Halifax Overdraft - Changes to Accounts £1 a day

[susiemac77]

After FOUR separate phonecalls (including the specialist team set up to deal with "them being inundated with calls about this") I still haven't been given a definitive answer

 

After checking the letter I received formalising my repayment arrangement I found a sentence stating that as long as I continued to meet the agreed monthly payment, no charges would be added but they would continue to add interest

 

I called collections to clarify that since the new fees are charges, not interest, that they wouldnt be applied. She said on the contrary she thought they would and should(?) be applying the £5 a day. She was incredibly rude and only after I refused to be fobbed off did she give me another number to call. The woman I then spoke to was lovely and said she completely agreed that I shouldnt be charged if the letter said no charges. She then put me on hold and spoke to head office and came back with the number for the specialist team.

 

The guy in the specialist team "had never been asked that question" and went on to head office himself. He came back and told me that since I was in a formal arrangement the o/d would be classed as arranged so would be £1 per day not £5. I told him that while this was better as at least the o/d would be decreasing I still wasnt happy since the letter had said no charges would be applied.

 

He went back to head office and this is the best bit......apparantly even head office don't know whether the charges will be applied and I have to wait until after the 6th December, check if the charges have been applied and if so phone complaints and or/head office to see if it can be rectified! Even the guy at Halifax was completely bemused that his own head office had no idea what would be happening in less than 6 weeks and he apologised profusely for not being able to answer me properly. Unbelievable!!!!!

 

On a slightly different note - if hbos is indeed fully merged into Lloyds TSB, will right of offset be applied from hbos arrears to Lloyds current accounts?? My new account is with Lloyds and am worried they will go into that account to pay off hbos c/c arrears

[dee2108]

I have also received the letter. Very angry as I have been with Halifax for 7 years and up until June I had an overdraft of £500. I was then offered an overdraft of up to £4500, to which I foolishly took £3500. Did they know then about the changes and why was I so stupid not to realise something was a drift???

I am opening a new account in the republis of ireland now (I live in Northern Ireland) and will be signing the petition and sending letters.

I am disgusted that they can change the terms and give me 6 weeks notice.

I will also be spreading the news to raise more awareness of this robbery.

sigsoldboy/bookworm, great work so far.

[surprise]

Halifax have known about these changes for sometime. Initially I had the Electron Card and last Dec I was told they were phasing these out and I needed to change. This I did in January 09 with £100 overdraft facility. Then a few weeks ago I was in the bank and I was told to make an appointment to see an adviser because I used the overdraft regularly there would be a better account for me and it would be cheaper. I was told these changes would be effective from 6th Dec 09 so I was told to make the appointment before that date.

 

I was already fed up with the Halifax over some issues and I had already opened a new account and I am currently in the process of moving everything away from them. I also have a complaint in with the FOS regarding the dating of items on statements when you bank on line, which I have read someone else has had problems with.

[indebtstudent]

I don't care what is in the temrs and conditions HOW can they make a major change to the contract TO THE DETRIMENT OF CUSTOMERS and have customers be bound to it.

 

Has ANYONE tried insisting that they would pay back on the original terms?

 

I can't see how they object since you can't take silence as acceptance of new terms.

[Bookworm]

That's the gist of the templates I wrote, IDS, clearly and firmly saying: "I do NOT accept those new terms, I can't just close my account, what are you proposing to do about it?"

 

I know that credit cards such as Cap1, when they hiked the interest rates a few mths ago, gave people a choice of continuing to use the card and thus accept the new interest rates, or they could write to Cap1 saying they didn't want those, stop using the card and pay off the balance at the existing rate, which I thought was a fairly reasonable way of doing things and I can't see what HBOS shouldn't do the same.

[Its WAR]

Just went into my other bank. They are getting loads of applications to increase overdrafts because people are wanting to pay off their Halifax accounts, and leave in droves it seems.

[bigyeti]

I've just posted off the letters to Halifax and the OFT. I don't want to come across as chronically cynical, but the bank will no doubt drag their feet on action (if any) until well after December, and I can't see the OFT doing anything with any sense of urgency.

 

I switched over the A&L recently, and was hoping they would match the overdraft which would allow me to leave Halifax, but it was not to be. The only option I can think of would be to offer a formal arrangement to pay off the overdraft using the current T&Cs, but I can't see them agreeing to that somehow.

[sigsoldboy]

I'm going to attempt to open another account this weekend but I fear I will be in the same boat as bigyeti. I dont earn a lot of money and even though for the last 3years I have been a very careful and never miss payments my credit rating is still low due to a default a long time ago im still paying off.

 

Thanks Bookworm for the great work, if I can move account I will attempt the cancel at the old T&C's i.e I do not accept the new conditions and will post as soon as I can my results.

 

I still think our best chance to get this registered with government through contacting your MP's and the petition. Petition to: As 43.4% Shareholders in Lloyds Banking Group should the government allow Halifax's new Overdraft charges. | Number10.gov.uk

 

OfT is great but will take a looooooong time for any action.

 

Thanks as well to Watch dog for showing this but again its just not that easy for all of us to hop and move account.

[surprise]

I've just opened a NatWest Step account on line, they have been very quick. 3 weeks from completing the application on line to receiving my card. It gives you a Visa Card, no overdraft but allows d/d's and s/o's.

[reidnet]

Petition Signed Going in this week to close 2 Halifax Accounts and tell them I dont agree with their new rip off money making scheme..

 

Hi Bookie. How you doing ?, Apart from still fighting hard..lol x

 

Ian

[Bookworm]

Reidyyyyy!!! There's a blast from the past! I'm ok, still tilting my lance at windmills.

[I hate Halifax Bank]

BBC NEWS | Programmes | Moneybox | HBOS overdraft fees criticised

 

Just posting link from article on BBC website regarding new charges

[coolchris]

BBC NEWS | Programmes | Moneybox | HBOS overdraft fees criticised

 

Just posting link from article on BBC website regarding new charges

 

Thanks for the link. HBOS say that most of us dont use the overdraft and if we do its only a very few. ...Yer right. Bull**** and lies as usual.

[indebtstudent]

I totally agree with Bookworm I don't see how they can force people to abide by the new T & C's if you reject in it writing and make proposals to pay the balance.

 

I was going to say its like changing the price for something after signing the contract. Then I realized it wasn't like that, it IS that.

 

If I quoted for a job, any job, then changed the price I doubt I could force the other party to pay the extra. This is what Halifax are attempting and I would've thought you are withing your rights to reject this revision.

 

BTW there was also recent news from the FOS saying they are getting loads of complaints about banks not taking hardship cases seriously.

 

I hate to say I told you so but can we all now agree the waiver is an utter joke?

[DDWales]

I had the overdraft charges letter on Friday and just picked up this thread. Am very annoyed to say the least. As noted in previous posts, I think Halifax know they are going to lose the Test case so are doing this to recoup any future losses. Disgusting. I phoned them up friday evening and the chap i spoke to was great and sympathised as he was going to be in exactly the same position!

 

I am going to pay off the oustanding amounts on the overdraft and shut the account down shortly:mad: I only have a small overdraft but what about those with ones for say a few thousand?

[cath3672]

Went in Alliance and Leicester today and applied for new account, offered me the £100 for switching etc so hopefully it will all go through ok and I wont need to stress about these Halifax charges any more, especially in the run up to Christmas !!

 

Cath

 

I also got all the leaflets in the post the other day about applying for a loan - they went straight into the shredder

[reidnet]

Went in Alliance and Leicester today and applied for new account, offered me the £100 for switching etc so hopefully it will all go through ok and I wont need to stress about these Halifax charges any more, especially in the run up to Christmas !!

 

Cath

 

I also got all the leaflets in the post the other day about applying for a loan - they went straight into the shredder

 

Yeah, would that be the same Halifax loan offer I had with a rate of around 19.7% apr..lol, No doubt others will follow with their offers in the run up to Xmas..

 

Ahhh Bookie, Did you miss me..lol :D Hopefully I will be around a bit more these days too, Had a bad year with personal things going on etc, But now the dark nights are here again I will be too.. Im not alowed out after dark in case I scare folk

[Bookworm]

Ah it's all right, at this time of the year they'll think you're out trick or treating, lol.

[sigsoldboy]

Would anyone here like to appear in a short film/documentary about the halifax charges ? They just require 15-30mins of your time, you must be in London and give your time for credit. Please e-mail [email protected] (the production company) for details.

[Anxious]

I had an arranged overdraft with Halifax of £1800, which I now pay, on average, a fee of £28 a month because I've needed to use the facility to cover my bills and mortgage. I was told that the overdraft was going to be withdrawn, no reason, my salary of £2100 continued to be paid into my account and my Halifax mortgage had never been missed.

 

I explained that I couldnt repay the overdraft immediately, I was given less than 3 weeks notice, and they eventually agreed that the overdraft would be reduced by £150 a month over the next year, but the £1 a day charge, ie £30/£31 fee would continue............therefore I have a debt of £1650 with a £30 fee a month...over the next year I will repay over £300 charges

I was fortunate to have another account with Barclays and moved my salary and bills to them

My inability to repay the £150 a month has now resulted in the overdraft being totally withdrawn, and the fee is now a whooping £5 a day........

how can I stop this? Halifax dont appear to care, just want the money

[indebtstudent]

Send the templates above. I cannot accept that they can compel you to accept this massive change to the contract.

 

It is changing the price of something after the fact. You wouldn't accept it from a shopy so why expect it from your banks. Send the templates on here until there is something definate to use.

[sigsoldboy]

Hi Anxious, a very worrying turn of events, having an overdraft I cant repay either its concerning to read such a post and would like to clarify a few points with you:

 

T&C's section 27.

 

Section 27.2 states that they will "decide whether or not to continue to provide it (arranged overdraft) or not" at your review point. So when was your review point ?

 

They can change your overdraft if section 27.3 applies:

Failed to fund your account

breach of conditions

Your circumsatances have changed for the worst

reasonably believe that the risk of lending has increased

reduction of overdraft is necessary to prevent you getting in further debt (LOL bunch of wan*ers)

 

Did any apply to you ?

 

Section 29

 

29.5 At any time we may required you to pay us the whole or part of any overdraft, interest and fees or charges which you owe on your account.

 

having read this for the first time, it is worrying. I hope others can suggest solutions other than just debt transferal but I would seriously suggest contacting your local CAB, getting your name on the 10 downing street petition, writting to your MP, moving your mortgage etc etc.

 

sickining.

[Anxious]

ok going through

Section 27.2 review was due Sept 09 the od was withdrawn in August after only 3 weeks notice

 

Section 27.3

Salary was paid into account religiously, full time permanant contract as a teacher which ensured that my circumstances will not change

 

risk of lending?? Ive a Halifax CC with £4000 which I have a reduced repayment plan with no interest. The Halifax issued a default on this in June 09

 

Section 29.5

they have just withdrawn the facility with limited notice

 

clearly the default with Halifax CC has prompted the withdrawal, but I am in work on £36, ooo my take home is £2110, mortgage is now £590 and always paid so Im I really such a great risk?

[Bookworm]

Sigs, you are correct that they CAN change the T&Cs, what they CAN'T do is force you to accept them. If you don't, then you part company. At that point however, they CAN'T force you in an adverse position, they MUSTN'T force you to take on additional borrowing to pay off the debt and they MUST come to an arrangement that will work for YOU.

 

We MUST stop thinking like victims. The bank has only has as much power as we allow it to have. If they only want you as a cashcow and you'll end up worse off than ever, where is the balance in that relationship? What's in it for you? What loyalty do you owe them? Answer: None whatsoever.

 

Yes, it is inconvenient for us all to move and start elsewhere, we all like our routine, and it's time and energy spent we could all do without. But the choice is pay up or get out. So when you get out, make sure it doesn't end up costing YOU huge amounts for them to get rid of you.

[Anxious]

ok, Ive moved my account and salary too

 

the arrangement with Halifax to repay the monies over a year which equates to £150 a month plus the £1 a day say that means I need to put £`180 into my account monthly

 

I paid the first month, overdraft down to £1650, but realistically cant sustain the £180 a month.

Wrote to them at the end of September, didnt pay, they held the overdraft until about 21st Oct

They withdrew the od and now charge me £5 a day, thats already over £50 even though they know my circumstances

The problem is compounded because I struggle to use a phone being partially deaf, which the Halifax is aware of, hence the letter writing.

 

So the local branch are unable, or unwilling to help.....offering me a phone call!!!

 

The longer this goes on the higher the penalty, it so quickly spirals!