Help! Halifax blocked my credit card account!

herkules

Hello All,

I made a balance transfer by mistake to my Co-Op card from Halifax. I wanted to make it from Barclays, but I gave Co-op the Halifax Clarity card number. When I realised, I went to Halifax to withdraw cash from the Clarity card, as it is free, and wanted to make a payment to Barclaycard. On the Halifax card the limit is £2800 but I made a transfer of £5500 from it. Hence, the Clarity card went into credit. Halifax froze the account and took my card when I wanted to take out the cash. On the top of this, I am only a secondary cardholder on the account, my wife is the main. The Co-op card is on my name. I was told that I need to proove where the money came from. If I don't, they just close the account and put the credit balance into a holding account. If I can provide, they release the funds but I cannot get cash, they send it back to Co-op. Today we called again and asked them, they said they can send a check after prooving the money. But all the accounts with Halifax will be closed as my wife is a High Risk. She also has a One card with them and a reward current account. Can Halifax do this? Don't they see that the money was coming from an other credit card hence it cannot be money laundering or fraud? We are really !!!!ed off with Halifax. Please give me some advice, as I am not sure if they can legaly do this to us.

Regards

Herkules

[Deleted User]

It's against the t&Cs of just about all cards to put them into credit and many will close the account as a result of the breach.

You don't have much of an argument against their actions.

herkules

Deleted_User wrote: »

It's against the t&Cs of just about all cards to put them into credit and many will close the account as a result of the breach.

You don't have much of an argument against their actions.

And can they close the other credit card as well? An the current account?

Thanks

bengalknights

herkules wrote: »

And can they close the other credit card as well? An the current account?

Thanks

If its in there T&Cs yes

rb10

herkules wrote: »

Don't they see that the money was coming from an other credit card hence it cannot be money laundering or fraud?

Money laundering and fraud can both be performed through credit cards.

A large credit to a card with a small/zero balance would certainly be seen to be suspicious by most banks.

herkules wrote: »

We are really !!!!ed off with Halifax.

Remember that it is your mistake that caused this!

I would suggest that you politely explain your error to Halifax, and go along with what they ask you to do to unblock the card.

They are certainly entitled to close any account that you hold with them.

Oli.s

Money laundering rules are very strict and just because its from another credit card doesn't mean its always legit, they can get in big trouble if there not careful and I suspect it's much easier to just hold the money and close the account than it is for them to investigate, harsh on you but easy for them.

Fraudsters often move money around accounts to create a long trail knowing that the more banks the money goes through, the more banks the police will have to go to, and often get court production orders for to trace the money.

Remember that although the bank know where the money has been transferred to them from, but have no idea of its history, they could be 2nd in the chain or 100th.

You would like to thing common sense would prevail after a call to them from you advising of the mistake but obviously not.

Sstripey

Best of luck, but I agree with the above posts - there's probably no option apart from graciously taking your medicine, and any advice they offer.

Gromitt

If you had rang up Halifax and explained the mistake, asking them to bounce the payment back to the source, it probably would have worked without any issues. The problem was that you put the card massively into credit (nearly double the credit limit) and then went into branch to withdraw it. That will ring alarm bells in most banks and instantly put the account into stop whilst its investigated.

dalesrider

herkules wrote: »

Hello All,

Halifax froze the account and took my card when I wanted to take out the cash. On the top of this, I am only a secondary cardholder on the account, my wife is the main.

No wonder they took the card off you.
That smacks of fraud/Money laundering all over.

You need to get main card holder to sort this out.

Expect some serious earbashing to go with it as well...:rotfl: