Halifax Closing My Account

hm671

I've received a letter from Halifax saying they will be reducing my credit limit down from £2.5k to £500 and then after 2months closing my account.

First of all I have no idea why they are doing this. I've had the account over 5 years and have never had a late payment. I've also usually paid off the full balance through online banking even before the statement is issued each month.

Is there anyway I can fight them and stop them from doing this? It seems to me it's similar to the Egg credit card cancellations back in 2008 as they've no made any interest out of me.

jonesMUFCforever

Have you asked them - if no answer is forthcoming start a formal complaint.
Also check your credit reports in case a CIFAS marker has been put on your account.

You don't say if you also have a current account with Halifax - if you do you might have to think about opening an account with a different bank.

hm671

I wrote to them today so will have to wait for a response.

I monitor my credit file with equifax and have just done a search with experian. Both show no adverse information and with all my accounts fully up to date.

I only have this the card with Halifax/BOS - I have never been a fan of them, just took it out as there was a 0% purchase offer however many years ago.

sharpy2010

First rule - Don't trust the Halifax with ANY of your money.

Secondly - No, you can't fight it. Well, you can, but you won't win. Credit isn't a right, they can pull it away at any point they see fit.

boogiemaster

I bet its because you make them no money and you've been given the name deadbeat its a name they give to people that make a company no money.


I've seen it happen to catalogue users and credit card users more and more they just get a letter stating their account is being closed no explanation.

I've read lots of posts where the minimum payer will get increases galore and them that pay in full each month don't.

They just want profit not deadbeats

boogiemaster

They closed my account but I did owe them money but they did take £2500 from me in bank charges.

I do feel your pain

bengal-stripe

hm671 wrote: »

I've also usually paid off the full balance through online banking even before the statement is issued each month.

That might be the problem.

If you pay before the statement is issued, you will have nil turnover that particular month. If you do that all the time it will look to the computer (who might have well selected your account) that you had a card for five years but virtually have never used it.

The problem is not paying in full (I believe 60% of CC are paid in full). The problem is having 'no turnover' when every month your statement is zilch, zilch, zilch.

Gromitt

hm671 wrote: »

First of all I have no idea why they are doing this. I've had the account over 5 years and have never had a late payment. I've also usually paid off the full balance through online banking even before the statement is issued each month.

So your statement says "Minimum due: £0.00" ? If so then your account has probably been classified as "dormant".

I remember doing this with my Nationwide card and after 6 months, my credit rating on the account changed from "0 - Good" to "U - Unclassified/Not reported". So I switched back to paying only when I had received a statement, and then my credit marker switched back to "0 - Good".

Have you checked your credit report for this account?

Halifax might just be clearing out the "unused" cards (cards where the statement balance is always zero).

chexum

Gromitt wrote: »

I remember doing this with my Nationwide card and after 6 months, my credit rating on the account changed from "0 - Good" to "U - Unclassified/Not reported". So I switched back to paying only when I had received a statement, and then my credit marker switched back to "0 - Good".

That's informative, thanks! Though it doesn't quite make sense as most cards report the monthly credits/debits as well, not just the statement balance, so they should have all the details to see it's not actually dormant.

Perhaps if the OP's card is one of those where this is not reported, and (or) their "dormant card department" does actually work with only the statement balances for some reason...

fozmcfc

No harm in trying to get them to reverse the decision, but you have no right to expect it, they can close down your account at any time for any reason.

Personally I would say ok sod yer, I'll go elsewhere, providing you have a decent credit rating, their are numerous cards offering 0% on purchases from opening for instance and some with cashback.

I expect they might close down my card this year through non use, I haven't used it for at least a year, maybe a bit more.

I only use credit cards now if they have a 0% on purchases deal on them. Once it runs out if they don't have a repeat offer, then I don't use the card.