Lost 0% after 2 months

Shaanbles

I was late with a payment on my halifax card in November - my fault as I had entered the date wrong when making the payment online through my bank account.

However Halifax's reactions were over the top. The first I knew there was a problem was when my card was refused; called them and made payment of £7.41 on the phone; but the card still got refused. In fact I never ended up being able to use it again.

I then got a letter to say due to late payment my limit was being reduced to £1600 from £9800; I owed £1579 - so basically nothing left to spend! I then got another letter to say I had broken the T&C's and was no longer on 0% even though I'd only had the card for 2 months.

They actually seemed surprised when I called to cancel the card; I explained it had been an error in the late payment but they weren't interested; I asked exactly what I owed and paid it then and there and closed the account.

I've now just got a bill for £5.40 interest, called to say I paid in full 1st Dec; but they maintain I owe it because of my late payment - I can't see why; but I've been told I'll keep being charged interest until I pay it; as it is I will be charged £0.50 next month. What do I do - I feel like I'm being ripped off but can't prove it.

jamalfatty

Your not being ripped off but they seem to have been a little harsh with a new customer, you would normally have any 0% rates reinstated after first offence if you calmly explain situation to them.

The £5.40 interest will be correct and would be the interest accrued between date of your last statement, and the date of your payment (do a search for residual interest).

For the sake of having late payments recorded on your credit file I would just pay it and then forget about it.

PeteHi

Shaanbles wrote: »

I was late with a payment on my halifax card in November - my fault as I had entered the date wrong when making the payment online through my bank account.

However Halifax's reactions were over the top. The first I knew there was a problem was when my card was refused; called them and made payment of £7.41 on the phone; but the card still got refused. In fact I never ended up being able to use it again.

I then got a letter to say due to late payment my limit was being reduced to £1600 from £9800; I owed £1579 - so basically nothing left to spend! I then got another letter to say I had broken the T&C's and was no longer on 0% even though I'd only had the card for 2 months.

They actually seemed surprised when I called to cancel the card; I explained it had been an error in the late payment but they weren't interested; I asked exactly what I owed and paid it then and there and closed the account.

I've now just got a bill for £5.40 interest, called to say I paid in full 1st Dec; but they maintain I owe it because of my late payment - I can't see why; but I've been told I'll keep being charged interest until I pay it; as it is I will be charged £0.50 next month. What do I do - I feel like I'm being ripped off but can't prove it.

thats halifax for you!!! I had similar problems with them trying to screw me over.

I now have a 0% Virgin card, missed my first payment due to being forgetful, rang them up and explained I hadnt received a statement and they removed the penalty and reinstated my 0%.

Virgin > Halifax

bengal-stripe

This is called 'residual interest' and it is absolutely correct.

The interest listed on the bill covers up to the day the bill got compiled. Then, the following month's interest covers from the invoice date to the actual day the money was received (there can be up to 3 1/2 weeks in between.)

bengal-stripe

PeteHi wrote: »

missed my first payment due to being forgetful,

You ought to do something about your chronic forgetfulness! Set up a DD!!!

Shaanbles

jamalfatty wrote: »

Your not being ripped off but they seem to have been a little harsh with a new customer, you would normally have any 0% rates reinstated after first offence if you calmly explain situation to them.

The £5.40 interest will be correct and would be the interest accrued between date of your last statement, and the date of your payment (do a search for residual interest).

For the sake of having late payments recorded on your credit file I would just pay it and then forget about it.

Yeah very harsh - hence why they left me no choice but to cancel.
OK still don't understand why it's going to be £5.40 interest - I paid the total outstanding balance the day I got their letter saying my 0% had been revoked. BUT as you say I don't want this on my credit file; I shall pay it but wait it is due and I shall wait until next month to pay the £0.50 estimated next month's interest!

Got an M&S 0% one last month - must set up DD!!

louiser123

i had similar with aquacard which is halifax, i pay by direct debit, i changed my bank account and rang them to change the details 3 weeks before it was due out even before the statement was produced, oh yes they cancelled old dd in old account but forgot to set up new one!!!!
they tried to charge me after they rang me to say i had missed payment!!

i said check your recorded calls i think youll find you are at fault!

sdooley

In partial mitigation, direct debits often don't work for the first month (banks have always advised me to make first payment personally).

But this sounds like being a bit chancy - trying to pay on the last day possible - might be best for stoozing optimisation but a high risk strategy (if not done by DD).

exel1966

You should never accept that a DD has been set up and is operative for the next payment until you see it confirmed on the statement in writing. All card companies advise when setting up new DD's to continue paying manually until this time.
As for not setting up a DD at all, I think the OP now sees the benefits.

The interest charge of £5.40 is for the period between your previous statement being issued and the actual date you cleared the balance. As your 0% was cancelled for that whole period interest will have rightfully been charged for that time.

Your certainley not being ripped off !