of your assets first.

 

Secondly, you could try applying to the bank for financial hardship and then see if they might freeze your overdraft interest and simply allow you to pay in an agreed amount till the point that it is closed down.

 

Also, have you tired entitledto.co.uk - it is a website that will calculate for you all of your benefit entitlement - it might just be that you are missing out on a particular benefit that might ease your financial circumstances and reduce your dependency on debt.

 

When it comes to paying off your overdraft with your savings, this all depends on what potentially will cause you must difficulty - a lack of savings or an outstanding overdraft.

 

On one side, savings can be useful for unforseen expenditure - everyone needs a cushion. On the other side, an overdraft that you default on can cause you a lot of grief with collections etc, etc but is not the end of the world.

 

With regards to being kicked in the teeth by Halifax, you are not alone - there are millions of us out there. At one point in time, people knew their bank managers personally - now the relationship between bank and customer has been reduced to defaults and law suits.

 

In summary, don't worry just take the right action. Get your benefits paid in to an account that does not have any burrowing (and that is seperate from the Halifax). Transfer your savings to somewhere safer. Check if you can get any more government assistance. Workout how much of the overdraft you can afford to pay down each month and write to the Halifax and tell hem - if you consider yourself to be in financial hardship - tell them so and explain that you cannot afford their new charges and then go from there.

 

There are a lot of people to help on the forum so you will never be without assistance.

 

Regards,

 

TFT

[sigsoldboy]

Hi everyone, please go to the Dowing Street petition web site were I have started a petition to the government. I am awaiting the approval but the its short link is halifaxcharges and the title is As 43.4%

Shareholders in Lloyds Banking Group should the government

allow Halifax's new Overdraft charges

Details below:

 

We the undersigned petition the Prime Minister to As 43.4%

Shareholders in Lloyds Banking Group should the government

allow Halifax's new Overdraft charges

 

Halifax has recently informed customer that they will be

charging a flat 'fee' for the use of authorised overdrafts.

This equates to £1 per day the customer is using an overdraft

below £2500 and £2 over £2500. This is a move by the bank to

unfairly charge people who are in financially weaker situations

and as such the Government should step in to stop the bank

undertaking this change due to come into effect on the 6th

December. The interest breaks down as such:

 

£0.01 Overdraft: 3,650,000% £100 Overdraft: 365% £100

Overdraft: 73% £500 Overdraft: 36.5%

 

This is clearly very high rates of interest and most people

with overdrafts between £1 and a £1000 will see a minimum of

double the previous charges.

 

Halifax literature claims this is a fairer way for customers to

understand charges; it appears to be a move by the bank to make

excessive profits from the less fortunate who live within

overdrafts or are not able to clear thier overdraft, such as

post graduates, the unemployed, the less wealthy. The

Government must take action.

 

Lets take some positive action.

 

Many thanks,

[sigsoldboy]

Link: Introduction to e-petitions | Number10.gov.uk

[*lozzy*]

Hello everyone I am new to this site but had to join after seeing everyone else in the same boat! I got the letter from Halifax too. It seems ridiculously unfair but then I guess thats just banks! I have a £500 overdraft on a current account with Halifax which is usually round about its limit and have been paying around £6 a month interest obviously now this is going to be more like £30 arggghh! Also I'm a student and have an interest free student account with them with a bigger overdraft, does anyone know if that will be affected as well?

 

Sigsoldboy I will sign your petition but I couldnt find it, it might just be me being a bit thick! lol

[coolchris]

I dont think student accounts are affected, but check the rip-off banks website. "A little extra help"....jeez...a little extra few million for Halifax more like.

[coolchris]

Link: Introduction to e-petitions | Number10.gov.uk

 

 

That link takes you to the petitions website, not the actual petition itself. I searched for it under "halifaxcharges" but came up with zero.

[*lozzy*]

lol thanks coolchris I will have a look on there. What a rip off though!

[sigsoldboy]

Sorry I may have jumped the gun on issuing the thread....wanted to get it up as soon as possible.

 

I'm waiting for the Petition to come up, I submitted it at 1pm (ish) so depends how long they take to approve it. I'll keep checking but its great people want to sign it.

 

I've also written to my MP on WriteToThem - Email or fax your Councillor, MP, MEP, MSP or Welsh, NI, London Assembly Member for free

I've used that before and had a response.

[indebtstudent]

"Tell Halifax in writing that you do not accept those new T&Cs and will no longer be using the account, but can not afford to pay off your o/d before closing it, and ask that they keep on running it under current T&Cs whilst you pay it off, the way credit cards have been doing."

 

I can't see any reason why we can't do this, I know bank account are not the same as credit cards; but it seems to me this is a fundamental change to the contract they are making.

 

Furthermore I simply don't think they should be allowed to get away with it. It sounds great we're no longer charging interest, but effectively they ARE charging a much higher rate of interest.

 

I spotted one line in the booklet saying you may be charge more, I would wager the majority of people who use thier overdraft will pay more. If some kind of boycott can be organized that's the only way they will have a re-think.

 

With reference to savings even without these charges you would be better off paying off the OD. Most overdraft rates these days are punishing and savings rates a derisory.

 

Depends on your individual circumstances of course but as a general principle it is correct.

[sigsoldboy]

Just read the T&C's again and if you do put a £1000 pound into the account a month they will pay not pay you any interest. So basically they take you money for free.

 

I do so they give me £5.00 in return. So that could be a positive.

 

I just checked my statement and last month I paid -0.38 p in bank charges, Interest on paying in minus interest on paying out.

 

On average im 7-8 days in my overdraft facility at the end of a month and never more than £100, so this will now be a negative -£3 or an extra £36 pounds a year in charges, compared to my prior £4.56.

 

Halifax are going to spin this, they now give £5 in interest, and only charge £5 a day for unarranged overdrafts, so if you do go over you no longer get the £35 fee but instead £5 a day, so as long as you are not over your overdraft for more then 7 days, this should be cheaper.

 

It seems to me they are balancing the books in preperation for the court ruling on charges, just more inventive ways of ensuring the gravy train continues.

 

If you have money however, this probable will not affect you at all.

[smiffysmifferson]

I have received this letter today and, for one am just grateful to them for making 'it easy for you to calculate what your overdraught will cost you each month'. Its 'simple and easy to understand' - absolutely right it is - 'we're stealing money from you' is - i think what they mean. This is an outrageous tax on the poor - the same people they were extorting with their unarranged overdraught fees - there is no way they would try to pull a charging stunt like this on their rich, in-credit, customers - they know that they would be off like a shot! People stuck in their overdrafts are easy fodder for those greedy [insert]. I agree with previous suggestions that this is a preemptive and spiteful move in afvance of rulings on the immoral unarranged bank charges they once raised. Let's get together and tell them what we think - I'm with signing any petition and making as much noise as possible.

[Calpol]

I've just had this letter.

 

We told them last night we were looking to move all our accounts mortgage etc to another lender. To be honest, the person on the other end of the line couldn't care less. We've been with them 10 years plus.

 

 

That's what I find really strange. I feel like they're telling me my custom is worth nothing.

[maroondevo52]

That's what I find really strange. I feel like they're telling me my custom is worth nothing.

 

Spot on !!! they don't give a jot.

[indebtstudent]

Erm wasn't there something said sometime ago about not making changes to the detriment of customer whilst the case was on going. I believe Lloyds and RBs are open to the same charge.

[angel_1]

THANKS bookwork from me too

 

i too have had the letter - so if i cannot clear the overdraft then it will mean more charges at the end of the month

 

look forward to any letters i too can use

 

huge thanks angel x

[sunsh1ne]

I am at my wits end now with all of this!! I am angry, upset, worried.

 

I am CONSTANTLY in my overdraft, bar one or two days after payday until my dd's come out. I ran my overdraft up moving house and with my new cost of living I cant claw my way back out! Every now and then il go over by £5 or so (mostly because my online banking tells me I am in credit when this is not the case!) but in that instance I can say well right ok I went over thats the one off charge I have to pay! Now I am being charged as much even if I dont go over my overdraft.

 

So I will be charged £30 a month. I simply cannot afford it!! I cant move banks because i cant afford to pay it off, I would rather get a loan to pay it off and pay them £30 a month!!! I know its one debt to another but at least there will be an end to it.

[coolchris]

I am at my wits end now with all of this!! I am angry, upset, worried.

 

I am CONSTANTLY in my overdraft, bar one or two days after payday until my dd's come out. I ran my overdraft up moving house and with my new cost of living I cant claw my way back out! Every now and then il go over by £5 or so (mostly because my online banking tells me I am in credit when this is not the case!) but in that instance I can say well right ok I went over thats the one off charge I have to pay! Now I am being charged as much even if I dont go over my overdraft.

 

So I will be charged £30 a month. I simply cannot afford it!! I cant move banks because i cant afford to pay it off, I would rather get a loan to pay it off and pay them £30 a month!!! I know its one debt to another but at least there will be an end to it.

 

Me too. Exactly the same position, except I am a at-home carer for my mum. I am going to write to them to see if they will do a "poverty" assesment and thus let me pay it off by instalments. I, like you, am totally sick to death of these greedy bastards.

[sunsh1ne]

I wonder how many customers they will lose to this? Reading other posts it seems they dont really care - at the end of the day they will most probably make more than enough money off those like us who cant move to compensate for those who can.

 

SO SO angry!!!

[janzer]

I Think the b......s have been very clever - I am sure something is in the air with the test case etc. - they have now got this new charges thing - ie the £1 per or the £5 per day - if they have to refund all the charges then all anyone can do to avoid these new charges is to use their refund to clear the overdrafts - Halifax get their money back!!!!!

[coolchris]

We really need to get some kind of correspondence going as knowing the Halifax they will put Customer relations on the backburner until the last minute, so the sooner we send off the letters, the better.

[Bookworm]

Here we go:

 

http://www.consumeractiongroup.co.uk/forum/halifax-bank-bank-scotland/226753-complaint-about-halifax-new.html#post2512610

[Bookworm]

Please don't panic!

 

For those of you who are now feeling you've been trapped, please read this:

 

http://www.consumeractiongroup.co.uk/forum/getting-out-debt/73030-taking-back-control-your.html

 

It is NOT the end of the world. If we can't get Halifax to listen, then follow the advice on that post, change banks and treat them with the same contempt with which they have treated you. PLEASE do NOT take another loan to pay them off, that may be exactly what they are hoping for.

 

Worse case scenario, you will pay them off at £1, £5 a month. So what? What have they ever done for you? If they keep on lobbying the £1 a day, so what? Keep track and reclaim it all, I am pretty sure that it is as clear-cut an unfair term as I have ever seen AND it is not covered by the FSA waiver, so you should be able to take it to court. Either way, it is simply a non-essential debt.

 

DON'T let them grind you down. I have a £200 o/d with them and I am going to get hit squarely on the head with their new structure, unless the money fairy comes and visits and the beatch seems to have lost my address. As far as I am concerned, they can add £1 a day until the cows come home, it is just them inflating an artificial debt I don't actually owe them. I didn't agree to these terms, I am telling them I am not agreeing to these terms, let see if they DARE ask a judge to hold me to them!

 

Chin up, peeps, they have tried to break us before and failed. You are thankfully not tied up to them so don't behave as if you were! ;-)

[coolchris]

Absolutely fantastic Bookworm. You have certainly made my day, not only with the template, but also with your great words of encouragement. It was just what I needed to put my brain back in gear and think positively instead of them assholes breaking my spirit.

Like the "beatch" comment. PMSL:lol:.

[the_freedom_trail]

I wonder how many customers they will lose to this? Reading other posts it seems they dont really care - at the end of the day they will most probably make more than enough money off those like us who cant move to compensate for those who can.

 

SO SO angry!!!

 

As is often the case, those who aren't trapped are unlikely to move because this wont affect them - people seldom have o/d's if they don't require them. In any case, you are just as likely to be screwed by Halifax as much as any other bank.

 

What a nice way to repay the tax paying public for the bailout that saved the bank. Thanks Halifax, means alot!!!

[the_freedom_trail]

Hello Bookworm,

 

Out of interest, what is your opinion on the legality of these new charging structures? Surely we cannot go with Test case take 2 - although stranger things have happened. I agree with your earlier post, it certainly seems to be an unfair term.

 

TFT