Halifax Card Credit Card Interest Rate Opt Out? (And Loyalty Team.)

sonnymanou

Hello,

Following Martin's advice found here (sorry, being a newbie, I can't post the link, but it is on this website entitled "Credit Card Shuffle - Reduce interest rate without new credit"), I decided to ring my credit card company (Halifax) to try to reduce my credit card interest.

After I got through, I got hold of an unhelpful lady by the name of Tania, who preempted me with the following question.

Was I ringing to opt out of November's interest rate rise?

I didn't know anything about it - and neither did she!

I asked her what the actual interest rate was at the moment and what was it rising to? She said it was 18.9% - and she couldn't tell me what the rate would be in November! In actual fact, she wasn't sure if the rate hadn't already gone up, because she couldn't find the relevant information on it!

She put me on hold to find out and came back to tell me that the interest rate was going up 1% to 19.9% in November, but I could opt out of the rise if I wanted to?

What the hell is that all about?

Anyway, she warned me that if I did opt out, my interest rate would be locked for six months. This means that if the Halifax Credit Card interest rate was to fall, my interest rate wouldn't.

Remember, I rang up to see if I could reduce my interest?

Tania said she wasn't qualified to reduce my interest rate.

She made a mistake somewhere in the conversation and mentioned a Loyalty Team. (o2 have a similar department, so I kind of knew what this was.)

I asked to be transferred to this "Loyalty Team", and she refused. I asked her why not?

She told me that they wouldn't reduce my interest rate.

I pressed her.

She said that she would also get in trouble for transferring the call.

I pressed her some more.

She said that they wouldn't take the call. (She hadn't tried at this point.)

I asked her what the "Loyalty Team" actually did?

She told me that they talk to customers who are trying to close their accounts and offer them interest rate reductions to try to keep them!!

I wasn't getting anywhere, so I thanked her and said goodbye.

Well that is the essence of the conversation. What. is. going. on. here??

:mad:

Can you please advise me of my next step?

Regards,
Sonny

P. S. If you ring the Halifax Credit Card department, ask the assistant's name. If it is Tania, don't waste your breath.

stephane_2

If Halifax increase your interest, you'll either get a letter to inform you or it will say something on your monthly statement.
Since the new legislation, you can decide to opt out of the increase, which means that your outstanding balance will be locked at the current rate but the account will be closed & you won't be able to use the card. You'll still have to pay the minimum payment at least until the account is fully paid....

sonnymanou

Thanks for your information, Stephane.

Regards,
Sonny

PanchoJones

Call Halifax retentions (Customer Loyalty Team) 0800 077 8679.

They are not designed to offer better interest willy nilly, they are there to retain customers that are closing their card after paying off their balance in full by offering a different card at a new better interest, chances are they won't just reduce your interest because you ask nicely.

euronorris

stephane wrote: »

If Halifax increase your interest, you'll either get a letter to inform you or it will say something on your monthly statement.
Since the new legislation, you can decide to opt out of the increase, which means that your outstanding balance will be locked at the current rate but the account will be closed & you won't be able to use the card. You'll still have to pay the minimum payment at least until the account is fully paid....

This is true. They do it a couple times a year to some customers.

The first time, I opted out and they decided I could keep my account open etc. The next (and last time) I opted out, they did go ahead and close the account, so I can only repay the balance now. Which is fine by me!

It is pretty standard of the CC companies to not offer an interest rate reduction unless you are threatening to leave. Quite often if you ask to leave, they will reduce the interest rate to try and keep you as a customer. But, be warned, this won't really work if you have a large outstanding balance on there (as they will know you prob won't be able to pay it off in one lump sum) - unless you are about to do a balance transfer.

So, if the card is clear (or about to be), call up and ask to cancel it. You'll most likely be put straight through to the loyalty team then who will offer a reduction in the interest rate.