Credit card repayments with Halifax - HELP!!

pontecake

I'm hoping someone can help and offer some advice as I've drawn a blank. My bf has got himself into debt with halifax credit card by about £2k and admittedly was using the 'bury head in sand' technique last year until he came clean:rolleyes: . I helped him create a budget so that he could pay the monthly repayments after speaking to a debt management company who had suggested that we send in an expenditure report detailing how much he could afford to pay. We also asked if the interest rate could be reduced so that the money he was paying would pay more of the debt off.
Anyway cutting a long story shorter they agreed to the £80 per month until Jan09. During this time he phoned to try to set up a dd but nothing was ever done. Eventually I talked to a 'manager' last night as I tried to explain that he never received statements; was never told that he had to pay the min payment by a certain date; was not informed that the agreement was for only 3 months; that setting up a dd would mean that the arrears of £400 would be taken immediately and that he should just set up a SO to prevent this happening; or that cos he was paying more that the min amount his interest rate couldn't be reduced!
I was aggressive but polite with the man trying to explain that this kind of information was never explained to him so that he could make the necessary decisions! He told me that it wasn't his problem as that in the end they were a company who had to make money:mad: . Again I suggested that surely a company like the Halifax should be responsible and try to help their customers debts but he completely dismissed this idea! I explained that we had cut back his budget so that he could pay more of the debt off but that seems to be not working in his favour. I was told that this wasn't fair to other customers who could afford to pay their min monthly repayments! I just can't see the logic if someone has not paid for 6 months and letters are being sent saying that debt collectors will be sent in how can this person be saying he is able to afford the payments!?
I am now at a loss as to what to do? Do I continue with this battle with the Halifax? Or do I try and find another creditor ie loan etc to pay this off but he has got such a bad credit rating that I'm not sure this is viable?
HELP...the bank has got us by the *****!!

CLAPTON

A little confusing

-he had a debt of 2,000

-what was his minimum monthly payment?
-was he making them
-if not, how many months was he behind when you contacted Halifax?
-was his account defaulted?.. if so when?
-did they agree to freeze interest ?
-anything in writing?

pontecake

CLAPTON wrote: »

A little confusing

-he had a debt of 2,000

-what was his minimum monthly payment?
-was he making them
-if not, how many months was he behind when you contacted Halifax?
-was his account defaulted?.. if so when?
-did they agree to freeze interest ?
-anything in writing?

Sorry!!! Its is very confusing!!!
-Debt is just short of £2000
-Minimum monthly payment is around £60 so I found out last night
-He wasn't making them for several months until Oct 08 - not sure exactly how long
- not sure if the account was defaulted or not...he is over his credit limit of £1500 and it was sent to the collections dept of Halifax
- they've not done anything with the interest
- I've seen one standard letter which states his interest rate as +20% and that agreement of £80 per month repayment but nothing saying when it was due.

I'm going to his house tonight and going to get ALL the letters I can find in the place and go through them but he usually shows me everything (he's not very good financially!!!)
thanks for your help

Robert_Sterling_3

Is he going to pay some off now?

pontecake

He's been paying off £80 a month since October. The balance doesn't seem to be going down though as the interest is so high! Plus on his credit report it is saying that he has deferred payments for the past 3/4 months which is untrue. The payments are not always exactly at the same time of month as he gets paid fortnightly so its difficult to guage as he can only pay once he gets paid

CLAPTON

-is he receiving 'normal' bills each month?
-do they show the APR?
- 20% APR would mean about £34 in interest on a balance of 2,000
-presumably the CC isn't / can't be used anymore?


and well done on trying to help him sort this out.

pontecake

I've just found the latest statement which says that the APR is 21% and yes the interest is £32 a month. The actual card was destroyed months and months ago.
Do you think it is worthwhile looking for a loan as his credit rating is so poor or should he stick to the Halifax?
Also if we send in an expenditure form indicating that he can't make the minimum payments then do they have to reduce the interest rate? but if this happens does his make his credit rating even worse?
Its just so complicated!!
thanks for your help

TFD_2

pontecake wrote: »

He's been paying off £80 a month since October. The balance doesn't seem to be going down though as the interest is so high!

If he's missed several payments then he has no chance of a loan. If he has been paying £80 a month, then this will have been clearing £50 a month approx off the balance.

Also 21.9% isn't all that high, honestly!

pontecake

well, trouble is balance in oct was 1859 but just had a statement saying balance is 1902 after he's paid £240 in payments!
Admittedly he does owe £112 this month which takes it down to 1890 but its not going down!!
it seems that although interest is £33 he is also getting a £12 a month charge taking his total charges per month to £55...which means hes paying only £30 a month off...
but for some reason his balance has still not gone down! i don't understand...and they are not helping him to get out of the problem

TFD_2

Look at the statements - you can then see why it's not going down. Have £240 of payments been paid since the last statement, and before the latest statement?

pontecake

the problem is he doesn't seem to have the statements from october to january! is the cc company liable to send out previous statements? or can they talk through the statements with us?