Halifax and upping the minimum monthly payment

[Deleted User]

It's not related to PPI. If they wanted to make more money out of you, they would keep your minimum payments as they are.

This is about trying to align all customers to the minimum regulatory requirements for new accounts.

PeacefulWaters

They will make less profit out of this change.

Customers will pay less interest.

Economise. Pay what's due and then some. You'll be better off in the long run.

MABLE

Lloyds are doing the same thing with their Avios card. I have been paying the min of 2 percent on the outstanding balance but from July will be cut to 1 percent. I have about £8500 on this card and promotional rate was 1.3 percent fee plus 0 percent for 18 months. So for me its brilliant as it allows me to keep more money back until the time comes to pay it off in full.

andyfromotley

Although a bit painful for those being changed now all in all this is a good thing.

PurpleHat

Yes it is a big increase, and the letter isn't clear on the rights the card holder has - whether they can close the account, and continue to pay off at the current terms, as with interest rate hikes, meaning they no longer have access to the credit, but still pay off the card with the terms they have at the moment.

It is a massive jump to people, and you're right, life happens. In spite of never missing payments, it's the interest rate that often means some people can't pay more than the minimum, yet they can't move to cheaper balance transfer.

PurpleHat

Thank you for your reply. Yes it was opened before 2011.

AcN_2

To follow up on my previous post, I just got off the phone with them as I was worried about being unable to make the new increased minimum payment and long story short, we agreed that the credit card account would be closed and I would continue to make the minimum payments that I had been making previously.

PeacefulWaters

PurpleHat wrote: »

Yes it is a big increase, and the letter isn't clear on the rights the card holder has - whether they can close the account, and continue to pay off at the current terms, as with interest rate hikes, meaning they no longer have access to the credit, but still pay off the card with the terms they have at the moment.

There are no rights.

It is a massive jump to people, and you're right, life happens. In spite of never missing payments, it's the interest rate that often means some people can't pay more than the minimum, yet they can't move to cheaper balance transfer.

This will help you pay less interest.

PurpleHat

Not if the person can't pay the new minimum payment, it won't. And I meant rights as in whether they could take the option to close the account and continue paying at current terms - not to avoid paying the debt, which the person in question is not arguing with.

PurpleHat

Thanks for your reply. Will they be letting you pay off at same minimum - though you'll obviously try to pay more? Is there a set time, or are they being more reasonable in the timescale? If you don't mind me asking. Thanks.