Halifax grrrrr. How are these practices even allowed??

[Deleted User]

Heng_Leng wrote: »

Get her to phone Barclaycard & Nationwide and see if they have any transfer offers on her existing cards.

They may be able to offer her 0% or a lower rate than Halifax.

Indeed. Barclaycard seem to be offering a lot of "6.9% for life" BT offers to existing customers at the moment through their online service.

Nasqueron

I get 6 month BT offers with a 3% fee every 6 months - no real point as I don't want to pay off in just 6 months but could help save a bit - close the accounts if unused or pay minimum + £1 on those and make a big effort on the highest apr.

Alternatively, while it's rarely a good idea, if you have been together for a while and can make a proper binding agreement, if your credit is better then getting a loan and paying off her bills would save in the long run (but you would be at risk as the debt would then be yours of course)

planteria

Tixy wrote: »

Yes she can opt out of the rate rise. The letter should explain how.

It would mean that she can no longer use the card for new spending, but she can continue to pay off at the same rate she is doing now (and nothing will be recorded on her credit file).

that is good advice from Tixy. do that... and focus on getting that debt down, and cleared, asap. a. throw as much money at the account as you/she can each month and b. if & when you can, get it moved to a 0% deal.

InsideInsurance

NokSuCow wrote: »

Also, wouldn't hiking up the interest rate on a 'fairly bad credit risk' make them a higher credit risk?? Seems counterproductive to me.

Why do you think super prime cards are around 15% interest rates, prime cards around 20% and sub prime around 40%?

The bank is running more risk of default/ late payments etc and so needs to charge more interest to cover that additional risk in the same way an insurer will charge an 18 year old more premium than a 40 year old with the same car in the same street.

NokSuCow

PeacefulWaters wrote: »

The additional income generated exceeds the write-offs from non-payers in the same risk group.

So from a lender's perspective it's absolutely not counterproductive.

Your friend really needs to address those spending habits.

The majority of the debt was built up while she was going through cancer treatment and had to buy a new car so wasn't all wasted.

NokSuCow

Thank you for the feedback guys.

I'll certainly act on some of the suggestions.