Halifail overdraft charges

Van Hellseek · 8 Dec 2009 at 17:59

From this month...

£1 charge per day for being within your agreed overdraft.

£5 per day for being over it.

Thankfully I'm not into my overdraft, but nonetheless... Disgusting. I imagine anyone who is will simply transfer their account to another bank without such charges (being almost all of them).

Anyone with a Halifax account here who's being stung by these new charges?

Edit: It's mainly the £1 per day I'm disgusted with. If it's within an agreed limit there should be no charges whatsoever.

Le_Petit_Lapin · 8 Dec 2009 at 18:19

£1 a day for being in your agreed overdraft? That's a joke!

russ0r · 8 Dec 2009 at 18:22

Have you got a source for this? Almost sounds unbelievable!

Nix · 8 Dec 2009 at 18:23

Le_Petit_Lapin said:
£1 a day for being in your agreed overdraft? That's a joke!

Just what I was thinking.

Is there a cap on how much they'll charge?

MrKnifey · 8 Dec 2009 at 18:23

Its true and im in my overdraft.. Oh joy. Soon as my overdraft is sorted im moving banks as its a pretty big joke.

Dunks · 8 Dec 2009 at 18:24

Bank of Scotland already offer accounts with similar charges for being in your agreed overdraft.

Tom0 · 8 Dec 2009 at 18:24

I'm closing my account soon because of it.

Van Hellseek · 8 Dec 2009 at 18:27

russ0r said:
Have you got a source for this? Almost sounds unbelievable!

From their online banking service...

We will charge you an unarranged overdraft fee of £5.00 at the end of any day in which you use an unarranged overdraft.
If you pay money into your account to bring it within your arranged overdraft limit, you will pay the following fees.
# An arranged overdraft fee of £1.00 at the end of any day in which you use an arranged overdraft of up to £2,500.00
# An arranged overdraft fee of £2.00 at the end of any day in which you use an arranged overdraft of over £2,500.00

Ahleckz · 8 Dec 2009 at 18:33

I've been out of my overdraft for about 2 months in the last 3 years! This would ruin me (even more than I am atm!)
Do hope RBS don't follow suit...

Van Hellseek · 8 Dec 2009 at 18:34

crankbro said:
Its true and im in my overdraft.. Oh joy. Soon as my overdraft is sorted im moving banks as its a pretty big joke.

I have some very important information for you... DONT WAIT UNTIL YOUR OVERDRAFT IS SORTED!

I was talking to people at Nationwide today. If you are with the Halifax and have an overdraft then you can transfer the account to Nationwide (even if it is in an overdraft) and there will be no charges.

Why wait and be charged? Just go into Nationwide and transfer it over.

MrKnifey · 8 Dec 2009 at 18:42

Thanks for the advice seek, shall look into it

lambda · 8 Dec 2009 at 18:55

seek said:
I have some very important information for you... DONT WAIT UNTIL YOUR OVERDRAFT IS SORTED!

I was talking to people at Nationwide today. If you are with the Halifax and have an overdraft then you can transfer the account to Nationwide (even if it is in an overdraft) and there will be no charges.

Why wait and be charged? Just go into Nationwide and transfer it over.

I moved a while ago...

Halifax is going to lose a lot of business because of this. I suspect they don't mind, because they will retain the "good" customers, and all the others will switch to a more o/d friendly bank.

KnightStalker · 8 Dec 2009 at 19:04

thanks for the headsup, i just checked my account and i was charged 22 quid for being within my agree'd overdraft last month, only reason i went into was for christmas stuff, which unfortunatly ill end up doing this month, thing is, whats the point in the overdraft now, it was a saftey barrier or used for short months without the risk of getting a stupid charge slapped onto next month, now the benifits of that has gone, i know its £1 a day, but when you get paid monthly those days mount up

Bevysters · 8 Dec 2009 at 19:25

Probably going to sound like a tube but how easy is it to change bank and what banks are the best at the moment im in the plus so could change bank i guess.

Raumarik · 8 Dec 2009 at 19:26

I don't see the problem, our Santander account has a 50p/day charge for using our overdraft, we only use it if we need it though. It all boils down to people learning to budget.

Swordfish · 8 Dec 2009 at 19:29

When I read posts such as these I'm glad that I never use an overdraft facility anymore.

Dogoid · 8 Dec 2009 at 19:35

its true , i am with halifax and use the overdraft a lot. for people who are always in thier overdraft , there is a way around this.

there are 4 types of accounts

*student current

*current account

*reward current account

*ultimate reward current account

its the ultimate reward current account that offers 300 quid overdraft ( fee free ) for 12 quid a month charge for this service. this account has more benefits but for the people worried they are going to be charged around 30 quid a month for being overdrawn in a current account, moving to this account would reduce that amount to 12quid .

Van Hellseek · 8 Dec 2009 at 19:37

Dogoid said:
moving to this account would reduce that amount to 12quid .

Or switch to a bank that doesnt charge, and reduce the amount to £0.

v0n · 8 Dec 2009 at 19:38

This was predictable. This is what happens when court removes power from watchdog. Since OFT cannot now question such charges Halifax was the first scoundrel to try what would happen if they tried to change overdraft into usury. £150 a month til you get your statement through post for going few pence below 0 if you don't have an overdraft arranged? Mother ef. That is out of order.

Dogoid · 8 Dec 2009 at 19:40

seek said:
Or switch to a bank that doesnt charge, and reduce the amount to £0.

you cant move if your always overdrawn and find it hard to balance out. this is for people who are stuck in the red all the time and want to minimize the penalty.

its either pound a day or 12 quid a month to move to a specialized account.