Halifax card - repayment cover gotcha

bigandy_3

Last month I forgot to send a cheque to pay-off my Halifax Visa card statement. The amount owed was only £13.

I know I'm very lucky to have not been hit for a £25 late payment fee, but I was surprised to see that this month's statement contains a Repayment Cover premium of 78p, despite the amount owed being only £13. I always presumed these premiums were 2-3% of the amount owed, so I expected it to be only a few pence.

A quick look at the Halifax website shows that the repayment premium is "78p per £100 of the amount owed". So if I'd owed Halifax only 1p last month, they'd have still charged me a 78p premium !

Banks, eh? How do they ever make a profit ! :-)

Needless to say, I've just phoned Halifax and cancelled my repayment cover. I always pay my cards off in full every month (except when I forget), so don't need the cover anyway.

regards to all.

bigandy_3

I agree with you - the fact I missed my last payment isn't relevant to the premium being charged; it just meant there was £13 left outstanding on the account, and I was surprised to see this amount attract a premium of nearly 5% for the repayment cover.

System

Yet another one who doesn't read the terms and conditions.

If they had added it when you never wanted it, then there would be an issue.

It really amazes me that people don't read the terms and conditions, then have the nerve to complain about it when something happens that they don't like.