How Halifax Clarity Creidit Card now threatens to steal your money.

Worried_of_wakefield

Just spoke with Halifax today following several text reminders regarding the new procedure, he enquired how I used the card, which was to pay in full on my return from the sun,quite simply he has cancelled the dd but warned me I was now responsible for paying manually ( as I have always done) Simples!

polyphonic99

Deleted_User wrote: »

Yes, you've got it wrong.

They're not stealing your money.

The change means that the DD is still taken, bu the money is not stolen. It appears as a credit on your account, which will then be spent as you make future transactions. It could also be requested as a refund.

It may be annoying from your perspective, but it's not theft.

Do you work for Halifax/BOS by any chance?

Well in my opinion, when someone takes your money without your permission and with no claim on it, then that is theft. The only reason it is not theft technically is because of the DD mandate.


They want to take money that is not owed to them. I have already repaid them for what I borrowed on the credit card, they were then going to take a further £1000 of my money, simply because they have designed their systems to do that.

The money is removed from the current account that pays the DD which may well lead to cash flow issues for some people.

If I want a CC with £1000 of my money on as credit then I want to choose to do that myself, I don't want the CC provider making that choice for me.

I only use the Halifax card in Europe, not in the UK, and I won't be going back to Europe for 6 months, so it is of no benefit for me to leave £1000 credit on the card, it would be pretty dumb to do it wouldn't it..

I asked Halifax about a refund, they said the best option was to cancel the Direct Debit.

Thanks for your comments, but they ignore the change in policy from Halifax.

polyphonic99

buglawton wrote: »

I've been using Clarity abroad and getting cash on it there. In a previous discussion someone pointed out the 'trick' of paying off balances to avoid interest. In the end I didn't bother and allowed the DD to take care of it automatically. Paid around £25 for one holiday in interest, because a lot of businesses took only cash. But on other trips paid less due to using card most of the time to pay. I've calculated that even with interest I'm saving 3-4% in currency charges. Also having a separate travel CC is good for security and Halifax update the transactions in the app much more quickly than other cards, also good for peace of mind.

So even with the change, Clarity is still a good deal. But thanks OP for the heads-up.

I agree. The Halifax Clarity is a good card. Up until now you could use it in Europe for credit card transaction and cash withdrawals. I will still use it for transactions, but I won't mix in cash withdrawals anymore, but will use a separate card for that.

Nick_C

My strategy is only to use Halifax Clarity to withdraw cash, and pay it off immediately. I use a different card, with no foreign currency surcharge, for purchases abroad.

Its worth keeping a DD on the account for the minimum payment, to prevent you from failing to make the minimum payment on time.

But what Halifax are doing is not theft, and they did explain it in their revised terms and conditions which anyone still using the card has agreed to.

BoGoF

If you don't like it then move, really is that simple. You know you have lost the argument when you accuse people of working for Halifax.

redux

polyphonic99 wrote: »

I asked Halifax about a refund, they said the best option was to cancel the Direct Debit.

Thanks for your comments, but they ignore the change in policy from Halifax.

Actually the problem arises from you seeming to ignore the change in policy.

Their advice makes some sense; why have a direct debit set up for a card you only use irregularly, and then pay off manually almost immediately?

bd10

Accusing Halifax/BOS/Lloyd's of "stealing" or taking advantage, that's ludicrous and an unfair accusation.

If we look at the bigger picture, this step is not unexpected in my eyes. Unsecured lending has been on the rise and even the BOE is paying close attention to that. Instead of focusing on run-of-the-mill credit cards, the focus should in my opinion be more on zero percent cards and their variants. They are the real danger, again in my eyes. But that's a different story for another day.

So Halifax took steps to get card holders pay down their balances more quickly. A step I find sensible. When I discussed with with one of the CS reps two weeks ago they confirmed that this is a group wide policy. And if you look at an ordinary credit card, this does not create any hassle for day-to-day spending. This policy is just not suitable for the Clarity card given the way we here use it. That means we have to jump through a few hoops to reap all the rewards from this card. Well, if that's agreeable so be it, if not there are alternatives. It is not like this new policy rendered the card useless.

As disclaimer: I do not work for Lloyd's group but used to work in financial services.

[Deleted User]

polyphonic99 wrote: »

Do you work for Halifax/BOS by any chance?

No. Would that be the only reason why someone would believe something that is not theft is not theft?

polyphonic99 wrote: »

Well in my opinion, when someone takes your money without your permission and with no claim on it, then that is theft. The only reason it is not theft technically is because of the DD mandate.

So you agree it is not theft.

Do you work for Halifax/BOS by any chance?

guesswho2000

polyphonic99 wrote: »

Do you work for Halifax/BOS by any chance?

Well in my opinion, when someone takes your money without your permission and with no claim on it, then that is theft. The only reason it is not theft technically is because of the DD mandate.


They want to take money that is not owed to them. I have already repaid them for what I borrowed on the credit card, they were then going to take a further £1000 of my money, simply because they have designed their systems to do that.

The money is removed from the current account that pays the DD which may well lead to cash flow issues for some people.

If I want a CC with £1000 of my money on as credit then I want to choose to do that myself, I don't want the CC provider making that choice for me.

I only use the Halifax card in Europe, not in the UK, and I won't be going back to Europe for 6 months, so it is of no benefit for me to leave £1000 credit on the card, it would be pretty dumb to do it wouldn't it..

I asked Halifax about a refund, they said the best option was to cancel the Direct Debit.

Thanks for your comments, but they ignore the change in policy from Halifax.

ZX81 is spot on, and Halifax aren’t the only card provider to do this. As has been pointed out, the money is added as a credit to your account, if you need it, you can spend it or, given there’s no fees, you could even withdraw it from an ATM.

I’d say the best course of action is to canx the direct debit, if you only use it irregularly, then just make a point of paying it off at the end of each trip you make, or as you use it if necessary. If there’s any chance you’ll forget, set the DD to minimum payment, that way you don’t have the risk of forgetting to make the payment.

Alternatively, just leave it, and don’t make interim payments. Is it really worth bothering worrying about a couple of £ interest?

Entirely up to you how you proceed though, others are just offering comment on what you’ve asked.

redux

guesswho2000 wrote: »

I’d say the best course of action is to canx the direct debit, if you only use it irregularly, then just make a point of paying it off at the end of each trip you make, or as you use it if necessary. If there’s any chance you’ll forget, set the DD to minimum payment, that way you don’t have the risk of forgetting to make the payment.

Alternatively, just leave it, and don’t make interim payments. Is it really worth bothering worrying about a couple of £ interest?

Or as I suggested, leave the DD set to collect the statement balance, and make a separate manual in payment to cover just any cash withdrawal, not the full current balance at that point.

This could be done just after the DD has gone out; maybd earlier, for the sake of remembering, though doing it earlier doesn't save any interest (it also didn't on the old scheme).