Stuffed by Halifax One Card

gramtrad

Hi All,

This is my first post on this forum.

I took out a current account with the Halifax (a second account which I use in addition to my Lloyds TSB account) to pay my monthly bills. At the same time I was offered and accepted a Halifax One card.

I used the card sensibly, initially, for balance transfers and made sure that I paid the amount due, plus a bit more, on time, every time. I have never missed or been late with a payment.

Earlier this year, my credit limit was increased to some £9,600. Then, only a few weeks later, they reduced it to more or less the exact amount outstanding - without giving me any warning! When I queried this with them, they pointed to credit reference agencies, and said that they had received information which caused them to re-access my position.

I checked with the agencies (I subscribe to Experian) and quickly realised that the only thing that could have worried them was three credit searches for car finance, one offer of which I took up with Capital One. There are no missed payments or any other adverse information.

I complained bitterly to Halifax One - not so much about the reduced credit limit, but the way in which it was done. I could easily have been abroad or in a restauraunt trying to use the card and could have been left stranded.

Ok, you can see their point to an extent. Perhaps an unscruplulous card holder, if given warning, would simply go out and max the card. So, I suggested that what they should have done was to call me and get an assessment of my current situation - i.e. if I was abroad on holiday, perhaps they could then have taken a view on it. After all, I have been a customer of the Halifax in one shape or form for at least 15 years!

I also took them to task on the fact that they had made assumptions about my status. They do not know my currently salary, nor do they know my current commitments. I pointed out that in my particlular case, I had taken out a new car loan, but had also closed out two other car loans which would take at least a couple of months to reflect on my records!

But, I get no proper response. All I get back is "we are responsible lenders, etc" When I take that up with them, pointing out if they were responsible lenders they would not react in this knee jerk manner and they would base their decisions on a full appraisal of the facts.

My reasoning seemed to be beyond the capabilities of the staff responsible to replying to my letter and each time I make the clear points mentioned above, they come back with what appears to be "stock replies" - apologising for the inconvenience!

Anyway on 21st November my monthly statement arrived - boldly announcing that my credit limit had been increased by £1,000.

Result ? Er, no! My confdence restored, I decided to use thecard to pay for some blinds that I have ordered - some £440. The transaction, on 30th November, much to my embarrassment, was declined!! I called up Halifax One and asked them what was wrong. To my complete and utter astonishment, I was told that my limit had again been reduced - not by £1,000 but by some £1,400 ! They had pulled exacly the same trick again. This time reducing my limit by more than they had increased it. It then took them another 5 days to formally inform me in writing!

Natuarally, I have written once again and given them a roasting. I don't expect much by way of reply; they do not seem to get the point. How can anyone have confidence in an organisation or a card when they keep doing this. Someone at the Halifax needs to put their house in order. I have also written to the ombudsman but these guys seem to have less teeth than hens!


I certainly wont be using the card again and I have aleady made several negative recommendations against the card as well as taking two customers (my children) away from the Halifax.

I would strongly warn everyone against taking a Halifax One Card.

That said, is there anyone out there who can advise me what to do, please? Perhaps there is a Halifax person reading this.

Any useful advise would be appreciated. I want blood!

Dylanwing

Check this out-
http://forums.moneysavingexpert.com/showthread.html?t=458898
Basically, they can do this, they will do this, reason and logic are irrelevant, and they are into responsible lending now. Presumably they are admitting to years of irresponsible lending! They have even cut me from £200 to £170, so the Bank Execs can all sleep soundly knowing that Dylanwing has £30 less credit.:p

Mozette

Responsible lenders my @rse! T0ssers more like!!!

gramtrad

Dylanwing,

Thanks for the link. It made facinating reading. Clearly the subject has been well debated.

I like your idea of wasting their time. I think I will have a go at that.

Also, I glean from the threads that the dreaded computer is responisble for increasing and then reducing limits. With a bit of nifty timing, the next time that they put my limit up, I will execute a balance transfer to a safer card such as LLoyds TSB my own bank.

It brings it out in you, doesn't it?

Looks like the cards that are prone to messing with your limit are :
Halifax One
RBS Cards
Barclaycard
Sainsburys
Amex

Does anyone know of any others?

bigstevex

sorry if this goes off topic

i had a balance of 8600 on my mbna for about 3 months my limit is 8900, then i paid off ~2k and they cut my limit to 7300

I agree with the situation phone call, i took out a mortgage/loan/new mobile phone contract/bt/virgin media all in 2 months so i presume thats why they lowered my limit, but i earn ~50k a year which i can proove, my girlfriend and i can happily live off my wages and pay all the bills, yet on top of these earnings she earns 13k.

They just don't care, they just make you look stupid when a transaction is refused!

P.s this reduction came a week after they tried to up my interest rate from 6.9 to 17.9 (which they said was reasonable till i said, here's my debit card details, clear the card now lol, that was swiftly set back to 6.9% after a word with the manager)