Halifax still applying interest.. (Posted to CAG, too)

Splather

Hi guys

I am enquiring for a friend (no, really!).

They went to Stepchange (back when they were CCCS) about four years ago, multiple debts with different creditors.

It's just the Halifax I want to get some help with.

Stepchange managed to get Halifax to freeze the interest, but then they started putting it back on again a year later. Friend was a bit too frightened to deal with it, so asked Stepchange to step in.

Stepchange recommended friend contact Halifax themselves to plead their case for freezing the interest. Several letters were sent over the last 4 years, asking to freeze the interest, which has sent the debt spiralling out of control. No responses from Halifax.

The initial debt (from what we can work out from the Stepchange statements) was £6400. Friend has now paid Halifax £5600. With the interest, Halifax are claiming friend still owes £6100, in comparison to the £800 on the Stepchange statement.

This has my friend at their wits end, and prompted them to write a letter to the complaints department, outlining how this was out of control and affecting them both financially and in terms of their wellbeing.

Halifax wrote back(!), explaining that they only ever agreed to freeze the interest for 12 months (friend was not aware of this), and offered to refund the last 3 months interest and overdue penalties to "help".

My friend has an opportunity to try and borrow some money from family, but it won't be anywhere near what they're asking as there are others to pay, too.

Is there any mileage in asking the Halifax to remove the interest from the figure in order that my friend can offer F&F?

Any official way they can put it that carries weight?

Any advice you could offer would be really much appreciated. Many thanks!

fermi

I've just highlighted this thread on the DMP & Mutual Support Thread - Part 9. If anyone has some suggestions, then the posters on there will.

Thrifty_Pixie

it might be worth asking Halifax for a detailed statement of your account so you know exactly what is interest and what not.

also i would send a letter to the complaints department of StepChange if they hadn't made it clear the interest was only frozen for 12 months.

Splather

Many thanks guys, I'll pass this advice on tonight (and thank you for moving the post to where it will get more exposure, much appreciated!)