Halifax - Do not comply with The Banking Code.

[insomniac]

I received an emailed letter on my account as a future dated bill payment was scheduled to leave the account on 24th April.

 

There was insufficient funds in the account at the time, therefore the letter stated

 

"We haven't been able to pay the item(s) shown below because there wasn't enough money in your account.To cover our costs, we make a charge of £39 (maximum 3 charges per day) for any item we can't pay. We will take this money from your account seven days from the date of this letter. If this causes you to have an unauthorised overdraft, we will also charge you interest at the unauthorised rate and a monthly unauthorised overdraft fee of £28*. However, if your unauthorised overdraft is £30 or less the unauthorised overdraft charge will not be applied.We appreciate that nobody likes paying charges and we'd like to help you avoid them in future. We've provided an online banking service that allows you to view an up to date statement of your account, details of your standing orders and direct debits and much more. For full details of the service log on to http://www.halifax-online.co.uk.Should you wish to discuss your borrowing needs, you can make an appointment by visiting any branch.Where we haven't paid a cheque or standing order, please don't forget to make other arrangements for this payment. If the failed payment is a direct debit, you'll need to contact the collecting organisation to see when they'll try to collect the money again.Yours sincerely"

I then checked the banking code regulations http://www.bankingcode.co.uk/

 

and was suprised by section 5.5 which states that all Banks will give at least 14 days before the charges are deducted.

 

Now my account was debited on 1st May for the fee of £39, exactly 7 days after the offence and notification.

 

And Halifax even claim they subscribe to the Banking Code: http://www.halifax.co.uk/bankaccounts/impinfo.shtml

 

Can anyone let me know how I stand on this and if its possible to do anything to make the Halifax aware?

[Spiceskull]

Your analysis of the banking code is right insofar as they are meant to give 14 days notice before making a charge for a service. The fact that they have given notice implies that they provided a service - however, if you check section 5.4, it states

We will tell you the charge for any other service or product before we provide that service or product, and at any time you ask.

What they are trying to do is have their cake and eat it. If they are going to provide a service, they need to let you know about it in advance (presumably so that you can accept/decline/make other arrangements)

 

Whilst subscribing to the code is voluntary, the fact that they have subscribed brings them under the remit of the Banking Code Standards Board...who seem to bark rather than bite.

 

There are a few arguments in your claim/issue, and I have been weighing up a similar situation in my own account. My suggestion for now would be to proceed with your claim for a refund following the usual timetable and library templates. There are discussions going on about the code, and BCSB, and I am sure that once a strategy has been agreed upon people will be made aware of it.

 

Good luck.

[insomniac]

I have today sent my Preliminery letter, I was going to wait to see what my outcome with my other claim was first, but they are just annoying me now.

 

It may be only a £39 charge, but that seems irrelevant now, especially when I see them making there own rules up.

[insomniac]

Im getting my £39 back from the Halifax.

 

I sent the LBA and got a reply saying that Halifax believe their charges to be fair etc, but they would refund me on this occassion as a good will gesture.

 

I don't use the account that much, so to get the money back is a good victory and goes to show how good this site is, and also the letters can work without going through legal procedings.

 

I have to sign an agreement form saying I accept the refund and understand I will get no further refunds in the future. But as I don't plan on keeping the account for long I will sign it, take my money back and run.

[barracad]

Congratulations!

[Bovvered]

Excellent

[insomniac]

This topic was closed on 10 March 2019.

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