Halifax credit card - sequence of payments

Puddylove

Hi
I've got a Halifax credit card with two balance transfers on it.
The first was for £4.5k, for 21 months, the second for £1.5k for 9 months, at 0% interest.
I assumed that the last one would be paid off first by my monthly payment of £250, and I'd therefore be able to pay it all off without interest becoming due.
However, the statement shows they are paying off the larger balance transfer. Is this correct?
Thanks for any help.

[Deleted User]

What do their terms say about two promotional deals? The most common way is that payments are allocated to the one that ends first, but I don't believe that is universal.

What are the end dates?

phillw

Puddylove wrote: »

However, the statement shows they are paying off the larger balance transfer. Is this correct?
Thanks for any help.

The rule is that you pay off the cheapest debt first, but they are both 0% & so other rules apply.
This article from 2011 covers the different rules each bank uses https://www.lovemoney.com/news/10922/credit-cards-that-bend-the-rules. It doesn't cover two 0% balance transfers, but it looks like Halifax went for oldest first. You could try calling them and asking them, but they may just confirm what the statement says and tell you that it's part of their T&C. Ask them if they can change which debt gets paid off and reallocate the payments already made. Tell them it wasn't made clear when you did the balance transfer and say "I wish to make a complaint as the way you allocate payments is unfair". Say you want a response in writing.

If you don't get anywhere then you should only pay the minimum (£60??) and save the money elsewhere. A week before the 0% expires phone them and ask them when you can make a payment so that it comes off the correct balance without you having to pay any interest as you are worried about doing it right, write down the name of the person you speak to and what they said. If they say there is no day that you can pay off that part of the balance without being charged interest then tell them it's unacceptable and you wish to complain. This is a different complaint to the earlier one, so ask for a response in writing. But still find out the earliest time their system will allow you to clear that part of the debt.

Phone back on the date they told you and make a payment from your Halifax current account and ask them to confirm again that it will come off the correct balance and not charge you interest. If they won't confirm it then complain, if the first person told you different then tell them. If they do confirm it then write down their name and what they said.

Then look for interest, if you get charged then phone back and ask why you were charged interest. Tell them that you phoned on the date that Halifax told you and say it's unacceptable that they would tell you to phone on a date that would cause you to pay interest. Again ask for a response in writing.

If you end up being charged interest no matter how much you complained then it gets trickier and will depend on how much effort you want to put in. But for making a couple of phone calls, you have nothing to lose. Make it seem like you're prepared to go all the way, but you need a balance of politeness, worry, naivety and dis-believing (that they could run their company in that way) to get the best results.

Puddylove

Thank you both.
The end dates are not visible anywhere at all (I've looked) but if memory serves, the 21 month BT runs until the end of next year, the 9 month BT is up at Christmas.

I just assumed they would pay it in the way that would minimise my interest (Pah, I'm so trusting!).

I'm not sure I have the energy to engage them in a war of polite attrition; I have an empty Barclaycard, and am 'Pre-approved' for a 40 month BT from MBNA and a few others when I used the MSE Eligibility thingy so I will do that or pay it off.

Dissppointing, though.

Cell

From the back of my Halifax statement:

If there is more than one type of balance at the same interest rate, they are paid off in the following order: cash
transactions, purchases, balances transfers and money transfers (if available) and then default charges (plus any
interest or charges incurred as a result of those balances). For each type of balance, your payments will pay off the
oldest balance (and related fees, charges or insurance)first.

Puddylove

Thanks, Cell.

That explains it. Grrr.