Mumsnet Talk

I haven't yet managed to pay back the £1000 overdraft I had from Uni. Now I've just had my second child and can't go back to work yet.

I can't afford £30 a month, it's ridiculous.

Does nobody mind about this?

Phnoe and tell them then! They are just trying it on. Or go to Moneysavingexpert website for advice on what to do next.

It is indeed ridiculous!

Vote with your feet and change bank.

It is shite, they've done it to us but we were lucky in the fact that they gave us enough time to work ourselves out of the overdraft and use the credit card. I'd probably change banks in your situation.

There was a long Halifax related thread on this - featuring lots of strong language! Someone suggested you might be able to move bank, even if you still have an overdraft. Would be worth looking in to. We spent Friday morning in Co-op bank setting in motion the movement of 9 accounts away from HBOS.

Have you been charged yet? You should have received at least one letter about the changes they are making to their accounts (I receive at least 2 letters a week from them, regarding various issues, even though Im set up for paper free banking!)

You can definately move banks with an overdraft (indeed, it may have been me on that thread - Ive certainly mentioned it somewhere on MN). I think I read that A+L will match your overdraft, but for £1k overdraft, I dont think it would be an issue with most banks.

Check out all the deals you can get too that may help to reduce your overdraft, as well as 0%. (Direct with the bank, cashback sites esp quidco - I got £175 when I opened my A+L account a few years ago. You can get £145 now if you are clever about it!)

I have had this letter and am appauled, both me and dp have accounts with hbos and like most families are over drawn at the ened of the month, so this means we are both getting charged. I rang them up and they said but they have abolished all other charges if you go over your overdraft, I explained that i have never gone over my overdraft so therefore they are penalising their best customers in one respect.

I will be showing my concern by moving banks

Yes definitely move banks - I spoke ot A&L and they were happy to accept us with an overdraft. They were very good on the phone, worth giving them a ring

I only use the overdraft as a buffer on our account but money is so tight I cannot pay out to fund whatever the hell they are doing with this theft revenue raising tactic. I too will be swapping banks. My personal account is with the Coop. Looks like they will get the household business too. Thank god my ex-student account is not with them.

Yes I got this and think they are bar stewards too. I now have no incentive to pay back my £1000 overdraft by a hundred or so each month - I may as well be £2500 overdrawn and pay the same fees!

I got this today and have rung them and told them I think it's an apalling and unfair decision. An overdraft is not an ideal way to borrow money but for the whole of of my adult life I have been able to have an overdraft and pay interest each month on that balance - fair enough. Now Halifax are proposing to charge me up to £31 per month for having exactly the same overdraft - whether it's £1 or £100. They are absolutely within their rights to do it I accept - and I am absolutely within my rights to do what I plan to do which is to close the account.

I got the impression the poor lass on the other end of the phone agreed with me...

isn't it because the banks are about to told that their fees for borrowing have got to be much clearer. idea being customers can understand a fixed fee ie £1 a day, better than a % rate. halifax are just jumping the gun before being told. then the other banks will follow with something similar

Yes I understand that fee very well - it's about £28 per month more than I pay now!

I'd go with one of the building societies because I don't think they will follow suit as they have no shareholders to pay out.

I've just done a bit of googling and the court case was about unarranged overdraft fees not arranged ones but the consensus seems to be that they will get their wrists slapped over the former and so will make up for money lost there by bumping up the latter.

I just got my letter today too from Halifax. can't believe it. My overdraft is "only" £400 but still need to pay it back have no idea where to get it from as can't afford another £30 a month atm either

So does this mean that if you go overdrawn you won't get charged the £35 'admin' charge?

Me too. I have been running a £1000 overdraft for years due to extended mat leave then going part time. I nearly fainted when I opened the letter. Am planning to put it on my credit card and move banks. I have been with them for 20 years, since my student days and they have made a LOT of money from me in that time. Doesn't make sense

Mamadiva, if you go into an unarranged overdraft they are going to charge £5 per day.

Prosecco - I have been with them since birth as my grandmother opened a savings account with Halifax then. I agree it doesn't make sense. I don't mind paying interest on money loaned - that's how things work - but this is just greedy. Mamadiva - no I don't think they will charge that but if you have an unauthorised overdraft it's £5 per day for being over - whatever the amount. So if you are over your limit for say 8 or 9 days before you notice or act it will actually have cost you £40 or £45...

My overdraft is arranged so being in it all month costs me about £4/£5 atm.

I have never not worked in my life up until having DS and find it extremely difiicult not bringing money in. It just wouldn't pay for me to work atm, as would all go on childcare so I HATE telling DH about these things. he does know of course, I just feel such a bloody burden and even though he doesn't see it like that I can't at the minute help how I feel. He is away at the minute and am dreading telling him I got the letter for my account. he is so nice, don't get me wrong, but, bum. he worries about money as it is, because he likes to be on top and at the minute we are a little bit behind than normal so just feel i am adding to it all.

Sorry for the rant, in the grand scheme of things it is £400 and not the end of the world, but because I don't bring any money in I feel like shit. (sorry no one to talk to about it)

The other thread was in Chat and was called Cunting Halifax or similar.

Move accounts. Abbey, A&L (same company) and First Direct will all match your overdraft.

Don't stick it on the credit card, your card co with charge you a hefty transfer fee - and there really is no need to when you can switch your account and get your new bank to tell all your direct debits and standing order people and even your employer in addition to matching your overdraft.

Can I change accounts, even though I don't have a job (SAHM)? I have had this account for about 17 years

Yes you should be able to as long as your credit check comes back ok. You will have some income whether it be tax credits, child benefit of a stipend from DH/DP.

You should tell them that when you apply and give your occupation as homemaker (because that will come up on their list of occupations and save you a world of time).

Make sure you have a full 3 years worth of address history including postcodes and that you have a landline as your main phone number as that helps give you a better credit score.

They will also ask what other credit you have, ie store cards, credit cards etc. They are not interested on what's on them (unless they sniff out an opportunity to sell you a loan ) just that you have credit.

They may want to see a recent bank statement to match your overdraft (ie prove you have £XXX overdraft already) and that will be it.

If you had poor credit then you will struggle to open a new account.