having had credit card problem with halifax , i rceived a letter from them wednesday stating they would be withdrawing my 3000 overdraft within next two weeks . asking me to call them to discuss. i did so and was told my bank account isnt in arrears so there is nothing to discuss. i explained if they are just gonna withdraw it then it will mean when my wages are paid in i would have them all swallowed and id have £0 for the following month . they said dont worry once it is removed they would discuss and sort some sort of repayment. left it at that then tonight i checked my online accounts to see on the 20th £300 was removed from my savings account. calling halifax they said it was transfered to the credit card people. i asked why they didnt notify me , the man couldnt answer.

it seems they have no intention of helping, only will take anything that goes in the account. does anyone have any advice on how to handle this. or similar experience.

bernie007:

it seems they have no intention of helping, only will take anything that goes in the account.

This is "set off" at work. More info here....

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40.pdf

The first thing to do is to open a basic bank account at another bank and transfer as much of your banking to it. If Halifax have already withdrawn your £3000 there is nothing to stop you transferring your wages as well.

Read the article and make sure Halifax have complied with what little small print there is about this practice.

For others reading this what are the lessons? Don't save with an organisation you are or could be in debt with. Try to have a credit card from an organisation you have no other banking arrangements with.

Recognise that an overdraft (unlike a loan) is repayable on demand. In particular it is very difficult to move wages from an account in overdraft because the likely consequence is withdrawal of the overdraft. Get any savings out first.