Halifax Bank



Halifax charges overdraft rates of above three million percent!

Although Halifax have used some clever verbal trickology to try and hide what theyíre doing, a look at their website says it all. Some people are paying over three million percent interest on their overdrafts.

For agreed overdrafts of up to £2,500 Halifax charges a flat fee of £1 per day. But what nobody is told is that that computes to a rate of 14% for those who borrow the full £2,500.

Anyone with an overdraft of £1,250 will pay a rate of 28%

If someone only wants a small overdraft of, shall we say, £100, the rate Halifax will charge them is 365%

But, only overdrawing by a single pound means Halifax will charge an astronomical interest rate of 36,500%. Thatís right, THIRTY SIX THOUSAND FIVE HUNDRED percent. Thatís an awful lot more than even Mafia loan sharks will charge.

But, whereas our government would, with a lot of huffing and puffing, jail a Mafia loan shark for charging those kinds of interest rates, it pats the Halifax executives on the back and tells them they are doing a wonderful job.

However, the criminality of our modern banks doesnít stop there. Someone with an accidental 10p overdraft will be charged an interest rate over three hundred thousand percent while someone who inadvertentely only overdraws by one penny will be forced to pay an interest rate of three million, six hundred and fifty thousand percent.

Mind you, if you have an account with the Halifax and an agreed overdraft limit, you could enter the Guinness book of Records if you overdrew your account by one penny. Then you might contact a no-win no-fee lawyer to see if you have a case against the bank.

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Was tempted to removed this post because a look at the Halifax website caused me to think that there is no overdraft fee for the first £300. However, a closer look told me that this fee-free overdraft only applies to people who are wealthy enought to deposit £1,000 per month into their account. People who are not wealthy enough to deposit £1,000 per month, if they are not very careful, could find themselves paying the three million plus percent on a tiny overdraft of only 1p. To be honest, I don't know whether to laugh or cry.)

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ALSO: This is surely a scoop for the blogosphere! The Sun, The Daily Mirror or The Daily Mail would have loved to headline a story like this, but the Halifax bank advertises in their papers so journalists there are probably not allowed to say anything.

---February 28, 2010---

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