Help Please!! Halifax increased charges since my claim!

AliceBanned

I have had an arrangement on a Halifax Credit card which is in default and registered as such on my credit file. I have bumbled along repaying the small sum of £10 per month and they agreed to stop charging interest about two years ago, as it was in default and I agreed to repay it on this condition (they had charged me previously for missed payments so the debt spiralled and was at about £1,500).

I have just started the process of reclaiming the charges (I have no idea how much they are yet) and really because I want to improve my credit file and in the future apply for a mortgate. I fully intend to use the reclaimed charges to repay my debts, including this one. I sent letter 1 using the template from this website, 5 weeks ago, and have heard nothing and not received statements yet - but will contact them after the 40 days are up. HOWEVER, to my horror I received a statement today and suddenly the arrangement seems to have disappeared. I have phoned and they can't give me a reason, they claim I defaulted in February, but I dealt with that at the time - I think the real reason is because I am going to reclaim the charges, and they know they will have to pay out, so they are trying to recoup now. So this month I owe £30 more than I did last month, despite sticking to the previous arrangement I had with them! They have charged me a "cash" and a "purchases" charge - totalling £17 - yet I don't even have a card! I don't use the account, and am paying it off at a slow but steady pace. Would they do this?! Has anyone else had this experience? I'm scared, because I am claiming the charges because I went into debt at the time as a part time student, and had to give up my course as the debt level got too much for me, and the credit cards in particular were costing me a fortune (I needed them to live off in emergencies - crazy I know - would never use the again). I am now scared that they are going to continue to punish me; although i may reclaim some charges, maybe £300 or more from Halifax, this will take a while, and for now I am now paying higher charges and being asked to make a higher minimum payment each month, which due to other debts, I simply may not be able to do!!

I know this is more about debt repayment than reclaiming charges, but just wondered if anyone thought it could be linked/has had the same. Otherwise I'm confused as to what on earth is going on!!

Many thanks to this site, but it's a tough life with these banks... has driven me to despair and depression in the past, and I thought there was light at the end of the tunnel.

Twinkly

AliceBanned wrote: »

I have had an arrangement on a Halifax Credit card which is in default and registered as such on my credit file. I have bumbled along repaying the small sum of £10 per month and they agreed to stop charging interest about two years ago, as it was in default and I agreed to repay it on this condition (they had charged me previously for missed payments so the debt spiralled and was at about £1,500).

I have just started the process of reclaiming the charges (I have no idea how much they are yet) and really because I want to improve my credit file and in the future apply for a mortgate. I fully intend to use the reclaimed charges to repay my debts, including this one. I sent letter 1 using the template from this website, 5 weeks ago, and have heard nothing and not received statements yet - but will contact them after the 40 days are up. HOWEVER, to my horror I received a statement today and suddenly the arrangement seems to have disappeared. I have phoned and they can't give me a reason, they claim I defaulted in February, but I dealt with that at the time - I think the real reason is because I am going to reclaim the charges, and they know they will have to pay out, so they are trying to recoup now. So this month I owe £30 more than I did last month, despite sticking to the previous arrangement I had with them! They have charged me a "cash" and a "purchases" charge - totalling £17 - yet I don't even have a card! I don't use the account, and am paying it off at a slow but steady pace. Would they do this?! Has anyone else had this experience? I'm scared, because I am claiming the charges because I went into debt at the time as a part time student, and had to give up my course as the debt level got too much for me, and the credit cards in particular were costing me a fortune (I needed them to live off in emergencies - crazy I know - would never use the again). I am now scared that they are going to continue to punish me; although i may reclaim some charges, maybe £300 or more from Halifax, this will take a while, and for now I am now paying higher charges and being asked to make a higher minimum payment each month, which due to other debts, I simply may not be able to do!!

I know this is more about debt repayment than reclaiming charges, but just wondered if anyone thought it could be linked/has had the same. Otherwise I'm confused as to what on earth is going on!!

Many thanks to this site, but it's a tough life with these banks... has driven me to despair and depression in the past, and I thought there was light at the end of the tunnel.

I would write and demand full explanation in writing as to why the account repayment arrangement has changed and also full explanation of the 'new' charges being placed on the account. It is not acceptable and subject to complaint to the FO that they have not informed you in writing. For now I would maintain your previous £10 per month arrangement and state that you cannot pay more. Any debt repayment is based on your income and outgoings and whilst they may threaten further recovery action they cannot force you to pay more.

Check any written communication between you when you defaulted in February very carefully. If you have not further defaulted and they accepted that the arrangement continue then they have no reasonable grounds to withdraw the arrangement. I would take this matter to the Financial Ombudsman stating you think their actions are in retaliation for reclaiming charges. Please dont be put off reclaiming them, this bank needs putting back in its place and quick and I hope that someone else can offer you some more advice on the subject. Get absolutely every communication between you and the bank in writing from now on and dont rely on telephone calls. They can deny them. Best of luck

Tootsie_Roll

Twinkly wrote: »

If you have not further defaulted and they accepted that the arrangement continue then they have no reasonable grounds to withdraw the arrangement.

Why can't they withdraw the arrangement ? People often forget it is a concession only and can be withdrawn at anytime - in my opinion it is understandable in this case.

Twinkly wrote: »

I would take this matter to the Financial Ombudsman stating you think their actions are in retaliation for reclaiming charges.

Again jumping the gun. It would be much better if you checked your facts before giving inaccurate and unreliable advice - these are peoples lives that may suffer.

AliceBanned

Tootsie_Roll wrote: »

Why can't they withdraw the arrangement ? People often forget it is a concession only and can be withdrawn at anytime - in my opinion it is understandable in this case.



Again jumping the gun. It would be much better if you checked your facts before giving inaccurate and unreliable advice - these are peoples lives that may suffer.

Thank you both for replying - I have been away for a few days and only just received these messages. When I returned home I had voicemail messages every day - from the Halifax! Looks like they go into overdrive and yes, it is retaliation. On the other hand, it was a concession, Tootsie Roll is right, and I had this for a couple of years so have benefited and paid off quite a bit over this time. I now owe them £1000 and am aiming to repay another chunk once I get the charges paid back to me! So even though they are now charging me interest, thinking about it I may not suffer too badly - but I will have to see - and I will consider the FO if they get ridiculous -thanks for this advice, as they made me panic a bit!

They should have informed me in writing, I agree; they claim they did but they keep trying to do everything over the phone. It is a bit shady, but I wasn't all that surprised; they gave me a "concession" and I slapped them in the face; but only because they made a lot out of me in charges before the concession. I think I am repaying £20 a month now on the card, (interest added) so it will make it harder to repay, but I can afford more than £10 a month, which I couldn't at the time of the original agreement. They just never bothered to look at my account to update it - until I started the reclaiming charges process! Clearly an act of retaliation but not much I can do, unless they get ricidulous and charge me too unfairly; I will stick with it and wait for the repayment to roll in!

thanks for the advice.

AliceBanned

Many months later and this has been resolved. I gave up trying to get any sense of Halifax, and sent a complaint to the Financial Ombudsman. Two weeks later Halifax phoned me to apologise. They said they had sent a letter to inform me but it must have gone missing. The post is a bit unreliable here I must admit. They therefore agreed that I had not defaulted on my payments as I hadn't had prior warning,so they are going to amend my credit file, which is the main thing. Also they explained that they have changed their policy about freezing interest and will not exceed six months. Which is fine. I have applied for my charges the other day, as they also finally sent the bank statements I requested. All of this was actioned as a result of the Financial Ombudsman getting on to them - all they do is forward a copy of the complaint direct to the bank - it kicks !!! because it's from them. Simple. Takes a few months but works, if anyone is thinking of it! The banks simply can't ignore a complaint from them.

borgbaiter

hi

are you aware you can reclaim late payment and overlimit charges on credit cards as well as bank charges. in for a penny in for a pound as youve already annoyed them ;-)

Borgbaiter

AliceBanned

Long time for a reply but just an update - still waiting!!Yes am claiming charges on Halifax credit card - must be at least nine months since I initially requested statements. They sent a supposedly terrifying lol legal looking letter about the test case. The court put a stay on it, even though it is credit card charge so doesn't apply. They will stop at nothing - this is nothing more than a barefaced lie to the court!! I have written to the court and they sent it to my local court with a request to lift the stay. I phoned the court last week and they said it is with the judge and I should hear next week.It is a small amount of money, that's the funny thing! It is about £135 and Halifax are pulling out all the stops - delay, lies, everything over that. Maybe they think i would just give in as it isn't thousands of pounds, but I'm not one to give in lol.

bathgatebuyer

Stick with it - they're full of bluster and bull!

AliceBanned

bathgatebuyer wrote: »

Stick with it - they're full of bluster and bull!

I knew they would give in! They've offered to repay the full amount including the cost of my MCOL claim. The local court had in fact put in hold because of the test case, but I wrote to the court and Halifax using Martin's template letter saying that I would officially try to get the stay lifted, as it is not a bank account, it is a credit card! A few days later I get a letter saying they are going to pay up. They are paying it back on to my card but I'm not going to quibble about that; I'd rather have the cash but i'm paying the card off anyway, and as this has gone on for nearly a year now I don't care as long as I get the charges back. Puts me in a better position to repay this debt!