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Lloyds and Halifax change credit card repayment rules - make sure you don't overpay - MSE News

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in Credit cards
If you've set up a direct debit to pay off your Lloyds, Halifax or Bank of Scotland credit card and then make a one-off additional payment, your direct debit now WON'T be adjusted - so make sure you don't overpay...
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'Lloyds and Halifax change credit card repayment rules - make sure you don't overpay
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'Lloyds and Halifax change credit card repayment rules - make sure you don't overpay
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My direct debit is normally to pay off in full so it'll be a bit annoying if they take the full payment anyway with BT total next week as I'll be in credit on the CC so will have to ask for a refund
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Best option is to cancel your direct debit and just make a diary note to pay off by a certain day each month.
With LBG (inc. Halifax), they don't. But with Nationwide, they do and they will lower your direct debit if made early enough in the month.
This will only cause issues IF you carry a balance at your statement date. If you pay the balance off every few days the balance produced on your statement should be quite low.
I am not sure why people would repay the full balance before the direct debit (if not a spending abroad case)? Seems a bit pointless if payment would be automatically taken anyway.
Direct debits will lapse of unused for a period of time, like 13 months, so be careful to think it is there but may be ineffective if you always pay manually beforehand anyway.
In any case, this is the first I have heard of it - I've received no letters, emails or texts about it.
For reasons I wont bore you with I needed to pay my Halifax Card off in full mid month EARLY.
So I did - was unaware of the T&C changes! no letters here - after my manual payment the ammount due at end of month showed 0.0. Yes folks ZERO.
I have a DD set to pay the balance have for years.
So yesterday dear old Mr Halifax took the monthly balance again - sending me nearly 1K into overdraft.
Ouch! beware!
Why have they done this? -
Although I normally pay in full each month by DD, I sometimes make additional payments if I am spending a lot in one month and am in danger of hitting my credit limit.