Halifax credit card warning!!!!

moneystress_2

I thought all who are attempting to manage their debts, should be made aware of this major issue:

My wife and I contacted the Halifax Collections Department (on advice from Halifax customer services), via letter to explain that we could not afford future repayments on our large credit card debt. We included a budget sheet and realistic and fair payment proposals and a request to freeze/reduce interest (29%!)

Four weeks passed, and we had received no correspondance from the Halifax, so we made several calls to customer services, explaining that we couldn't cope, and needed help.

We were told by all parties, including a senior manager that they would not respond until we actually defaulted on payments, and that our letter hadn't been received (it was sent recorded delivery!). Even it it had been received, they would ignore it, even though it explained that my wife was now seeking medical help for stress relating to debt!

As so called responsible lenders, how can it make logical, intelligent sense to ignore a request for help, and a genuine attempt to resolve issues before they get truly out of hand!!?

Even the senior customer services agent couldn't believe the policy, and had to check with a senior manager at Halifax customer collections, who confirmed it was corrrect.

I am truly stunned, all this means is that we now have to wait 2 weeks until a payment is due, then default, incurring charges and further interest (and increasing the debt we already can't afford), before any action is taken, 6 weeks after we have made genuine attempts at resolution.

Is this Halifax policy legal, and how can they possibly get away with it as 'responsible lenders'.

My wife is dismayed, as we have had a similar debt with Barclaycard, however this has been resolved to our satisfacton without going into arrears, yet the Halifax are making life for us very difficult.

Has anyone else experienced this ludicrous policy, and is there any other method of resolution (I am already contacting the Omnbudsman in desperation).

Tired, stressed and at our wits end.:(

barbiedoll

To be honest, if you have to pay less than your minimum payment, you will be in default anyway so I can't see why they are being so obstinate. You should send the letter again, enclosing a token payment, of whatever you can afford and don't stress too much about interest and charges going onto the bill. They will add those anyway so there's not really much you can do about it for now. Later on, they may stop the interest although it's not guaranteed. I agree, they are most unhelpful and you have followed the correct procedure, you have notified them that you are in difficulties but sadly, your story is not uncommon. I have read posters on here saying that their bank will not accept reduced payments unless they are in a debt management plan with a recognised charity or organisation, something which many people don't choose to do.

Speaking of which, have you thought about seeking help with your debts? There are several charities who will not charge you for advice or for administering payments to your creditors and it may help to ease your stress somewhat. Recommended on here are; Consumer Credit Counselling Services (CCCS), Payplan and Christians Against Poverty (CAP). Also, the Citizens Advice Bureau or the National Debtline can be excellent sources of help. Please don't make yourselves ill over this, many of us on here have been through a similar situation, we know what you are going through. Complaining to the Ombudsman may help, lenders are supposed to treat customers who are in financial difficulty with sympathy, in reality, as many of us will testify, this rarely happens. You're not alone, you will find lots of help and support on here, you only have to ask. Remember, it's only money. They won't imprison you, they won't take your house and they can't hurt you unless you let them. Let us know how you get on with both the Halifax and the Ombudsman.

Before I forget, you should be aware that as soon they know that you are having trouble making payments, they will be ringing your home or mobile phone almost non-stop to try to hassle you into paying more. They may be quite rude and intimidating, again, remember that they can't have what you haven't got. If you have an answerphone, now is the time to switch it on. When you start getting the calls, DON'T speak to them, instead, send them this letter.....
http://forums.moneysavingexpert.com/showpost.html?p=33792321&postcount=39
It's a legal requirement that they stop calling if you ask them to.

One other thing. Do you bank with the Halifax? If you do, you should open another (basic) bank account immediately. Under the "off-setting" rules, they will be able to take money out of your current account to pay any arrears that you may owe to them. This is perfectly legal and may mean that you cannot pay your priority bills because they have taken your money, so beware.

PhotoDave

We are at the stage of missing our first payments on our credit cards, we are in the process of addressing it, but I agree with your point, the attitude of the major (tax payer funded) banks is deplorable. I seen the RBS advert on telly tonight, about doing things better, customer focused etc....just as long as your circumstances don't change!

bottleofred

Hi Moneystress and welcome to the forum,

I'm no expert, but it appears to be the way these companies are. If you can't make the full payment, then you have to wait until they can default the account (due to no payment), slap on late charges and additional interest and kill your chances of getting credit for at least 3-4 years (although the default will stay on your credit file for a total of 6 years). The best thing is to try not too worry yourselves about it (I know it's easy for people to say, but I have been in exactly the same position as you and know how you feel!) and start paying what you can afford when they've finished flexing their idiotic financial muscles! As I said, try not to worry, but definately do try to get the interest stopped ASAP. Also definately send the letter Barbiedoll has mentioned and when they phone, tell them you only wish to be contacted in writing, don't go through the security check and put the phone down!

Good luck

moneystress_2

Thanks for the info bottlefred, I think you're right, it's just so ridiculous a policy!

psychopathbabble

I have to say it's not just halifax... I received the same advice when I went into Lloyds to tell them I couldn't cope with my overdraft... I was told that I'm not a bad enough customer for them to help me, best thing I can do is, and I quote, 'stop paying the interest so it gets passed to our collections department who will then try and help you'... er yeah ok!

stephy110288

Hi, my situation is smililar, i have been in a dmp for over a year now, i dont get any greif off anyone except halifax. even though i was in a plan they were still calling me constantly and i've taken my complaint to the FOS for harrassment as it really affected my uni work cos i was so stressed. i would take it up with the FOS if you are not happy with their behaviour, especially if its making your poor wife ill. i sent them the letter that someone has linked up there but unfortunately they completely ignored me and i am now taking it up with the ICO. dont let them get away with making you this stressed, you are doing everything you can to sort the problem out and its not fair that they treat you like this. go the FOS

DarkConvict

This was posted yesterday and provides an informative read - http://www.ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

My advice is you go on a DMP with a debt charity like CCCS, if you cannot afford payments. Basically since you are trying to pay rather than not paying they should make an attempt to help you and a default that is placed should have a note that it is due to being on a DMP.

moneystress_2

Hi Again,

I have to say that I am so grateful to everyone who has posted advice on this forum for my wife and I.
It really is a comfort to have the support of everyone taking an interest, and has made us both stronger and more confident with a clear sense of direction.

Thank you all.

:A

bertman

Hey Moneystress.

Sorry to hear you are having problems with Halifax. My experience is that they are total s**ts, they have different departments that don't speak to each other.
We had similar problems to you after our business collapsed, I contacted Halifax to say that I couldn't make the minimum payments and they told me that until I defaulted that they couldn't do anything, so one month later we defaulted so they put me on a reduced payment plan - this meant that they hit me each month with late payment charges and overlimit charges of £44.00 which meant the debt just kept going up, then they took money out of my bank account twice - and both times they refunded it - the departments weren't aware of the plan that Halifax had put us on!!!

The latest is that they told me they had closed the account so I would just have to keep paying the debt till it was clear, this didn't bother me as we haven't used a credit card for over a year now. Then this month I had a letter telling me that they had reviewed my account and have actually put my limit up.....!!!!

I can't wait till I have paid this off so I never have to have anything else to do with this pack if idiots.

moneystress_2

Hi Bertman,

I deeply sympathise with your situation, I can't belive a so called professional organisation can act this way, I am of the same opinion of you, as I will never deal with the Halifax again.

It is just so frustrating, it's like talking to a brick wall, my wife gets upset, so I am dealing mainly with our situation, and I'm not intimidated by them, it just makes me angry. The sad thing is, sometimes the advisors are fine , and can see your (completely logical and intelligent) point, it;s just heir hands are tied and can't do anything. The problem is they can't put you through to someone who can...so where can you possibly go with that??

Our repayments on the Halifax card are £275 per month, and we were proposing payments of £110 (with a request to quash/greatly reduce interest), so we were being totaly reasonable in my mind.

After the way they have treated us, I really think we should offer them £10 a month out of principle!! You'd think they'd actually want to listen to someone who is proposing to pay the debt...I know I would if they owed me.

The whole situation leaves a very bitter taste in the mouth, and really makes me feel like making things as difficult for them, as they are for me..childish I know, but that is the efffectt hey have.

Perhaps if they treated people differently, they wouldn't need the multi million pound advertising budget they utilise each year..as good customer experiences, spread via forums like this and word of mouth carry far much more weight than glossed over advertising campaigns. (see Trip Advisor for an example of the power of this!)

:beer: