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Lying banks!
Former Member
Posts: 1,876,323 The Mix Honorary Guru
So went into Halifax today, some of you may or may not know they advertise £2,750 interest free overdraft for students. They don't give this out though. I asked when I set up my account, they said I had to do it in branch. Went into the branch, she said it was only for first years! Read out the T&C to me and all it said was a minimum income of £400. She had to take down what I wanted to extend my overdraft for, when I was going to pay it back, HOW I was going to pay it back, etc. etc. And then said I shouldn't bother applying for £2,750 as it was highly, highly unlikely that I would be awarded it. So I put £2,000 on the form. I think she could tell she was close to losing my custom when I referenced several times that it was why I went with Halifax, to which she says 'Oh, well I can try by filling in this form...'.
THEN she said, with an income like mine (relatively high), she said they would ask WHY I needed an overdraft, but surely if it was a low income they would say I couldn't pay it back?
Thing is, if there was a form to fill in, why wasn't she transparent with me from the beginning? It says the condition is you earn £400 a quarter, which I exceed by quite a long way, and I just feel like she was trying to put me off. I said I wanted it for a car, which is partly true, but I have savings but would like to keep that in a high interest thing. I told her that I had a savings account as well. So there's no real risk for the bank of their money disappearing, if I'm not a perfect case for the maximum amount (it says absolutely nowhere that it's exclusive to 3rd years - I pointed out that barclays say what you will receive each and every year, but they just say 2,750) then who is really?
Having said that, if I'm not awarded it, I might just go back to Barclays, they've not screwed me about before.
I was just amazed at her audacity to say 'it's impossible for you to get it as you're a first year', then a minute later say 'well, you can fill out a form for up to £2,750, but you have to prove why you should have it', went through the form with me and there was no reference to what year of study I was in.
It even says on their website: "Up to £2,750 interest free overdraft in your first year**
**Subject to status and credit checks."
I feel a bit ripped off now, I wanted the full amount ideally, if only to plug a bit extra into my savings account (and seeing as an interest free overdraft facility is advertised with the account, I hardly see it as fraud). I feel like making a complaint for being lied to, it's my money really and if the bank is marketing it one way, they cant have people in the shop telling students otherwise.
I reckon it's probably too late to phone up and 'up' it to £2,750, but if they ask, I could always complain. :mad: Rant over.
THEN she said, with an income like mine (relatively high), she said they would ask WHY I needed an overdraft, but surely if it was a low income they would say I couldn't pay it back?
Thing is, if there was a form to fill in, why wasn't she transparent with me from the beginning? It says the condition is you earn £400 a quarter, which I exceed by quite a long way, and I just feel like she was trying to put me off. I said I wanted it for a car, which is partly true, but I have savings but would like to keep that in a high interest thing. I told her that I had a savings account as well. So there's no real risk for the bank of their money disappearing, if I'm not a perfect case for the maximum amount (it says absolutely nowhere that it's exclusive to 3rd years - I pointed out that barclays say what you will receive each and every year, but they just say 2,750) then who is really?
Having said that, if I'm not awarded it, I might just go back to Barclays, they've not screwed me about before.
I was just amazed at her audacity to say 'it's impossible for you to get it as you're a first year', then a minute later say 'well, you can fill out a form for up to £2,750, but you have to prove why you should have it', went through the form with me and there was no reference to what year of study I was in.
It even says on their website: "Up to £2,750 interest free overdraft in your first year**
**Subject to status and credit checks."
I feel a bit ripped off now, I wanted the full amount ideally, if only to plug a bit extra into my savings account (and seeing as an interest free overdraft facility is advertised with the account, I hardly see it as fraud). I feel like making a complaint for being lied to, it's my money really and if the bank is marketing it one way, they cant have people in the shop telling students otherwise.
I reckon it's probably too late to phone up and 'up' it to £2,750, but if they ask, I could always complain. :mad: Rant over.
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Comments
with the amount of debt many people are in, I dont think this is such a bad thing.
The kind of person they want to give that to is someone that is going to keep it until after the graduate and then start slowly paying it back (note that I said after they graduate, at which point it will no longer be free). That's when theys start making money out of students.
From their point of view you're a rubbish prospect, you're evidently going to pay it back before it costs you anything.
I think it's wrong for them to lie to their customers though. I have enough in my savings now to wipe out my current overdraft and then some, but by using my overdraft in this way, over three years of study I could get around £400. And nowhere have I read that this is fraud or unethical, it's simply taking a facility the bank offers to elligible customers (being a student with a high income I would have assumed I would be one) and I'm just taking advantage of it. Like people who get a credit card for 6 months and buy stuff on it, then transfer the credit over to another one, and another, so you end up paying nothing to the actual bank - you're not ripping them off, they offered you the card and you're just being a bit clever so you don't have to pay as much back.
Fiend - I understand what you mean about me being a rubbish prospect, but being lied to? Makes me feel angry. Customer service should always be honest with the customer, but when it's a bank who need to be trusted 110%, it's almost shocking. I say almost, because all banks are out to make money and will serve their own interests, but I never thought they'd say 'we can't offer this to you' without checking any of my details out, based on the fact that I will be making money out of them and not the other way around.
No worries.
Girl put Your records on, tell Me Your favourite song.
Hahahahahahaha!!!!
Is it a monster??
I suspect she said they can't offer you that because she knew you wouldn't get it.
You're a rubbish prospect, they's probably give it to a good one, who would be a finalist who won't be able to pay it back til they get a proper job.
There's nothing wrong with what you want to do, but banks are starting to see through it.
Yes, scary monster
And to the actual scary monster -
If they refuse me, that's fine, I wouldn't be so annoyed, maybe a little dissappointed. But to her to actually say something to me that is not what is said when they advertise their account is really really annoying. Makes me angry even.
I'm tempted to switch back to Barclays, they've never been incredible with their rates / overdraft and extras, but I was with them since I was 7 or so, and all my family has a Barclays account or Barclays premium accounts of some sort, and they are *so* cooperative, it's like they actually want to help you, not get you to do what they want. It's my money and my loan afterall!
Interest-free overdrafts act as a sweetener to get profitable customers in through the door, and if your banking habits point to you being unprofitable then they won't lend to you. I'm an unprofitable customer for my bank (I always claim overdraft penalties back, and win) and so my bank has decided that the maximum I can borrow from them is 2p.
Complain if you like, but Barclays have always been bloody useless for my household. Different people like different banks.
If that is what it said on their website and then they don't do that then yes, it is false advertisement, which you can take them to court for.
Obviously they know that many students are not in the position to take them to court so they can get away with it. The Hypocritical nature of the Beaureaucrats. Bleeding Swines!
Might open a second student account :chin:
"I am pleased to tell you that your recent application for an overdraft of £1,750 has been successful"
I think she just tried to rip me off that little bit more
I'm the first to criticise the banks but they aren't a charity. They're lending you £1,750 at a loss, so quit the whining.
And I don't think I should have to 'quit the whining' because the bank is offering a service. They have my money that they use to lend to people, I've agreed to pay all of my loans / bursaries into that account. If they saw my application for £2,750, and then deemed I wasn't a suitable applicant - that's fine.
But so far I am thinking it was the lady in the bank (who I have no personal issue with, she was very friendly), who first lied to me by saying only third years would receive that amount - perhaps out of ignorance or not, and now the letter is worded in such a way that it has led me to believe she might have applied for less (she filled out the form on the computer, I just answered her questions about what it was for etc. etc.).
It might just be a generic letter and I'm misinterpreting it, but I hope you can see what I mean.
As for ripping me off, well, it's unfair that we enter into a contract of sorts, they can have my money if they provide financial services subject to status and credit checks, and then seemingly I'm not elligble to the financial services regardless of my financial status because I'm not a third year. Except the application went through fine. So maybe I was fed misinformation, at the very least what I was told in the bank wasn't the same as what is published online.
It may be to the banks loss that they are lending me money, but I don't think that makes a huge difference, because if I'm not being treated fairly by the bank, then it's still an issue. It's not a complete loss, because they have all my custom, as they have also placed a restriction on using other banks.
I could have entered into an agreement with another bank instead, and too would be obligated to provide financial services subject to status.
fwiw, someone on the the moneysavingexpert.co.uk was told that the only criteria was that you had a minimum of £400 per quarter, and then you'd be elligible for the full amount. And after explaining this to the bank, they were given the full amount immediately.
They don't HAVE to give you ANYTHING seeing as they will be operating at a loss, effectively.
but I'm not convinced they did. I know I was told I would not be elligible for the full £2,750 so shouldn't apply for it as I was a first year, however:
Whilst I understand fully that this doesn't mean that I'm garunteed, I wanted to apply for it as per their application process, but didn't because I was told only final years would receive it.
Then I said £2,000 then, and she typed it on her computer.
However, she told me that applying for a high amount and not being accepted, would mean I would have to re-apply. So it seems a bit suspect that I applied for £2,000 (as far as I know) and received £1,750.
I wouldn't mind, if I had applied, and they said that was the maximum they were prepared to give based on my circumstances etc. but as I said, I think at the first level, talking with the lady in the bank, that I was given misinformation.
Whether by mistake, or on purpose, I think anyone would find it difficult to trust someone with all their money when they have been given false information. The letter I received explitly says:
"your recent application for an overdraft of £1,750"
Which is incorrrect as well. Unless they're just being sparse on words, and didn't say "your application for an overdraft of £2,000 unfortunately was not accepted, however we are prepared to offer you an overdraft of £1,750".
It is not the amount that bothers me - that should more than suffice until I get a job for the summer, but the principle that the process is not transparent, I'm not sure why I wasn't given £2,750, or £2,000, I'm not sure if on record they have it that I applied for £1,750 or not. Normally I'm not too suspicious of banks, but it was the first instance when I was told something which I have posted evidence against, that made me think what else aren't they telling me that's true, because it doesn't seem to add up.
Unless of course, they've just put it through without telling me, which is possible, but a bit of correspondence would be nice.
eta:
also, would it be 'false advertising' if they said 'up to £50,000' but the most they gave anyone was £1,000? Because they're not lying as such. That's another point to consider.
Basically the 'up to' is just the bank's way of quoting an attractive-sounding figure that they don't have to guarantee to give anyone. Like when car adverts say 'from £6995', when the model shown in the advert is actually twice as much. Its all about the wording.
You haven't been conned. This is the way banks work.
ETA: note it also says 'subject to status'. Your status is not good business for the bank.
Lol
Yea, I just wish I was more aware of what was going on with my money. She says one thing, then another, then the offices / admin say something else, and I'm not sure whats happened where.
Suppose there's nothing left to do but spend it :yippe:
I bet barclays would give me a big overdraft, they charged me £120 when I went under £0 (i foolishly assumed my card wouldnt work if I had nothing) and made 4 very small transactions, <£5 each. Got charged £30 on top. I spoke to them and out of 'goodwill' they gave me half back. But at least when I want to talk to them on the phone I can, and whn they say something it is what they mean, rather than hearing lots of different stories.
If you don't like the bank's service, then switch banking provider. Barclay's gave you half the illegal charges back out of "goodwill", and you think that's good service? I despair.
They can charge you something for going over your agreed overdraft, just not anywhere near as much as they used to.
The law says otherwise.
It may be different when the OFT rules on bank charges, but they haven't done yet, which means that the banks can only charge what it costs them to administer the unauthorised overdraft. Which most sources, when being generous, reckon is about £2.
The cost of the lending is recouped through the high interest rate levied on unauthorised overdrafts.
I didnt know that, although to be honest I've never really had any issue with my bank on this front.
The banks are going to use this to bring in other charges, so in many ways its only a tempory victory.