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

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  • Ben8282Ben8282
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    paulsad wrote: »
    Just got caught by this on one card - paid card off fully then set payment of £80 went out too - I do still use this card so it's not a biggie. I've got a Lloyds card that I have just settled (well transferred -77p) and that was set to take out my usual set £100 as well; I've changed it to min payment and once I see its settled I'll manually pay off the remaining .77p and hopefully be in time to cancel the dd. I think its a bit naughty and will put people off DD or using their cards.
    Needs to be said it'll only apply to the current issued statement but it does lead to faffing about if you need to get your money back on a card you no longer want to use.

    This is a very old thread. Post before yours wa made in Feb. The information about direct debit payments not being reduced has been shown on statements for months now.
  • Nick_CNick_C Forumite
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    Ben8282 wrote: »
    This is a very old thread. Post before yours wa made in Feb. The information about direct debit payments not being reduced has been shown on statements for months now.

    I don't think the wording on the Lloyds statements is particularly clear. The only reference to the effect of additional payments on top of direct debits that I can find is as follows:-
    If you have missed a payment and not brought your account up to date, your Direct Debit will reduce by any payments you've made in that statement period (if received 2 clear working days before your payment is due).

    Although if you make an additional payment using Lloyds Online Banking, you are warned at that stage that your DD will still be taken.
  • It is clearly designed to discourage early repayment by Direct Debit. I believe it is an abuse of the Direct Debit scheme. Surely, the amount taken should be the amount owed, and not an amount that the bank feels is "Helpful to customers with large balances". I have filed a formal complaint with the Financial Ombudsman (I have some expertise in this area !). My case is open, and I will post the results here.
  • EarthBoyEarthBoy Forumite
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    Surely, the amount taken should be the amount owed

    The amount taken is the amount owed, as at the statement date.
    I have filed a formal complaint with the Financial Ombudsman (I have some expertise in this area !). My case is open, and I will post the results here.

    I look forward to reading your post where you tell us that they dismissed your complaint.
  • bd10bd10 Forumite
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    Hi all,

    could anyone confirm the following:

    The last time I spoke with Halifax to cancel my direct debit to make a manual payment, the lady from the call-centre said they would only allow 3 manual payments during the month. I went through the T&C of the Clarity Card and statements, I cannot find this max 3 payment "rule" anywhere.

    Is there anything to it? Was she right or just trying to discourage card holders from maximising their utility from the card at their expense?
  • edited 9 November 2019 at 7:33PM
    Ben8282Ben8282
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    edited 9 November 2019 at 7:33PM
    bd10 wrote: »
    Hi all,

    could anyone confirm the following:

    The last time I spoke with Halifax to cancel my direct debit to make a manual payment, the lady from the call-centre said they would only allow 3 manual payments during the month. I went through the T&C of the Clarity Card and statements, I cannot find this max 3 payment "rule" anywhere.

    Is there anything to it? Was she right or just trying to discourage card holders from maximising their utility from the card at their expense?

    Never heard of it. Also would question the legality of refusing a payment to a credit card account.
    Of course. most people with direct debits don't 'cancel' the direct debit to make manual payments nor do they make in excess of three of them in a month. Not really sure what maximising the utility of the card at their expense means.
  • The point of paying early is that Halifax will put the interest rate up from March by 50% to 19.95% on cash withdrawals. They don't allow early cash transfer off the current month so you have to pay interest.
  • Nebulous2Nebulous2 Forumite
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    bd10 wrote: »
    Hi all,

    could anyone confirm the following:

    The last time I spoke with Halifax to cancel my direct debit to make a manual payment, the lady from the call-centre said they would only allow 3 manual payments during the month. I went through the T&C of the Clarity Card and statements, I cannot find this max 3 payment "rule" anywhere.

    Is there anything to it? Was she right or just trying to discourage card holders from maximising their utility from the card at their expense?


    Yes I've heard of it. In fact it happened to me this summer that I was refused a debit card payment as I had made my maximum number allowed. I posted about it here.

    https://forums.moneysavingexpert.com/showthread.php?p=76272807#post76272807

    There are different ways of making payments however and the answer is to transfer money by faster payment from your bank account. They cannot stop that.
  • VortigernVortigern Forumite
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    The point of paying early is that Halifax will put the interest rate up from March by 50% to 19.95% on cash withdrawals. They don't allow early cash transfer off the current month so you have to pay interest.

    Wrong. If you make a cash withdrawal you can pay it off as soon as you like, after clearing statemented balance.
  • phillwphillw Forumite
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    EarthBoy wrote: »
    The amount taken is the amount owed, as at the statement date.

    Yeah, it's annoying they don't even take refunds into account though.
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