First step to victory ? (HBOS drops default charges)

[Stornoway]

BBC NEWS | Business | HBOS to change most bank accounts

[Stornoway]

Simplicity lies at the heart of a unique new current account, to be launched next year. It is expected to be the clearest and most transparent account on the market.


New Reward account
Credit interest will be replaced by net cash payments of £5 a month when accounts are funded with £1,000 or more, regardless of their debit or credit balance.


Existing arranged and unarranged overdraft fees and interest rates will be replaced with a daily fee.


Unlike other offerings on the market, the Reward Current Account has no catches in order to qualify for the £5 net monthly payment.

Traditional unarranged overdraft fees will be removed. No debit interest or monthly unarranged overdraft charges will be applied.

Customers using an arranged overdraft of up to £2,500 will be charged £1 per day for each day they use their overdraft. For those using an arranged overdraft of over £2,500 a charge of £2 per day will be applied for each day they use their overdraft. Customers who use an unarranged overdraft will be charged £5 for each day they use it.

It is intended that all Halifax and Bank of Scotland accounts will move to a daily overdraft charging structure like this during 2009. In the interim, customers can continue to use their existing accounts as normal.

All customers will be able to move to the new account from 8 February.

[sillygirl1]

I've got an Easycash account with Halifax, wonder if they will try to make me move to the 'new' account.

[Mr lex]

Customers who use an unarranged overdraft will be charged £5 for each day they use it.

This is starting to sound like Barclays new charging system.

Lets see 7x5=£35 per week
4x35=£140 per month

You can see where this is going !!

Lex

[Stornoway]

Whilst not perfect I do think a max of £140 a month is a helluva lot better than the £90 a day (for 3 unauthorised payments) + £28 monthly charge that is in place at the moment with Halifax.

Most people who slip overdrawn by mistake do so for a couple of days or a week at most.

I personlly think this is a great step in the right direction.

[bish]

What if you go 10p unautharised overdrawn for 10 days, thats £50. No way is that fair, charge interest on the overdrawn amount, at the current Bank of England rate, thats fair. They run their business on profit from interest. As is the common theme on this site, they can not profit from breach of contract, they can only be reasonably compensated for your breach of contract. Just another example of scaming by simple scamers.

Oh yes the bank of england rate is not so good at the moment, so no profit, have to take the rough with the smooth, have not seen them feeling sorry for us when the interest rate has been beyond belief in the past, pay back time Banksters.