Halifax Cc - Lower Minimum Payment From 1 October 08

df2008

Has anyone else received revised T&Cs from Halifax stating that from 1 October minimum payments will be 1% of outstanding balance (there are some other min payments but don't have the paperwork with me).

It states that this change is due to new legislation - does this mean that all credit card minimum payments will be reducing?

Any advice appreciated.

Thanks

DF2008

NickX

I think that the change is 1% of balance or (interest + charges) + £5, whichever is the higher.

In some cases (e.g. those on 0% deals) this will result in smaller minimum payments. Good news for the stoozer.

However, I think this has been done because some of the recent hikes in standard variable rates has meant that minimum payments were not covering the additional interest charged, hence the debt was increasing.

By charging (interest + charges) + £5, this forces the balance to reduce by £5 each month, hence solving the problem.

However this could mean increased Minimum Payments, and the card providers could increase the standard variable rate to whatever they like and the debt would still decrease by £5 with each monthly payment.

leicsmarkyr

The terms state (insert leaflet reference EE H5 E-CCA 08/08 H5)

Your minimum payment will now include any amount you owe that is more than your credit limit. Clause 2.2 will now read:

We will send you a monthly statement, unless there have been no payments into or out of the account during that period and the balance is nil. Each month, if the balance is £5 or more, you must repay the greater of:-
a) 1% of the amount you owe us; or
b) an amount equal to the total of any Credit Card Repayments Cover premiums, interest (or the minimum interest charge), overlimit and late payment fees plus £5.
If the balance is less than £5 then you must repay the full amount. Your statement will show the date by which you must make this month's payment.