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

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  • Nick_C wrote: »
    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.
    Yes its called FLEXIBILITY something which Lloyds have decided isnt important
  • Nick_C wrote: »
    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.
    Anthorn wrote: »
    At first sight rather a good way of sending the CC balance into credit and then blame it on the bank. Depends on whether they will still only Direct Debit no more than the balance of the account.
    My account balance was 0 = ZERO 11 days prior to the DD date.
    I made a payment of £1600 to clear it mid month.
    Then Halifax took the balance from 11 days previous ie £1600 again.
    The t&c change will IGNORE ANY INTERIM PAYMENTS - even if your account has ZERO balance!
    I suspect the changes are to do with staff reductions - branch closures - and cost saving.
    Imposing such an inflexible condition on customers is all about the state of Lloyds group not a benifit for customers.
    My solution was to open a Santander 0 card which has the same currency benifits as my Halifax card did with added flexibility.
  • VortigernVortigern Forumite
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    Yorkham wrote: »
    My account balance was 0 = ZERO 11 days prior to the DD date.
    I made a payment of £1600 to clear it mid month.
    Then Halifax took the balance from 11 days previous ie £1600 again.
    Did you make any purchases after the statement date and before the DD date?

    Does your card now have a positive balance?

    It's been suggested elsewhere on this board that Halifax will still amend the DD amount to avoid creating a positive balance. I've had a quick look at the T&Cs and at my last statement. I can't see anything to support that suggestion, but it may have been mentioned in a mailing that I can't find.
  • Vortigern wrote: »
    Did you make any purchases after the statement date and before the DD date?

    Does your card now have a positive balance?

    It's been suggested elsewhere on this board that Halifax will still amend the DD amount to avoid creating a positive balance. I've had a quick look at the T&Cs and at my last statement. I can't see anything to support that suggestion, but it may have been mentioned in a mailing that I can't find.
    I made a few hundred pounds in purchases - after the DD was taken my available to spend ammount was higher than the card credit limit!!! so yes I was lending to Lloyds!
  • badmemorybadmemory Forumite
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    I have just re-read what the letter notifying me of this said. It is as usual as clear as mud. I think a note explaining the implications may well have been a good idea. This is softspeak for why on earth didn't they!



    These days this will not affect me, but back when I was buying £2k worth of replacement hearing aids for my mother every 6 months it would have done.


    Not sure how this will affect the many DFWs who pay off small amounts throughout the month. I do hope they have taken note of this or it could be serious for them!
  • VortigernVortigern Forumite
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    europaea wrote: »
    I'm a bit confused... my Clarity card is set for minimum DD payments and it has a £0 balance.

    So if I use my Clarity card abroad then pay the card in full before the DD date, it means no payment will be taken, am I right?

    If your statement says a payment of £xx.xx will be taken by direct debit on dd/mm/yy then that payment will be taken on that date, even if you've already made a payment manually.

    If you haven't had a statement giving you notice of a DD payment then they can't take such a payment.
  • edited 30 September 2018 at 3:29PM
    YorkhamYorkham Forumite
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    edited 30 September 2018 at 3:29PM
    If you haven't had a statement giving you notice of a DD payment then they can't take such a payment.[/QUOTE]

    So how come I had £1600 taken by DD to pay an account with zero balance - 11 days after I made a manual payment and the online account said ammount due 0.00 -?
  • VortigernVortigern Forumite
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    Yorkham wrote: »
    "If you haven't had a statement giving you notice of a DD payment then they can't take such a payment."

    So how come I had £1600 taken by DD to pay an account with zero balance - 11 days after I made a manual payment and the online account said ammount due 0.00 -?
    Perhaps you are confusing the Statement Balance with your online balance.

    The statement is produced on one specific day each month, shows your balance on the statement date, and tells you how much will be collected by DD and when it will be collected. Possibly you get a paper statement posted to you.

    Your online balance is update more frequently, but it's not a statement balance until the next statement date.

    If you go online, you can download/view a .pdf copy of your last statement and it will tell you that a DD for £1600 will be collected on a specified date.

    So, what was your balance on your last statement date?
  • Shakin_SteveShakin_Steve Forumite
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    MBNA have always done this. When you make a debit card payment online or through the app, it warns you that your direct debit will still be taken. If you try to change the direct debit to, say, minimum payment, it will tell you it won't take effect until after your next statement.
    I came into this world with nothing and I've got most of it left.
  • ScoobyZScoobyZ Forumite
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    Why not set Direct Debit to minimum payment. Then pay off mid term to avoid interest.

    So I use abroad.

    Balance is £800.

    I pay £800 when I return.

    They then take minimum payment of 1% £8.

    I'm £8 in credit and minimal interest.
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