New Halifax overdraft system 'will be expensive for some'

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New Halifax overdraft system 'will be expensive for some'

Tue 27th Oct 2009

People that go into their overdraft the most will find the new system from Halifax to be an expensive proposition, according to a finance expert.

Andrew Hagger, a spokesperson for Moneynet, recommended that those people who have an account with the financial services provider and are often overdrawn should look into how it will affect them.

They can then choose to look at other banks and the accounts they are offering, or they can begin to budget.

Mr Hagger explained: "There is more transparency, you can definitely say that, but there are more people who are going to find it a bit more expensive unfortunately."

One worry is that consumers will not react well to Halifax taking in too much additional revenue, since the organisation wasgiven so much public money to bail it out, he added.

This month, Halifax announced that it will begin charging people for both authorised and unauthorised overdrafts at set rates per day, but it will also be dropping debit interest and other fees.

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