Halifax are adding unplanned OD charges to current account: please help.

[Ecatsue]

Hello,

 

I would be very grateful for some help or advice with a Halifax current account.

 

I am self-employed. At the moment, due to general health issues and personal problems, I have been keeping my business fairly low-key so there isn't much money going in and out, and some months I go very close to my overdraft limit.

 

I admit that some months I have gone over the limit and into what Halifax calls an 'unplanned overdraft'. I have copped the charges for this, added on or around the 1st. day of the following month. I have no objection to paying bank charges where the fault is with myself. I do think the charges are disproportionate, but that is a separate issue.

 

The problem I have with Halifax is that, having reviewed my bank statements over the last 12 months, in the majority of cases it is the Halifax 'unplanned overdraft charges' that have sent me over the limit. For instance, just today, Halifax have added around £90.00 in charges. This is because last month I went around £12.00 over the limit for about 6 days, but I only went over the limit because Halifax had added £22.00 in charges, and those £22.00 in charges were only added because the month before that I had gone over the limit due again to Halifax charges, and so on and so on and so on....back it goes.

 

I stress again that I have no objection to paying bank charges where the fault is with myself, but Halifax's totally ridiculous and disproportionate charges are creating a vicious cycle, and it's not easy to get out of it.

 

The sums involved are modest. The OD limit is only £70.00. However, this is a very annoying situation and I would be grateful for some advice on whether Halifax are adding these charges unlawfully or I otherwise have a basis to challenge them.

 

Many thanks in advance.

Edited May 2, 2013 by Ecatsue

[Ecatsue]

For those interested, I now have an update. I spoke to Halifax customer services just now. They offered me £35.00 in full settlement, which I refused. I then went back and looked through my bank statements online for the past six years. Fortunately, I had very few transactions until relatively recently, so it was quick work. I have totted-up the total of the unplanned and planned overdraft charges that I think are questionable. This calculation excludes those charges that have been applied where I have gone overdrawn (as opposed to the bank charges causing me to go overdrawn). In all, I calculate there are almost £900.00 worth of charges here which I consider questionable. This is over a period of some three-and-a-half years.

 

I went back to the Halifax and told them this. I emphasised that I am not suggesting I should be refunded the whole sum, but I do think the charges were applied in dubious circumstances and I should have a refund of some of it. They spoke to their own customer relations (who deal with complaints) and the response is that they consider it is for me to operate my account in accordance with their terms and conditions and to manage my own finances correctly.

 

Of course, that argument has some validity, however it conveniently overlooks the question of whether their terms and conditions and practices are fair and reasonable in the first place. Let's also compare the conduct of myself and Halifax for a moment. I am at fault in that I have, on occasion, gone over my limit deliberately or inadvertently and I accept that I should be charged for this unauthorised borrowing and that the borrowed sums have to be paid back quickly. Halifax, by contrast, has taken money from my account, not merely borrowed it, and with no prospect that the relevant sums will be paid back to me. The sums taken are totally out of proportion to the margin by which I have been overdrawn at any one time, and furthermore, in each case, it is the bank's own charges that have caused me to go overdrawn - yet, the bank offers me no relief or consideration whatever other than a token sum of £35.00. The fact I may have had advance notice each month that this would happen does not make it reasonable. A burglar does not have a legal defence if he warns the home-owner beforehand that his house is going to be intruded at the beginning of next month. The way I see it, they have raided my account and plundered it on a rather dubious pretext. It's almost akin to what the Americans call 'racketeering'. Where charges are being applied recurrently and those charges are causing me to go over my limit, then the practice has to be questionable, surely?

 

But I would appreciate some advice. Others must have encountered this situation before.

Edited May 2, 2013 by Ecatsue

[citizenB]

You might want to have a read of the BCOBs articles, which are highlighted in green, in my signature (below). I am pretty sure you will find a similar situation that has been highlighted and a draft letter that you would be able to use.

 

If you want further help with BCOBs after having a read.. then just ask

[Ecatsue]

Great, thanks. I'll take a look at this.

 

Halifax have said they are going to issue a letter to me setting out their position. I expect to receive that within about seven days, and once received I will draft a reply (and post it up here, if appropriate).

 

Thanks for your help.

[citizenB]

Yes, please do let us know what they have to say.

[AndyOrch]

Hi Ecatsue and welcome to CAG.

 

There are a lot in your position if the truth be known and yes it is racketeering because they can and have you in their control.There is only one way to end this vicious cycle, and it is easy to get out of it.Set up alternative banking facilities and isolate the Overdraft you have to get off their money making merry go round and deal with-it head on.

 

Once the OD is isolated and you are independent to them then you can either negotiate a payment plan or consider claiming back those charges or let them instigate litigation for the amount which you can then defend and counter claim.Defending in litigation is far easier than claiming and lets face it you really cant carry on as you are.

 

Regards

 

Andy