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

in Credit Cards
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  • tigerm25tigerm25 Forumite
    25 Posts
    Sixth Anniversary 10 Posts Combo Breaker Uniform Washer
    This morning I discovered the damage of this credit card rule change. Personally, it couldn't have come at a worse time for me. In the past I've often made big purchases on my credit card, waited until the statement arrive (which is often up to a month later), by which time I've been paid by my workplace, then I pay off the big purchase on my credit card. The remaining balance comes out of my direct debit at the start of the next month.

    Well this month, out of the £1100 on my credit card, £700 was spent on big purchases, an unusually high amount for me. As a result of carrying out the usual paying process outlined above I paid £700 4 weeks ago, and today I've paid £1100 on my direct debit which would usually have been £400, meaning I've shelled out £700 more than I expected I would.

    When you consider I only received notification of this rule change 3 days ago in the post, I feel very hard done by. There was nowhere near enough notice!

    I'm going to complain to Halifax now, but if this doesn't go anywhere, are there any suggestions for someone else I should contact?
  • northwalesdnorthwalesd Forumite
    694 Posts
    Part of the Furniture 500 Posts Name Dropper
    I've still had no notification from Lloyds about the change.
  • NasqueronNasqueron Forumite
    7.7K Posts
    I've still had no notification from Lloyds about the change.

    I don't think I got one either but I read about it on here and got a text as soon as I made a payment. Unfortunately my card is about 750 in credit now but Halifax are refunding it to my account shortly
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  • MABLEMABLE Forumite
    4K Posts
    Part of the Furniture 1,000 Posts
    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.

    At least with MBNA you could phone them and they would stop the dd being activated for that particular month if you have already made the required payment.
  • Penelopa.PitstopPenelopa.Pitstop Forumite
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    Part of the Furniture 1,000 Posts Name Dropper
    I got text message on 26/09 and it said reminder. Can't remember seeing actual information anywhere. It doesn't bother me, because I have 0% BT on it and pay set amount each month.

    But I woud expect 2 months notice at least for such change.
  • Lloyds and Halifax change credit card repayment rules - make sure you don't overpay - MSE News
    28th Sep 18 at 2:52 PM
    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...
    Read the full story:
    'Lloyds and Halifax change credit card repayment rules - make sure you don't overpay
    My immediate charge is regularly to satisfy in full so it'll be somewhat irritating in the event that they take the full installment in any case with BT add up to one week from now as I'll be in credit on the CC so should request a discount
  • mr_jrtmr_jrt Forumite
    57 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Really interesting reading people's experiences above. I once complained to Capital One because my card did reduce the DD, leaving me with a balance and meaning I was charged interest. I've always assumed the DD would stay the same and any manual payments would be additional, but then I have generally always paid off my balance in full when not stoozing.
  • 18cc18cc Forumite
    2.1K Posts
    It seems like the best thing to do is to make any manual payment before the statement is generated i.e. before your statement date as it seems that whatever it says on the statement will be taken by direct debit
  • edited 17 October 2018 at 5:14PM
    toshitoshi Forumite
    307 Posts
    Part of the Furniture Combo Breaker
    edited 17 October 2018 at 5:14PM
    I have changed the direct debit payment setting to minimum payment temporally, as I don't want to cancel the DD with Halifax to lose Reward (2 pound).

    I received a letter from Halifax to notify my change, Yes, Halifax actually intends to collect 9 pound against 0 pound outstanding. How odd they are! I will change back to payment in full again, (and they will send me another letter to notify me again !? What a waste.. )
  • LokoloLokolo Forumite
    20.9K Posts
    Part of the Furniture 10,000 Posts
    I had this issue this morning. Had no notice apart from a text last week saying any manual payments won't effect DD. Stupidly ignored it thinking it won't cause an issue.

    Credit card was £3,000. Now it is £3,000 in credit (I had paid it off manually weeks ago). They are reversing the transaction now.

    A stupid stupid change imo. It sounded though they've had a lot of complaints related to this.
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