Halifax withdraw overdraft with 3 weeks notice

[infojunkie]

Hi, just looking for a bit of advice about halifax and them withdrawing a 2k overdraft on a joint account. I received a letter from them as my yearly overdraft review was due (it has been approved every Jan since account opened 5 years ago) stating that they are withdrawing my OD as it has 'expired', the withdrawl letter was dated 6 jan, and i recieved it on 10 Jan, saying the withdrawl will take place on 1 feb.

 

I rang them straight away and was told that they are not willing to discuss the matter untill the overdraft has lapsed. Also they dont have to give a reason why. I then wrote an email complaint to which i have received a reply, reaffirming it will not be discussed untill 1 feb, and 25 quid for my troubles. I ststed i was aware that an OD was a short term borrowing facility, and i was more complaining about the 20 days notice.

 

As i dont have the 2k to pull out and pay it off, i am panicking as they are going to start charging me 5 per day plus interest and charges for using 'an unauthorised overdraft'. Further, my husbands wages are due to be paid in on 31 Jan and i am scared they are going to freeze them and use to repay overdraft.

 

Now i have kick started a new acc opening with another bank but it has ground to halt as my husbands driving licence had not been updated with our new address (naughty i know) so the new bank has asked him to contact hmrc and get a tax notification letter but this is going to take 7-10 working days to get to us and obviously his coming payday is going to be here before that letter will.

 

In desperation i contacted CAB and was advised to make a first right appropriation letter to the bank which i did. I personally took it to the bank and the lady disappeared with it for a good 15 minutes. She came back and said hands are tied nothing more they can do, before i left she tried to flog me a loan, and said if i do it now my chances of getting it are extremely good, if i wait til feb and they have messed up my credit rating by withdrawing the OD - i probablies wont get it! Nice.

 

Is there anything else i can do? I cant believe they can do this. I have a good credit rating (just purchased 3k sofa at dfs in december no probs) my account has been ran in exactly the same way since it opened, the OD has been paid off in its entirety many times, and we have volunatrily made payments to reduce it over time by chipping away when we could afford it (it was originally 2.5) As a foot note, and rather ironically on the same day i received this bombshell letter about the OD, in a seperate letter it was Halifax offering me a pre-approved loan of 15k!!! Also over christmas my chip and pin card got damaged so i had to ring to order new one and they offered me a credit card with a 0% promo rate! I just dont get it, any suggestions appreciated.:

[BankFodder]

I think that these peremptory overdraft withdrawals are very unfair.

Of course the bank will say that they have a contractual right - but in fact this has to be subject to the fair treatment rules under BCOBS.

 

I think that the main question is - what are you prepared to do about it. If you are prepared to take a very assertive stance on this - which could include taking legal action then I think that you have a better than even chance of success and we would support you all the way.

If you are not - then you had probably just better accept it.

 

Some questions:-

How long have you had the account?

How long have you had the overdraft?

Has the account and overdraft been well run?

What might have triggered this all off?

 

One thing you should be aware of is that their refusal to discuss it until the period has expired is extremely unfair.

 

What they are doing is - ignoring your reasonable request to discuss it until the period has expired. The when you miss their deadline for repayment, they will default you, wreck your credit file and then start chasing you for the money.

 

It is really disgusting treatment - but that is the way they behave.

 

I suggest that you put in a formal written complaint right now - so that it is on the record that the treatment is unfair, that you have tried to engage with them - and that they have refused.

Make sure they realise that it is a formal complaint and that you intend to go to the ombudsman.

[BankFodder]

Incidentally - the solution you should be looking for is that they convert the overdraft into a loan which you repay at a manageable rate.

 

Where someone has only recently been given their overdraft - and it hasn't yet become a lifestyle thing which you depend upon, then it is probably fair enough to call it in. However, where an overdraft has been granted over a long period of time - and it has been well managed - then I think that peremptory withdrawal is unfair if it will cause harm to the customer.

[infojunkie]

Thanks for your reply Bankfodder. We have held the account for 5 years this month. I cant actually remember how the overdraft escalated tbh, i think we started off with 1k and we got it increased to 2.5 about a year after acc opening, this was just a button we pressed on online banking and it was done! We have paid 600 of it back to them and the OD is standing just below 2k at 1,900 right now. Last year i think it was, they sent out a letter saying that overdrafts over 2k would incurr a 2 pound per day charge whereas below 2k would incur a 1 pound per day charge. We got it under 2k pronto which is why its 1900 now. Dont know if this is the reason they are treating us like this now! It is an ultimate reward current account, so we pay a monthly fee of 15 per month on top of the 30 quid OD fee as well. I know its daft to live in your OD but it has been hard paying off! The account has been pretty well run, i get credit no problem when i want it, for example i have a car hp and other smaller credit.

 

I think i will send another letter to the complaints department, mentioning the right to appropriation (id never heard of this) but tbh it didnt have them quaking in their boots in branch. At this moment in time im not really bothered about my credit rating, am just scared we are going to have no money to live on untill the end of the february if they take his wages. He is going to ask at work if he can have his wages paid into my single account which is just in my name but unfortunately still with the halifax, so am not entirely sure they could still take it out of there (i have banked with them for 22 years) I am totally mad enough to make a stance with them and i honestly think this is not right treatment, although after reading some peoples stories at least i was given some notice instead of none at all!

 

What is your view on this 'first right of appropriation' then, is it weak? Thanks in advance. Also, am i being cyncial in thinking that this unfair and aggressive treatment is a sales ploy ie they get their overdraft back and i am forced to take out a loan WITH them to pay it off, it therefore looks like they are lending for their stats and a little pat on the back for hitting their lending targets?

[BankFodder]

I would recommend that you don't mention the right of appropriation at the moment. That will provoke them. They don't like it.

 

I suggest that your letter simply accepts that they have the right to withdraw the overdraft - however, they have not given any reasons and as you consider that the account has been well run and that you have depended on the overdraft for a long time, that you consider that it will cause you hardship and that it would be unfair for them to require immediate repayment.

Tell them also that you regret very much their decision not to enter into any discussion with you until the overdraft period has expired.

tell them that they have a duty to treat you fairly and to communicate with you fairly and they are not doing this.

 

Tell them that you are happy to repay to repay the overdraft and that it would be best that it is converted into a loan and repaid over a reaonable period of time - say 24 months (you will have to calculate what you can afford here).

 

Let me say, that they are pigs and they will not discuss with you and they will not consider any reasonable approach from you. However, you need to get this down in writing so that you can show that you at least have tried to deal with this sensibly and maturely.

 

Don't talk about appropriation. This will put them very much on the offensive.

[infojunkie]

Yeah i will do that today, thankyou for your time and i will keep you updated. I think even if they reinstate the overdraft on the first of feb(which i have been told by the lady that rang me back after my first complaint they may well do) i will be just as mad as if they dont, after putting us through this stress for weeks worrying how we are going to manage, yes pigs - agreed!

[Klandestine]

Your circumstances may have changed so that you no longer fit the criteria their for the overdraft facility - e.g. you've taken out some form of credit recently, there is a reduced monthly turnover going through the account

The banks own attitude to risk may have changed meaning you no longer fit their criteria for the overdraft facility.

[infojunkie]

Yeah it was very strange but the lady i spoke to from halifax compaints mentioned there could of been a change of circs with us and that they wouldnt know if this had happened. I asked her like what, and she came back with you could of lost your job or been divorced!! I couldnt believe it so i asked her if , on the offchance I may have been deivorced recently thrn they could then justify taking the OD away and she said maybe. I told her none of those things applied to me, and if anything, there is more money going through the account now than there ever has been. I have had my car hp since 2012 and no other credit recently other than the sofa i mentioned which isnt a fortune.

I honestly just cant fathom this out. I think the banks should be forced to give at least 6 months notice of the withdrawal intention to give you a fighting chance, thats all i am asking. Sent another complaint off today so we shall see what happens, I am not going to give up. Husbands driving licence arrived back today so we are hot footing it down to the new bank tommorow to get the new account hopefully opened.

[BankFodder]

Yeah it was very strange but the lady i spoke to from halifax compaints mentioned there could of been a change of circs with us and that they wouldnt know if this had happened. I asked her like what, and she came back with you could of lost your job or been divorced!! I couldnt believe it so i asked her if , on the offchance I may have been deivorced recently thrn they could then justify taking the OD away and she said maybe. I told her none of those things applied to me, and if anything, there is more money going through the account now than there ever has been. I have had my car hp since 2012 and no other credit recently other than the sofa i mentioned which isnt a fortune.

I honestly just cant fathom this out. I think the banks should be forced to give at least 6 months notice of the withdrawal intention to give you a fighting chance, thats all i am asking. Sent another complaint off today so we shall see what happens, I am not going to give up. Husbands driving licence arrived back today so we are hot footing it down to the new bank tommorow to get the new account hopefully opened.

Put all of this in writing and then send it to the bank and tell them that you had this conversation with them and that you find it unacceptable that they could be so casual about such an important issue.

 

Put everything in writing and send a copy to the bank EVERY TIME.

[infojunkie]

Well the bank overdraft saga is over, spoke to them today and had to reapply for my overdraft which thankfully was approved! Cant say im over the moon as been in bits for weeks about this, and quite unnecessarily as it now turns out. I had applied for a consolidation loan last week to pay my few bits of debt off including the OD but I was declined so I was feeling quite desperate. My new bank have accepted all our I.D documentation now so just waiting for our cards and details to come through so I will still be changing and I have definately learnt a valuable lesson that this debt needs to be given some priority this year.

 

Still dont know if my new bank are going to give me an overdraft to get it transferred over Halifax but we will cross that bridge when we come to it, for now Im just happy we are not going to starve to death til next payday! Thanks for your help BankFodder x