halifax stopped by credit while in USA

marnie19

I have a Halifax Clarity card which I use overseas, as recommended by MSE. Just before our family holiday I checked the credit and there was plenty for our expenses while in USA. A week into the holiday I got a text message saying my credit limted was reduced to £500.I had already put about £350 on the card. Panic! In USA without a credit card and no explanation. I had always paid off this card each month IN FULL. The text said - for details call this UK number. Well it toook three transatlantic calls totalling 67 minutes to eventually get it sorted. Eventually my orginal credit limit was restored after much heartache and worry and valuable holiday time.
On our return to the UK I had no desire to tell the story to a call centre. There is no email address for Halifax. I put it in writing, twice, on their web site. They were automaticaly acknowledged with a promise to call me in 48 hours; I am still awaiting.
I wrote to the CEO of Lloyds Banking Group.

Their explantion is - at the ned of March I applied to increase my credit limit on a totally separate card to buy a used car for my son. The limit was increased immediateley over the phone. The transaction appeared on the April statement and was paid off IN FULL on 4 May. My credit with the Halifax was withdrawn three weeks after the other credit card was paid in full. The Halifax say that the information from their Credit Reference Agencies is 6 to 8 weeks behind real time. Really? In this day and age? Really? Do Halifax put their reputation in the hands of their sub-contrated credit agencies.

Just beware that it might happen to you

shortcrust

Credit can be withdrawn at any time for any reason. It happens all the time and often the only reason given is 'account review'. They haven't really done anything wrong - their money, their choice - although I can see how frustrating it must have been.

It's very sensible not to rely on only one card if you're away from home.

[Deleted User]

They will look at your credit availability, utilisation, affordability, and if they decide they are giving you too much they can reduce it.

It's their call

T-G-C

I have heard about Haliax doing this on a whim for some people, I certainly wouldn't use them in the future, mainstream or not.

[Deleted User]

67 mins to sort out is hardly the end of the world OP

Ben8282

It is not unknown for a lender to reduce a credit limit. It is just very unfortunate that this happened while you were on holiday.
However, for a mainstream lender to suddenly reduce a credit limit to £500 on a properly maintained account which is used and paid in full every month is somewhat unusual and something must have given them significant cause for concern for them to have done this. The strangest thing is that they agreed to reinstate the original credit limit so quickly.
A balance appearing on another credit card should not have triggered this action or at least not at this stage. If the balance had remained on the other card for some time with minimum payments being made on a non-promotional rate balance then perhaps. but the simple appearance of this balance with no other indication of serious ffinancial stress should not have concerned them to that extent.

BoGoF

So hopefully the lesson learned is don't go to a foreign country with one source of funds.

And yes it can take weeks for your credit file to update.

fudgecat

Ah, dear Halifax. Ended and cancelled 0% card last year (paid off in full) by phone and was told I could immediately apply for another Halifax card on a 0% deal - I qualified. I was advised to apply online as it was much quicker than all the questions by phone. Applied on online - rejected. I have banked with them for 30 + years, have savings accounts, insurance, etc. Telephoned - was told they could not give an explanation, put it in writing. I did. Told to go into branch with letter (reply to complaint) and they would make arrangements to give me £1000.00 credit limit. I felt the tone of the letter was grudging! Applied to MBNA 0% offer on line and had immediate acceptance with credit limit of £5000.00! I took it. Had cause to go into branch about 6 months later and was asked why I didn`t have a Halifax credit card. Explained. Manager looked at my account record and expressed incredulity - offered me a card there and then at 0%. Told him I no longer needed it...

System

It's not unknown for people who have 'travel' credit cards that they only use abroad. It's been on here more than once.

It's always good to have a few backups due to hiccups.

MEM62

T-G-C wrote: »

I have heard about Haliax doing this on a whim for some people, I certainly wouldn't use them in the future, mainstream or not.

I am sure that an institution such as the Halifax does not make decisions based on a 'whim'. And the fact that the customer is not always aware of the basis for the decision does not make it so.