sons halifax Bank Account. Charges Help

[HelpfullFriend]

Hi

Just wondering if anyone can help me sort out my sons Halifax Bank Account.

 

 

He has only had this account for about 8-9 months.

Applied on line and didnt take the overdraft option as he doesnt want to be using any overdraft facilities.

 

Account has obviously gone overdrawn once or twice and as he doesnt have his wages paid into it

has paid charges in the past which have cost him £6 per day.

 

Doesnt have any paper statements. Only had a debit card - no credit card.

 

He was recently sent a letter to say his account was overdrawn by £120.

He has had the telling off for not checking the account sooner.

 

 

I wrote to the Halifax on his behalf apologising for this error and asked for a breakdown of the overdraft.

All we have received is another letter advising this is now overdrawn by £240.

 

The collections department are now asking him for this payment

but I think any payment he makes is wiped out by further charges being added.

 

 

They are adding £42 per week in charges,

so if he were to pay £50 a week he would only be clearing £8 per week off the overdraft.

Is it ethical or legal for bank charges to be added in this way?

 

He doesnt earn enough to pay all this off in one sum

and his partner doesnt work as their baby is due in 6 weeks.

 

Would anyone know how I can aproach this for him

to see if we can sort this out to reduce the stress before the baby comes.

For obvious reasons, he will have less disposable income then.

 

Thanks for any help anyone can offer.

(My son is 20 years old).

[dx100uk]

http://www.consumeractiongroup.co.uk/forum/showthread.php?403963-Help-with-Halifax-overdraft-and-it-s-fees-please-**WON-bcobs-**

[AndyOrch]

If he opted for no overdraft facility...then in reality this kind of punitive charging is not suppose to be able to occur....and judging from his age he would not be offered any overdraft facility.

 

If his wages are not paid into this account..what exactly is it for ?

 

Regards

 

Andy

[citizenB]

http://www.consumeractiongroup.co.uk/forum/showthread.php?458558-Nine-UK-banks-launch-fee-free-accounts

 

Might be an idea for your Son to change to one of fee free accounts - these are basic accounts which WONT let you go overdrawn.

[AndyOrch]

From the sounds of it CB so should the one in question....not allow you.

[citizenB]

I am a little puzzled - there is no salary going into the account - how is the account being funded ?

 

And, how has it become overdrawn - are there standing orders/direct debits ?

[HelpfullFriend]

Sorry didnt realise there were unaswered questions on this.

 

My son had an account with the Nat West originally but had so much trouble with them

(allowing a third party to empty the account/

700 attempts to take money from his account/

only noticing it when I complained).

 

He had to have his wage paid into my 'spare' bank account.

 

I opened his account to enable him to have his wages paid in.

He said he didnt want an overdraft,

I clicked the box that said 'no'.

 

 

As his D/D's are set up from my account,

I just used to transfer the remainer of his wage in for him to use.

That is how he used the account - no problem.

 

Looking at the statements,

used his card at McDonalds and then drew cash out.

He seems to think that the McDonalds transaction hadnt gone out when he took the cash,

therfore he went overdrawn without realising it.

 

 

Original overdraft amount was under £10.

As he then didnt use the account for a few weeks

(a flurry of baby shopping with cash)

the charges started hitting and then gout out of control.

 

 

Didnt realise he was overdrawn as he doesnt have an overdraft on the account.

 

The last letter he has received advises they are closing the account

and passing it over to collections and now stands at nearly £400.

 

Am I right in thinking that if you tick a box to say you dont want an overdraft

- you shouldnt be able to go overdrawn?

 

 

Or is the cop out in the statement that says we will charge you £6 per day, every day

if you do go into the overdraft you never wanted in the first place.

[AndyOrch]

Let them pass it to collections...simple to defend should they instigate a claim.

 

Andy

[KSmith82]

Am I right in thinking that if you tick a box to say you dont want an overdraft

- you shouldnt be able to go overdrawn?

 

No. You just didn't apply for a planned overdraft. Any current account can go overdrawn (into an unplanned overdraft).

 

Looking at the statements,

used his card at McDonalds and then drew cash out.

He seems to think that the McDonalds transaction hadnt gone out when he took the cash,

therfore he went overdrawn without realising it.

 

This is probably true.

When using your card, sometimes small transactions are automatically approved straight away without checking with the bank first. The shop then processes the transaction a couple of days later. Until then the bank has no idea of the transaction even occurred.

 

However, it would be your sons responsibility to monitor his spending and account balance.

[HelpfullFriend]

my son cannot be held responsible for a delay in the transactions hitting his account.

I also bank with the Halifax and have no overdraft facility.

If I dont have the available funds in my account, my card is declined.

 

I will wait for the letter from collections and take advice from the Financial Conduct Authority.

They were fantastic when he had all that trouble with the Nat West. Thanks