Halifax Credit Card Changes - Beware!

soullink

I recieved my Halifax credit card a few months back, with 6 months interest free on balance transfers and purchases, and this morning I recieved a letter regarding changes to their Terms & Conditions.

So for those of you looking to get one soon - beware. Here are the changes (I can't find the original T&C's - but there is enough info here)...

1 - "Your cash advance fee will now be 2.5%, (minimum £2)."
2 - "Where we offer you special rates on balance transfers and credit card cheques we may include a handling fee of 2%, (minimum £2)."
3 - "Where you incur interest in any month and this is less than 50p we have introduced a minimum interest charge of 50p."
4 - "We have introduced the ability for us to limit the proportion of your credit limit that you can withdraw as cash."
5 - "In certain circumstances we may return balance transfers that result in a large credit on your account back to your other card provider."
6 - "We have changed the notice period we will give you if we make changes to your interest rates or any changes that are not disadvantageous."
7 - "From 31st of May 2005 we will be withdrawing the seldom-used Travel Accident Cover, Flight Delay and Lost Luggage Cove and Purchase Protection Cover." (only applies to claims after this date - but these are probably seldom used because it's hard to find out how to claim in the first place!)

That's the points they have stated as far as changes go in the letter I recieved.

So much for the bank that "gives you more"

Magentasue

Don't like the look of point 4 - I was considering Halifax for tarting. They seem to be saying that you're theirs for the duration unless you get a card that transfers a balance to your bank account.

Walletwatch

Magentasue wrote:

Don't like the look of point 4 - I was considering Halifax for tarting. They seem to be saying that you're theirs for the duration unless you get a card that transfers a balance to your bank account.

I don't think they are referring to balance transfers in point 4. I think it is the maximum amount you can withdraw as cash advance as a proportion of your credit limit.

ceebee_2

Point 3 (minimum 50p interest charge) looks as though it could be illegal since it will change the published APR !!!!!!!!!!!!!!!!!!

Martinslovechild

I'm more worried about number #2 :-

soullink wrote:

2 - "Where we offer you special rates on balance transfers and credit card cheques we may include a handling fee of 2%, (minimum £2)."

Not good news for stoozers that a lot of banks seem to be moving in this direction...

deemy2004

Yeh its the 2% that will reduce the return on stoozing on the halifax cards. Still that does leave 3% or so.

Magentasue

Magentasue wrote:

Don't like the look of point 4 - I was considering Halifax for tarting. They seem to be saying that you're theirs for the duration unless you get a card that transfers a balance to your bank account.

Ooops, I meant point 5.

smartsaver

soullink wrote:

5 - "In certain circumstances we may return balance transfers that result in a large credit on your account back to your other card provider."

Hope EGG don't pick up on this one :eek:

Milarky

smartsaver wrote:

Hope EGG don't pick up on this one :eek:

You would simply have to be prepared to transfer an Egg balance one day early - so Egg can't clock that it isn't a 'geniune' balance transfer you're making- and just be prepared to pay Egg one day's interest. [Cheap at the price!]

Walletwatch

Magentasue wrote:

Ooops, I meant point 5.

5 is an interesting one -

5 - "In certain circumstances we may return balance transfers that result in a large credit on your account back to your other card provider."

I hope what they mean is "a large credit balance" on the account, rather than "a large credit transfer" to your account. If it is the former, that is a reasonable condition to lay down - you don't want credit cards issued by you to get into huge credit balances. However, if it means the latter, it is just a step to stop recycling debt altogether once it is transferred onto the Halifax card.

realaledrinker

deemy2004 wrote:

Yeh its the 2% that will reduce the return on stoozing on the halifax cards. Still that does leave 3% or so.

You basically can't make money on a card that charges 2% on a 6 month 0% deal.

2% on a 6 month deal equates in round terms to 4% per annum.

If you stooze onto a 5% savings account, by the time you take off the tax you only earn a net 4% (or 3% if a higher rate taxpayer)

Net result, maybe a few quid profit. Not worth the hassle.