Halifax increased interest charges

dazla

Hi

I have been on a dmp for 6 months now but all of a sudden Halifax have increased their interest charges on my credit card debt. For the last 6 months they were charging me £26 a month onmy debt of aprox £2400 but now the interest charges are £40 a month. All my other creditors stopped interest are only charging a small amount. Has anyone else on a dmp with a halifax credit card debt, had their interest charges increased suddenly?

Thanks
dazla

bottleofred

Hi dazla,

No creditor is under any obligation to stop or reduce interest charges unfortunately and indeed, some creditors continue to punish people on dmps by keeping it at the high rate it was, which really doesn't help. You should consider asking whoever your dmp is with to contact them and ask why it's increased etc, as it may be that it's a mistake, although they do have a habit of punishing debtors.

Good luck

Red

dazla

bottleofred wrote: »

Hi dazla,

No creditor is under any obligation to stop or reduce interest charges unfortunately and indeed, some creditors continue to punish people on dmps by keeping it at the high rate it was, which really doesn't help. You should consider asking whoever your dmp is with to contact them and ask why it's increased etc, as it may be that it's a mistake, although they do have a habit of punishing debtors.

Good luck

Red

Thanks, I have emailed payplan to ask them to ring halifax

Cheers
Dazla

sickasachip13

Oof, that's bloomin' mean. They haven't done this to me, but it does worry me!

There's a template letter on the National Debtline to ask creditors to stop %. We used this on one and although they didn't stop it completely they dropped it to a nominal level.

Good luck SAAC

Issuma

I'm 9 months in to my self managed DMP and out of 8 creditors only 2 haven't stopped the interest and one of them is the Halifax, no matter how much I pay the balance just keeps increasing, I've rang them and wrote to them but it doesn't make any difference, sometimes I wish they would pass it to a DCA then at least the interest might stop !!!!!!!!!!

sickasachip13

I'm surprised they haven't passed it onto Blair, Oliver Scott. I'm on a DMP with CCCS and out of our original 19 creditors, 17 completely stopped % (and still have 15 months on) and two charge only nominal % (Argos and one of the Barclaycards). But my Halifx debt:

OD - passed to Blair, O, S and then onto Lloyds TSB and then onto BLS (Lloyd's in house collectors)
CC - Robinson Way
Loan - Blair O S

And the moves happened very early into the DMP. Hopefully you folks that are having problems will have the debt move on.

SAAC

Issuma

I also have a Halifax loan which was passed to Blair Oliver Scott almost immediately with the interest frozen but for some reason they're not doing that with my Halifax cc ??:mad:

secretshopper75

I have 2 o/ds with the Halifax, both finally stopped interest after 16 months, a credit card with £10K plus which is increasing in balance due to interest charges and a two other credit cards which have nominal interest...no consistency at all

Brogden

My take on Halifax credit cards and the freezing of interest is that they will freeze interest and charges in certain circumstances. I really believe that it depends on the agreed amount that is going to be paid. I am ashamed to say that following a very in depth and honest Income & Expenditure exercise with Albion Collections (part of Halifax of course) we arrived at a payment which was roughly one quarter of the usual minimum payment. Interest and charges were stopped with the arrangement being subject to review six months later although the account would be passed to DCA's if some serious money were not to be chucked at them.

If the I & E calculation with Halifax/Albion had produced a payment equal or not too much less than the standard minimum payment I do not believe interest would have been stopped. It may have been reduced. I seem to be getting a similar message from NatWest but still have to go through this process with them.

Regards all,

Brogden.