Beneficial Finance Flexible Loan Agreement Changes

edited 30 November -1 at 1:00AM in Loans
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edited 30 November -1 at 1:00AM in Loans
Hi everyone,

I recieved a letter this morning from Beneficial Finance stating that they are changing their terms and conditions on my Flexible Loan as of the 31st December.

The changes are stated as follows:

1.) Removal of credit limit and withdrawal facility.
Your credit limit is reduced to zero and the facility to withdraw additional funds against this limit has been removed. This means you must no longer write cheque from this account or use your MasterCard. You must securely destroy the MasterCard and any remaining cheques held by you.

2.) Fixed monthly repayment
Your loan repayment will be fixed at the minimum repayment required to be made by you to your account in the next 30 days. This change is to your minimum monthly repayments. Currently the minimum monthly repayment is set at 3% of your outstanding balance; the change means that intead of a different minumum repayment each month, you will need to make the same monthly repayment each month. We will write to you again to confirm the amount of your new monthly repayment.

I'm a little unclear about this - maybe someone can tell me what it means before I call them on their 0870 number.

If my credit limit is reduced to zero - doesn't this mean that I am going to be overdrawn on this account instantly? Or are they just infering that now this account will be acting as a loan until it is paid off? I'm a little worried, because obviously I have no means of repaying the outstanding amount.

Thanks in advance~
#70 in the £2020 in 2020 challenge. (£1999.52)


  • I also recieved this letter today and was very confused as I hadn't missed payments etc. I did try to call them but after 5 mins of being on hold I decided to hang up as it costs a fortune.
    Any info would be great! Thanks
  • Credit card companies have been reviewing their card accounts and downsizing peoples credit limits. This may be because of potential risk, amount of overall debts of the consumer or perhaps infrequent usage.

    Look on say no to 0870 if you can find an alternative number.
  • Hi,

    It looks like all accounts of this type that Beneficial/HFC used to offer are getting this letter. My guess from the words (that are not very clear) is that as numbers dwindle they cost too much to administer and will be replaced by repayments as a standard loan instead that will fit in with the products they offer. They closed all current accounts with them in a similar way about 2 months ago and suggested the HSBC current account instead.
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