Can Halifax do this?

chattychappy

Abbey1991 wrote: »

This seems misleading if they also have hidden T&Cs which say different.

You might have a good case for the Ombudsman.

Deleted_User wrote: »

They're not hidden. They're the ones the OP agreed to when they took out the card.

Abbey1991 wrote: »

Well there are two people just on this thread who say they misunderstood it, so perhaps not so clear.

The other thing is that monthly statements have less relevance now, if they are just a pdf, as people tend to just look at transaction history online, so the concept of a "statemented balance" may be a bit obscure to some people.

Actually I agree with Abbey1991. Indeed with some CCs it is not even easy to get to the statement. Halifax is better than some, but with my Tesco card it takes many clicks to get to the monthly PDF statement. Most cardholders have grown up in an online world rather than "batch processing".

This business of applying payments to statemented transactions first is against the spirit of the reforms to the "negative payment hierarchy". The OP experienced a form of "gotcha". Consumer credit is highly regulated. Just because something is in the T+Cs doesn't make it enforceable. If I was a compliance officer working for the T+Cs I'd advise staff to re-allocated payments such as these on request, rather than risk escalation to the ombudsman who might find the practice unfair. We've had these situations before - I remember the days when people were told that they had to pay a £25 late payment fee because it was in the T+Cs or that CPAs couldn't be cancelled with a CC, despite the Payment Services Regulations (and esteemed posters here) saying otherwise.

abz88

chattychappy wrote: »

Actually I agree with Abbey1991. Indeed with some CCs it is not even easy to get to the statement. Halifax is better than some, but with my Tesco card it takes many clicks to get to the monthly PDF statement. Most cardholders have grown up in an online world rather than "batch processing".

This business of applying payments to statemented transactions first is against the spirit of the reforms to the "negative payment hierarchy". The OP experienced a form of "gotcha". Consumer credit is highly regulated. Just because something is in the T+Cs doesn't make it enforceable. If I was a compliance officer working for the T+Cs I'd advise staff to re-allocated payments such as these on request, rather than risk escalation to the ombudsman who might find the practice unfair. We've had these situations before - I remember the days when people were told that they had to pay a £25 late payment fee because it was in the T+Cs or that CPAs couldn't be cancelled with a CC, despite the Payment Services Regulations (and esteemed posters here) saying otherwise.

In a specific case, you can't really compare different CC's. OP's issue is with Halifax and it is VERY easy to see your Halifax statements, its one of the main options on the App and Online banking, you don't need to search for it or click through multiple pages. Even if it was the case that OP somehow couldn't find their statements or using your cardholders have grown up on the online world argument, the App is very clearly set out to show Statement balance, Minimum payment, Due date, Statement date. Nothing in that is complicated, you wait until you have a Statement date and pay off the amount before the Due date.

They don't apply them to statemented transactions first, they apply them to the highest interest debts first which is exactly what they should do to help get people out of debt. However, you can't pay off an amount attracting the highest interest until it is actually earning interest, which doesn't happen until you have a statement.

It's not Halifax problem that people don't understand how the products they have taken out work, however, as others have said, OP should phone Halifax, explain their mistake/misunderstanding and hope they agree to help them out.

redux

chattychappy wrote: »

... but with my Tesco card it takes many clicks to get to the monthly PDF statement.

?

Once you're logged in, it's one click from the overall account summaries to the card account, then More and Manage account, and a link to the online statements is on the left

So 1 or 2 pages, or 3 or 4 presses. That's on a tablet. I've never tried on a PC, but I wouldn't be amazed if the More dropdown isn't needed and Manage account would show all the time, but maybe it is more complicated ...

chattychappy

abz88 wrote: »

However, you can't pay off an amount attracting the highest interest until it is actually earning interest, which doesn't happen until you have a statement.

Interest runs from the date of transaction (even for purchases). Only if the balance is paid in full would interest not be applied.

There is at least one card (?Nationwide) that DOES apply payments to purchases first whilst running a BT deal so you still get the benefit of the interest free period on purchases.

chattychappy

redux wrote: »

?

Once you're logged in, it's one click from the overall account summaries to the card account, then More and Manage account, and a link to the online statements is on the left

So 1 or 2 pages, or 3 or 4 presses. That's on a tablet. I've never tried on a PC, but I wouldn't be amazed if the More dropdown isn't needed and Manage account would show all the time, but maybe it is more complicated ...

Once logged in, 5 clicks for me. (On a PC with big screen).

1) You land on a screen which has a box showing Clubcard Credit Card, showing latest transactions and a box "who to call when your cat or dog's poorly". Nothing to say how to get your statements. But most would guess to click ">" in the CC box.

2) Then you get another box showing latest transactions, month-by-month. On the heading, it says "to download your transactions and statements go to "Manage Account". However this doesn't appear on the screen at all. There is a list on the right hand side: "Balance transfer, Money transfer, Direct Debit, More". Click on More.

3) Then you get "Manage Account". Click on this and you get a new screen with "online statements".

4) Click on "online statements".

5) Then you get a list of available statements. Click on the one you want.

Not saying you cant get them, but if monthly statements are supposed to be so important then I would like to see "Latest statement" on the landing page. Certainly in preference to pet insurance or a money transfer button. On your way to get to your statement, you are faced with "latest transactions", or a summary, or "monthly transactions". You can understand why that in an online way people never get as far as looking at their PDF statement.

Abbey1991

msallen wrote: »

The statement is very relevant, even if that fact doesn't suit your argument. It tells you the amount you need to pay (whether minimum or full) and by when, or if you have a D/D setup how much will be taken and when.

born_again wrote: »

WHAT :mad:

You should always check both transactions and statements. Quite often IMPORTANT ACCOUNT INFORMATION is included on the statement...:T

redux wrote: »

First you allege that something is tricky to understand.

Then you suggest the customer isn't obliged or likely to have read it anyway.

I agree that customers should read their statements and I think credit card issuers should send them in the post to make it easier. I also think credit card issuers should be careful about wording like:

“We use your payments to pay off balances at the highest interest first and so on down to balances with the lowest interest rates". and
"This means the more expensive balances are always paid off first."


because Sheila70 and others were re-assured by such wording but then found themselves paying unexpected interest.

born_again

Abbey1991 wrote: »

I agree that customers should read their statements and I think credit card issuers should send them in the post to make it easier.

Blame the "!Save the planet" for the demise of them and the fact that people do have a choice. If they choose online then they should be knowing where they are. Halifax & Santander both send a text to say new statement available.

Abbey1991 wrote: »

I also think credit card issuers should be careful about wording like:

“We use your payments to pay off balances at the highest interest first and so on down to balances with the lowest interest rates". and
"This means the more expensive balances are always paid off first."


because Sheila70 and others were re-assured by such wording but then found themselves paying unexpected interest.

That statement is true. As it relates to STATEMENTED transactions. NOT anything that happens in between them.
I never understand people that have a credit card and then pay it off as soon as they spend on it....
Totally pointless, might as well just use their debit card.

I agree there have been plenty of threads on the same subject. But in the grand scheme of people paying Credit Cards it is sub 1%. I hear this less than once a month at work.
People just need to use a credit card how it is supposed to be used.
Spend, wait for statement & pay it off in full or not. As they see fit.:T

Abbey1991

born_again wrote: »

I never understand people that have a credit card and then pay it off as soon as they spend on it....
Totally pointless, might as well just use their debit card.

The thing I like about credit cards is the cashback / hotel points / airmiles. I have been experimenting with Curve and Revolut as well.

Also for car hire and hotels, sometimes it's useful to have a credit card as they like to pre-authorise a high amount just in case something goes wrong - I'd prefer them to use the credit card company's money to do that than my current account balance.

abz88

chattychappy wrote: »

Interest runs from the date of transaction (even for purchases). Only if the balance is paid in full would interest not be applied.

There is at least one card (?Nationwide) that DOES apply payments to purchases first whilst running a BT deal so you still get the benefit of the interest free period on purchases.

Correct, it is calculated from the transaction date but it isn't attaching any interest until it is statemented and then overdue.

There may be other cards that do that, but OPs card doesn't and clearly says it doesn't in the T&Cs.

Amorallity

It's fine don't worry