Halifax's dirty trick

liuyangor

I am currently using Halifax credit card and paying minimum payment each month. Last week I received a letter from them told me that my credit limit has been reduced to 700 pounds. I was used to paying minimum payment by direct debit and didn't pay much attention to it. The result was that my previous balance(around 692 pounds) plus interest charge was 700.19 pounds last month (I didn't use this card for a long time, so the intrest charge was the only transaction last month).... And I checked my online account it reminds I have exceeded my credit limit. will it affect my credit report? Can I appeal to credit rating agency?

Many thx.

jayme1

and the dirty trick is?

this is exactly how credit cards work, martin lewis even says that if you cant pay off the credit card in full each month then dont spend on them.

it even says on the statement that paying the minumum payment will take forever to pay off.

it probably will go on your credit record but it shouldnt effect it that much but that depends on your other credit past
just try to pay it off in full asap that will help your credit record more.

liuyangor

the dirty trick is that I received the letter just one day before the due date which left me no time to pay it. Now today it is £0.19 above the reduced credit limit and they can have the reason to charge and made negative affects on credit report.

liuyangor

technically, i thought paying by direct debit should never go over credit limit, isn't it?

Malky

liuyangor wrote: »

technically, i thought paying by direct debit should never go over credit limit, isn't it?

Not so. Say you pay the minimum of £25 but the interest is £40 then your balance is going to keep on increasing. When you're close or on your limit, the extra interest above your minimum payment makes all the difference.
If all you can afford every month is the minimum payment then Halifax are either doing you a favour by reducing your limit or, as you have found out, seen it as a way to make extra money from you.
There's no dirty trick. Learn from this and keep a closer look at your finances more regularly.

opinions4u

I was used to paying minimum payment by direct debit and didn't pay much attention to it

A lesson to learn for the future then.

(Personally I think they should ensure that the minimum payment cover interest and insurances and keeps you within the credit limit ... but that's another story).

Frogling

jayme1 wrote: »

this is exactly how credit cards work, martin lewis even says that if you cant pay off the credit card in full each month then dont spend on them.

I love how simplistic you make that sound! Although common sense (and Martin) will say that you shouldn't spend what you don't have, there are times when a credit card is the only option. For example, my car recently needed some work doing on it, and I couldn't afford to simply pay it all in one go.

OP, simply ring Halifax - or go into branch and have them ring through to the credit card people - and explain what has occurred. They will be able to sort this out for you easily enough without your incurring a charge, etc.

Aspiration

I agree that is naughty, call them if you can speak with someone normal i'm sure they'll sort it for you. Only watch out is to make sure all payments cover interest and knock a bit of balance off, but if it went over because they reduced credit rating then common sense would support you, Good luck