HBOS angers customers with new overdraft fee charges
December 4, 2009 by admin
Filed under News, News-Banking
The banking industry is already at the centre of heated controversy with the problems that it has been caught up in over the past couple of years, but one bank has now angered customers yet again with changes to its authorised overdraft charges.
Halifax Bank of Scotland recently announced that in place of the monthly interest charge that was applied to accountholders with authorised overdraft a new flat daily fee would be charged, costing between one and two pounds a day depending on the size of the overdraft.
Initially the bank had said that it would charge these new fees from 6th December even if the accountholder had only gone into the red by a penny. However, it has now stated that it will allow customers a £10 buffer, so they will not be charged anything for the first £10 that they go into the red but anything over the £10 will be charged at the one or two pound rates. Many customers are furious, as it will mean that they end up paying a lot more for their authorised borrowing.
An official from HBOS defended the charges, stating: “We will be giving customers with arranged overdrafts a £10 buffer zone to help those who slip into the red by a small amount. This is a way of helping customers manage their money rather than something they should rely on at all times.”
The charges will be one pounds a day for authorised overdrafts below £2500 and two pounds a day for authorised overdrafts of above this amount.
One worried and angry customer said: “I will now be charged £31 a month instead of the £10-£15 interest I was being charged before. This will take me over my arranged limit, and it will end up costing £150 a month. I cannot afford this. What am I supposed to do?”
I am on Jobseekers allowance.
Whilst unemployed i didn’t used to have any overdraft but an employment agency i did some temp work for last year paid me by cheque and at first i needed to get a £50 authorised overdraft for the first monies paid else i wouldn’t have been able to eat or get into the job in the next week after first being paid by cheque, i needed the overdraft until the cheque cleared.
But such as things have been, i’ve kept the overdraft facility and was regularly going around £10-20 over but no charges.
I went into the Hammersmith branch of Halifax in December and asked them about the changes after first hearing about the changes on “The One Show” BBC1, i discussed it and was advised to keep the buffer zone of the £50 as if i went a couple of pounds unauthorised overdrawn it would be crippling, i asked about the £10 buffer before the new £1 per day charges and the person didn’t seem to know about it.
But i checked and there’s references to this being the case, no charges to any customer for the first £10 overdrawn on authorised overdraft.
I’ve not gone over by more than a few pounds in the past couple of weeks, repaid by the benefit payments before any amount over £10 was overdrawn.
But now i’ve got 2 statements which are charging me £4 for 2 weeks ago and £4 for last week, which will be taken out on the 21st Jan and 31st Jan respectively.
But i’ve not gone over £10.
This is going to cripple me as my finances are so tight, i have made sacrifices in my diet etc in order to maintain an Internet connection and it may be a case of my having to isolate myself from my main interaction and jobseeking methods etc, because although it’s stated HBOS which includes Halifax, are charging me for going a few pounds overdrawn, when i have so little to start with.
Can anybody actually tell me if Halifax are supposed to allowing a buffer of the first £10 before £1 a day charges are incurred, as is being said is the case?
Because it isn’t the case with me, i intend going to see them on Monday and having it out on them.
Out of everybody in their customer demographic, to do this to people on the lowest state benefit, is despicable!