Halifax Makes No Sense

moggins

Due to some credit problems 5 years ago we've been stuck with a Cardcash account with the Halifax ever since, we applied for a current account a few months ago when we learned they were getting rid of the Solo card and got quickly turned down.

But today my DH went into the branch to pay in a cheque and they offered him a credit card! He told them that he probably wouldn't be accepted but was told that as it had flashed up on screen that he must be in a position to be accepted for it so they applied for him and he was accepted.

What is going on with them when they can give us a credit card but not a proper bank account with a Switch card? It's making no sense to me at all

bargains83

moggins wrote:

Due to some credit problems 5 years ago we've been stuck with a Cardcash account with the Halifax ever since, we applied for a current account a few months ago when we learned they were getting rid of the Solo card and got quickly turned down.

But today my DH went into the branch to pay in a cheque and they offered him a credit card! He told them that he probably wouldn't be accepted but was told that as it had flashed up on screen that he must be in a position to be accepted for it so they applied for him and he was accepted.

What is going on with them when they can give us a credit card but not a proper bank account with a Switch card? It's making no sense to me at all

I am in a similar position with Abbey at the moment and I don't have any issues with my credit history at all. Last July I asked them if they would issue me with a VISA debit card to replace my Electron one because im finding im using a credit card where I would normally use a debit card because many places still don't take electron and what else can you do if you aren't carrying cash?.

Anyway, they wrote to me saying No. It said in the letter as a general rule we require credits of at least £500/month before they will consider issuing a debit card, and the account must not be overdrawn (even authorised) for a period of at least 6 months.

Oddly enough, a few months before i asked for the debit card the bank gladly accepted my request for a £200 overdraft, which I still have available today and have only ever dipped in and out of it now and again. So in otherwords managed it perfectly. I would have thought an overdraft had more risk than a debit card but obviously the banks don't think the same.

I am about to write to them again asking if they will now consider issuing me with a Visa card and have outlined in my letter that I do have significant savings with them and do credit my account regularly.

davidcampbell

Anyway, they wrote to me saying No. It said in the letter as a general rule we require credits of at least £500/month before they will consider issuing a debit card, and the account must not be overdrawn (even authorised) for a period of at least 6 months.

thats correct, we will require regularly activity (usually 3-6 months of crediting minimum £500 monthly credits) before offering visa debit card.

its not a problem to be overdrawn if you have an authorised limit though (providing of course its within that limit).

overdraft broadly has same criteria however will be considered if credits not as much as £500 depending on credit scoring.

So in otherwords managed it perfectly. I would have thought an overdraft had more risk than a debit card but obviously the banks don't think the same.

no quite although its a reaosnable assumption.

if someone is going to go wild with a debit card (to the extent where we cannot recover the money - and this is what the risk is after all) then the impact will be the same whether they have an overdraft or not.

the problem with debit cards is people spending money they dont have (or having that potential at least) while with overdrafts the 'risk' is limited to the overdraft limit - not withstanding any lunacy on the customers part where they heavily exceed the limit - and how could they do this? - takes us back to the debit card.


hth
DC

Debt_Free_Chick

Have you asked if you can upgrade the account?

bargains83

davidcampbell wrote:

thats correct, we will require regularly activity (usually 3-6 months of crediting minimum £500 monthly credits) before offering visa debit card.

its not a problem to be overdrawn if you have an authorised limit though (providing of course its within that limit).

overdraft broadly has same criteria however will be considered if credits not as much as £500 depending on credit scoring.





no quite although its a reaosnable assumption.

if someone is going to go wild with a debit card (to the extent where we cannot recover the money - and this is what the risk is after all) then the impact will be the same whether they have an overdraft or not.

the problem with debit cards is people spending money they dont have (or having that potential at least) while with overdrafts the 'risk' is limited to the overdraft limit - not withstanding any lunacy on the customers part where they heavily exceed the limit - and how could they do this? - takes us back to the debit card.


hth
DC

Hi david, I've noticed your posts before and that you work for abbey and they have been very informative and helpful.

Am I doing the right thing in writing to the bank to ask for a debit card or should I just be asking in branch?.

I obviously prefer to write since it gives me a chance to express the way im managing my account better (whether it makes a difference or not). If I do ask by post, which address should I be writing to as I've noticed that they have several, presumably its the customer operations one in bradford?.

As I said before, the letter I got declining me was last July so thats 10 months ago now and It did say I was welcome to ask again after 6. Anyway my account has been well credited in those last 10 months, I haven't had any bank charges or gone over my overdraft limit and have only dipped in and out of that now and again so im hoping that this time round I will be able to get one.

davidcampbell

if you want to write, then customer ops in bradford is where to go yes. i would be inclined to say you may be as well phoning telebanking to get a quicker response or visiting branch as opposed to writing though.

the decision to upgrade is taken by our underwriters. they will make this decision based on how you run your account (plus any credit scoring done in the past) and no-one at customer service can change that decision without physically appealing it. therefore while a letter does allow you to make a case for upgrade its not necessary at this stage ... if an appeal is required can be done (but probably still not necessary).

from what youve said (credits close to if not in excess of £500 plus not exceeding limit in last 6 months) then there shouldnt be a problem.

my advice would be to phone or visit branch. let us know how you get on.


DC

Turning_into_scrooge

davidcampbell wrote:

if someone is going to go wild with a debit card (to the extent where we cannot recover the money - and this is what the risk is after all) then the impact will be the same whether they have an overdraft or not.

the problem with debit cards is people spending money they dont have (or having that potential at least) while with overdrafts the 'risk' is limited to the overdraft limit - not withstanding any lunacy on the customers part where they heavily exceed the limit - and how could they do this? - takes us back to the debit card.


hth
DC

So basically, the banks thinking is that consumers would go mad spending with a debit card but not a credit card sorry but what is the difference

M_Thomson

David,
Your posts have been very helpful to people, but I would just like to say be careful. I also work for a bank and I have seen some of the things you have written, not on this thread but others and I think you could be breaching your company internal procedures by revealing some of the confidential stuff about your bank you have posted on here.
To the person that asked why they could get a credit card, but not a debit card the simple answer to that is that with a debit card you are getting the facility to guarantee either 25 or 30 cheques for £100 each giving you either £2500 or £3000 credit. I should imagine the credit card had a smaller limit that that.

bargains83

Turning_into_scrooge wrote:

So basically, the banks thinking is that consumers would go mad spending with a debit card but not a credit card sorry but what is the difference

I think a part of it is to do with the cheque guarantee facility which the majority of debit cards offer these days. A £100 cheque guarantee card is a licence to print money if it landed in the wrong hands.

davidcampbell

partly to do with the cheq guarante facility scrooge. other than that i dont know enough to comment.

m thomson, anything in particular? i dont believe ive disclosed anything that isnt common knowledge? or at least anything that i wouldnt tell a customer.

DC

M_Thomson

davidcampbell wrote:

partly to do with the cheq guarante facility scrooge. other than that i dont know enough to comment.

m thomson, anything in particular? i dont believe ive disclosed anything that isnt common knowledge? or at least anything that i wouldnt tell a customer.

DC

There has been a few things you have written about things like credit scoring and about charge reversing procedures that I have seen you write that I know if my bank had found out I had written it would be at least grounds for a disciplinary. Please don't think I am being rude I am just giving advice thats all.