The Accidental Smallholder Forum
Community => Coffee Lounge => Topic started by: smiffy on October 16, 2009, 09:48:12 pm
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I have been banking with the Halifax for over 20 years and have an overdraft facility that i use as an emergency loan facility.
However ......
I have just recieved a letter from the Halifax bank that gives a little XTRA, NOT!!!!
they are changing their current account they will no longer pay intrest or charge intrest on the current account, intead they have brought out a new system, for every day you are overdrawn upto £2500 then you will be charged £1 per day!!
I rang the telephone banking to clarify, as I rarely check my account as i know aprox what i have in it. and in theory if I am 1p overdrawn i will be charged £1 per day for using the facility. What a bloody rip off, even loan sharks aint that expensive.
I thanked the lady for the clarity and TOLD HER THAT I WOULD BE CHANGING BANKS.
I dont know what else to do other than vote with my feet and walk to another bank. It is a complete scandal, with people strapped for cash many are using their overdrafts to see them through. we are fortunate and mine was for just incase, however at that rate i cant afford to be overdrawn!!!!
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Well done Smiffy - not enough of us vote with our feet.
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I've done exactly that on a previous occasion. well done Smiffy!
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friend of mine is with HBOS and they were told the same - although i'm sure it was £2 per day
he is regualrly overdrawn, but the charges go from about £8 a month to £60 a month - so he's changed banks as well
i do love these short sighted institutes. I blame the internet for raising consumer awareness! I guess that is the downside of consumer choice for these companies - we will no longer put up with their s**t!
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I was told the same thing today about HBOS. The worry is that all banks will go the same way. RBSG is changing their charging system, reducing them. I hope they're not going to introduce this as well.
Beth
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I think, halifax and HBOS are the same.
The charges are £1 per day if your arranged overdraft is less than £2500
£2 per day if your arranged overdraft is over £2500
£5 per day over your arranged overdraft
This is to make it simpler and easier to work out your overdraft charges per month
however its the most expensive overdraft i have ever heard of!!!
what is sickening at a time when many people are in finacial crisis and taking in to account HBOS were bailed out by the government, that they are allowed to do this.
If all current account customers leave the bank they will fold, the danger is too many people cant afford to leave as they cant afford to pay off their overdrafts, The banks are just bleeding the country dry. Dirt rip off Ba****ds >:( >:( >:( >:(
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funnily enough, as i was talking to a bank manager today, i did ask him how he enjoyed being a civil servant!!!!
i really shouldn't poke the bear when i'm asking him for money though!!
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lol sellickbhoy :)
well i have emailed watchdog, dont know if it will do any good, lets hope enough bad publicity and a bit of the anne robinson treatment will make them have a change of heart..... mind you do bankers have a heart ???
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For once I actually have to defend the bank on this one :o
I'm with HBOS and have a BIG overdraft ! And generally pay £150 in intrest charges each month.
However, I got a charge of £35 for going £1.20 overdrawn (boss was late putting my maternity allowance in, tut tut) So I phoned them to ask if there was any way to cancel the charge as it seemed a bit (a lot) excessive. As someone who deals with the public on a regular basis I know that kicking up a fuss, shouting and generally being hostile gets you nowhere - so I was really nice (as always ;))
The girl I spoke to was lovely, she checked my account, saw that I never usually have overdrawn charges (apart from my overdraft) and agreed to refund the charge - great, job done. THEN she told me about the reward account (the one smiffy is talking about) and explained that instead of paying £150 per month in intrest it would only cost a maximum of £64 per month and there are NO CHARGES for unpaid items etc. I was very happy, because she didn't have to go out of her way do this and I'd like to think it's because I did remain calm and pleasent. (or maybe she was on commission ?)
I appreciate that for people with small overdrafts and no charges it may work out a more expensive way of banking, but for me, it works out much bettercheaper.
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Been thinking about this! An overdraft is a loan from a Bank to an individual - it is the Bank's money, not the individuals money. The bank is surely entitled to recompense for lending that money? If an overdraft level is agreed and the individual goes over that level without asking the Bank first surely that is stealing and the Bank is also entitled to charge more for that or withdraw the overdraft completely?
For instance. If I say to Karen 'You said you have a few bills to pay so you can use £500 of the cash I have saved that is in the box in my kitchen. There is £1000 there and if you use all the £500 you must pay it back with a little bit extra which we will agree on as £5. I need the other £500 for my own bills' Karen says 'yes, that's great thanks' Then she takes £600 instead of £500 so I say 'Ok, you've taken £100 more than we agreed so you can either give me £20 extra or I will take the £605 all back immediately'
Yes, I'm playing devil's advocate - but think about it.
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Oh I agree Annie- an overdraft is the bank's money. And I think a lot of people don't realise that your bank can at any time say we want our money back- now! And they are perfectly intitled to do so.
Beth
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I am with the Halifax and I once went overdrawn as a result of a mistake in wring the ammount for a cheque which made me overdrawn and suffered £9 in charges. It was the first time I had ever been overdrawn in my life and I rang the bank and must have got a decent staff member who cancelled the charges. As some of the others have said, most banks will be doing the same now.
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Things always work in a bank's favour, though. When you transfer funds they don't appear on the other account for days and alhtough it is not the bank's money- it is either yours or the other persons'- they play with it for a while - although today's technology should make transfers immediate. I know, I know , they provide the service of transferring it and that's the way the charge for it, but still. It does work in their favour and if they mess it up we all pay. :&>
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I transferred money on Wednesday evening to my dog sitter and it changed banks immediately. She sent me a text half an hour after I'd done it to say she'd got it.
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Pleased to hear that, Annie! Who are you with now? :) :&>
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Hmmm, banks a necessary evil. HOWEVER, I don't think they should be allowed to change the rules of the game midway through!
1st off, the banks make money from overdrafts.
Overdraft rates are generally higher than personal loan rates, they are shorter term and can be immediately repayable if the bank wants to. It really is for short term borrowing and if you need to have a large overdraft every month, i think you should look at another way of financing your debts (sorry, lecture over)
But if the bank agrees to give you an overdraft facility of £1000, and agrees an interest rate of x% - then that should remain in force for teh term of the overdraft agreement
if that overdraft was costing you £10-15 a month, then suddenly being told it will now cost you £30 or £60 a month is a bit of a change in the rules.
IMO, the bank should give you a notice period to clear your overdraft and get back in credit and THEN apply the new rules.
Hammering people who rely on heavy overdrafts or who are regularly overdrawn won't improve their situation by having larger bank charges - there should be a duty of care by the bank to offer more cost effective solutions to customers to borrow the necessary money.