credit card- really struggling to make a dent!

milobrulee

I'm not sure this will immediately help with the situation, but I discovered a Halifax account still open when I looked into my credit file. It was an old current account from 5 years previous that I thought I had closed. I had no details other than my name, the branch it was opened in and the rough time I would have requested it closed.

I just wrote Halifax a letter with all the information I had including my addresses over the years and they closed it.

sourcrates

So let me get this right,

You've been paying £330 a month, for 5 years, and your balance has only reduced by £196 ?

I think they saw you coming, i would cease payment immediately, as your basically throwing money away.

Send a written complaint to the Halifax, stating you have more than repaid this debt, and expect your balance to be reduced to zero as the interest you have been paying is beyond extortionate.

Another point to note, they may state the account is closed, however they are obligated under the consumer credit act 1978 to provide a statement of account at least once every six months, for as long as a balance remains.

Failure to do so renders the account unenforceable for that period, they cannot charge you interest or any other charges for the periods no statements were available, basically it sounds like the Halifax have !!!!ed up big style here, you have numerous avenues of complaint.

michellejm

sourcrates wrote: »

So let me get this right,

You've been paying £330 a month, for 5 years, and your balance has only reduced by £196 ?

I think they saw you coming, i would cease payment immediately, as your basically throwing money away.

Send a written complaint to the Halifax, stating you have more than repaid this debt, and expect your balance to be reduced to zero as the interest you have been paying is beyond extortionate.

Another point to note, they may state the account is closed, however they are obligated under the consumer credit act 1978 to provide a statement of account at least once every six months, for as long as a balance remains.

Failure to do so renders the account unenforceable for that period, they cannot charge you interest or any other charges for the periods no statements were available, basically it sounds like the Halifax have !!!!ed up big style here, you have numerous avenues of complaint.

Not quite, it's been £196 in the last 6months, 2k in the lAst 5 years. I I just never really can get my head around APR, and felt really ashamed of getting myself in this hole. It was only when I put my figures in the minimum payment versus fixed amount cc calc that I realised those figures seem wrong. Maybe they've kept upping my APR?
Would i just write to the complaints department? Do I insist that they provide written evidence justifying these costs? Thanks

OneLife_OneShot

I'd look into this, no way would I be paying £330 a month and not even seeing a statement. Not a hope in hell.

michellejm

OneLife_OneShot wrote: »

I'd look into this, no way would I be paying £330 a month and not even seeing a statement. Not a hope in hell.

I am planning to look into it, but these things make me nervous, so I just want to know my rights and whether they are misshandling this before I go in. I think they must have raised my APR to 25% at some point. But they say they don't know what it is as apparently my account number got changed at some point and the woman I spoke to had to call back and forth to another department who said they can only see 6 months of records and no APR! But apparently everything is as it should be. 💁

sourcrates

Consumer Credit Act 1974

1974 c. 39 Part VI Section 77A

(6)Where this subsection applies in relation to a failure to give a statement under this section to the debtor—

(a)the creditor shall not be entitled to enforce the agreement during the period of non-compliance;

(b)the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; and

(c)the debtor shall have no liability to pay any default sum which (apart from this paragraph)—

(i)would have become payable during the period of non-compliance; or

(ii)would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).

http://www.legislation.gov.uk/ukpga/1974/39/section/77A

sourcrates

The section above is the important part.

The way to tackle this, is in a strongly worded letter to them, stay off the phone, the call handlers only know what the screen in-front of them tells them, you need the organ grinder, not the monkey.

Point out your concerns firstly, be concise, just the facts, then tell them what you expect them to do about it, for example, refund of interest, balance written off etc, (dont ask, dont get).

Mention the lack of statements, mention also sec 77a, sub sec 6 (above) they will be well aware of the legislation.

Ask them how they intend to deal with this, they should refund all interest from those periods, say if you are not satisfied you will be going to the financial ombudsman service for resolution.

michellejm

Thank you so much sourcrates, that's really helpful. I'll let you know what they come back with.

Kitten868

In my experience halifax complaints are good. They respond really quickly. I would write out a complaint on their online form on their site. I find phone calls you just get endlessly passed around but this way the right person calls you. They will give you a response, if you don't like it go to the FOS. Yes you can just not pay but you don't want to hurt your credit file. I would want and expect the loan to be cleared and closed and a lot of compensation. Best luck sweetheart.

sourcrates

michellejm wrote: »

Thank you so much sourcrates, that's really helpful. I'll let you know what they come back with.

No problem, so few people are aware of there rights in regard to account statements.

I particularly dislike large organisations running rough shod over people who like yourself, are only trying to do the right thing.

Good luck with it, and i hope you take them to the cleaners.