help with halifax! what are my rights?!

retrocircles

i have an ongoing problem with halifax, which recently became more serious. basic outline of events...

- at my 12 month review of halifax overdraft (maxed @ around £2k) they decided to recall overdraft because i didn't have a job. good move, like i can afford to pay back £2k with no job?!

- long-standing arguments regarding charges/interest being added, despite being told it wouldn't

- they wanted full balance or 10% per month working out at around £230. i offered £60 a month, but they refused so i had to go to citizens advice.

- CAB did financial statement showing i could give them £6 a month, but i didn't want to go down the route where funds are split between debtors, as i have a SUPER relationship with my other banks/lenders etc & wouldn't want to ruin a 10+ year good relationship over this! we can afford our monthly payments, just not in a position to pay £2k just like that!

- i since have found a job (back in august) but halifax are not interested in allowing me to keep overdraft.

- they demanded payment/payment plan from CAB by oct 28th, or would be passed to debt collectors.

- payment plan from CAB & 4 page complaint letter was sent by this date (about 2 weeks before).

complaint letter outlined;
=the fact i was told interest/charges would not be added once payments started going onto the balance. i started transferring £60 per month, yet charges & interest were being added.
=customer service, often shouted at, i was reduced to tears on one occasion & i'd say i'm a fairly hardy, thick skinned person!
=constant 'story changes'. one minute charges would be stopped, then not, then stopped. never given correct info.
=they sent what looked to be a default notice, (on october 10th) as i'd failed to make payment in full by october 28th. i queried this as the date had not passed (?!) & was told it was a friendly reminder! the word reminder was not used at any point of the letter, it looked like a default notice! i quote "have failed to repat the requested amount by the date shown in the notice and as a result we have terminated your credit agreement... Your account will be managed by the debt recovery department... If you choose to ignore this message we will be left with no alternative other than to take further action to recover the outstanding debt". doesn't sound like a reminder does it?!
=was told everything would be put on hold as i'd made an official complaint in writing, until complaint was handled & concluded.

finally received letter in response today, which summarises as:

- overdraft was removed because monthly payments of £1000+ had stopped. funny, i've never made £1000+ per month after tax in my life!!!

- charges are as agreed in terms. how so, when i have many members of staff telling me charges/interest would stop. my CAB advisor even called on my behalf at our meeting & asked if they would stop the charges/interest, and they told her YES! i have a witness!!!

- they state "your account was reviewed a decision was made not to extend your overdraft in line with the banks commitment to responsible lending. we consider ourselves to be a responsible lender and are obliged to ensure that we provide an adequate level of limit credit in accordance with the circumstances of our customers." i've bolded the part i think is insane! surely they should have reviewed my circumstances when wanting to take the £2k from me?! i obviously couldn't afford that, due to having no job, the whole reason the overdraft was taken away!!!!!!!!

- regarding level of customer service, i must provide names/times of calls. which if i want, i must pay £10 to get. hilarious!

- then the following is just slotted in at the end of the letter; "our records show that your account has been transferred to an external agent called blair oliver & scott and is no longer handled by the bank. i would be grateful if you could contact them on (blah) in order to agree to payment terms and agree a mutually beneficial way forward (as per your proposal & financial statement)

so, they received my payment plan, AND complaint letter & seemed to have passed it to the debt collectors anyway! so the point in me going to the CAB etc was?

i'm so very confused. does this mean i officially have a default? was the 'reminder letter' really a serve of default notice? surely they should let me know before this to say they have referred it to debt collectors?! not to mention these debt collectors haven't contacted me, and halifax are requesting i contact them?!

basically i don't know where i stand, and i don't know what to do to move forward. i plan to see the debt councellor at the CAB again. i refuse to let this lie. i will take this further. this is the umpteenth time i've had an issue with halifax, the last being in just february. i'm going to pay the £10 to get my notes/call times etc to see what evidence i can find in them. i'm going to try to get my credit file & see if i have a default.

any help/advice would be appreciated. i realise this was long. thanks for reading if you got this far!

RayWolfe

Any thread that starts with "What are my rights" automatically makes me react with the thought: "What are my responsibilities".

Rafter

retro,

Not sure you have many rights in this situation.

You have no right to continue to pay your other creditors while Halifax give you a interest free and payment free loan.

If you cannot service your debts then you do need some sort of DMP or consider an IVA or even bankruptcy.

If you do think now you have a job that you can get things back on track then you need to give Halifax a reasonable proposal.

I suggest you do the following:

Open a basic bank account with someone other than Halifax.

Write a letter (reviewed by the CAB) requesting halifax convert your overdraft into a repayment loan to be paid off over say 2 years at a reasonable <10% rate of interest (payments about £92 per month)

Threaten to take them to the ombudsman or banking code standards board for treating you unfairly and the police if they harrassed you and reduced you to tears - remember that they will probably have a recording of the call.

Check your credit rating. If you already have a default recorded it may be worth going down a more formal route to repay your debts, but you may jeopardise your access to credit for 6 years and may not be able to do certain jobs - working in a bank for example!

Good luck

R.

jopwo_87

Retro, your post smacks of "What can I do to get out of paying"
If you can afford payments with one creditor, then you should afford payments with them all.

I know this isn't what you want to hear but i dont think you do have any rights in this situation. You owe the money, you pay it!!

retrocircles

You have no right to continue to pay your other creditors while Halifax give you a interest free and payment free loan.

i obviously understand that. i've offered to pay £60 a month which they have refused. the only reason i'm expecting interest free is because they've told me interest will be taken off! payment free? no-one said anything about payment free.

If you do think now you have a job that you can get things back on track then you need to give Halifax a reasonable proposal.

i don't think you read my whole (very long i do apologise) post. i have a bank account elsewhere. i contacted the CAB. the CAB worked out i would given halifax £6 per month. i offered halifax £60 per month, and they have refused. they would not put it into a loan, or credit card.

Threaten to take them to the ombudsman or banking code standards board for treating you unfairly and the police if they harrassed you and reduced you to tears - remember that they will probably have a recording of the call.

i am paying £10 to retrieve notes etc. they state they record a % of calls. i imagine they won't have any recorded.

Check your credit rating. If you already have a default recorded it may be worth going down a more formal route to repay your debts, but you may jeopardise your access to credit for 6 years and may not be able to do certain jobs - working in a bank for example!

i have found said funds & could pay them (loan from family member) & planned to repay on my complaint letter being handled correctly, and charges/interest removed, as that's what they said they'd do. they haven't even requested payment since my complaint & referred it straight to the debt collector?!

retrocircles

jopwo_87 wrote: »

Retro, your post smacks of "What can I do to get out of paying"
If you can afford payments with one creditor, then you should afford payments with them all.

I know this isn't what you want to hear but i dont think you do have any rights in this situation. You owe the money, you pay it!!

i don't want to get out of paying! i want to pay on MY terms, not theirs. i've offered them £60 per month, which is reasonable on a £2000 balance since i pay £30 on a balance of £1000 elsewhere... but they have refused!

i'm sick of their unfair treatment, just because THEY'RE in a mess.

not to mention they were happy to give an overdraft one moment, and not the next!

retrocircles

RayWolfe wrote: »

Any thread that starts with "What are my rights" automatically makes me react with the thought: "What are my responsibilities".

my responsibilities? i was lead to believe that i should keep the overdraft under the limit, and attempt to pay it off over time. having no job, i couldn't pay it off, now i'm working i'm slowly paying off ALL of my debts!

funkyprincess

Retro

As your debt has been passed to Blair, Oliver & Scott, a debt collection agency, you will need to contact them to arrange a reasonable monthly payment to clear the debt.

You no longer need to deal with Halifax as the debt no longer lies with them.