What are the Rules of persistent debt and closure of credit card accounts

Yardski

I totally understand what everyone is saying about payments and debt, but i can assure you all i have a good credit score and I am not someone who runs up debt.
with this credit card i was not using it to make payments but also i was just paying it off.
yes i would be on the PD radar. Unfortunately i did not realise this, but saying that the bank did not give me correct or clear information about PD.
i did engage with them and raised my DD payments but within 2 months that amount was put up by £7. I did not receive any statements for 6 months so i did not know this had occurred.  I hold up my hands but the bank have said they made mistakes with the information given to me.
This is why i am interested in finding information and advice on persistent debt .
Thank  you all that have commented.

[Deleted User]

Yardski said:

I totally understand what everyone is saying about payments and debt, but i can assure you all i have a good credit score and I am not someone who runs up debt.

Your credit score isn't a factor in lending.  Lenders base their decisions on your credit management and will have see someone paying off debt at the slowest possible rate.

That's why they would judge you as high risk.

eskbanker

Yardski said:

I am not someone who runs up debt.
with this credit card i was not using it to make payments but also i was just paying it off.

If you don't run up debts, what is it that you've been paying off while not spending on the card?

Edi81

Persistent debt and credit cards has been a thing for at least 2/3 years. I’m sure you would have had letters about it previously - I know I did when I was on a promo
rate and was making min payments. 

Oh and forget about the good credit score those companies aren’t lenders. 

MalMonroe

Batesy1976 said:

Yardski said:

Thanks Matt i do understand your advice. It seems then that the banks can misinform customers and then close accounts with any redress to the consumer. Giving wrong and or misleading information should be challenged and I'm sure  somewhere in that document states ‘fairness’.
if i had raised my DD to £130 i doubt i would be in this situation and i would have transferred to a 0 % account to retain this credit card facility.

 

Why didn't you transfer to a 0% account already then?

That isn't always an easy option. You have to be accepted first and lenders aren't being as generous as they once were. Especially if someone is in PD.

born_again

So at no point in the last 2 to  3 years, have you received any letters about your PD?
Who is this provider?

Yardski

Hi @born_again
I recieved letters prior to January 2020.. and in the January I contacted Halifax to up my direct debit payments.
After January I did not recieve any paper information or online statements. So I was unaware of the raise of £7.00.
If I had been aware I would of changed DD. I have requested my SARs to check phone calls and data. 
So because I did not raise my DD payments to £127 from the March in November last year the credit card account was closed.
I have a complaint response from halifax which says they have offered poor customer service with the advice given but will not reinstate the credit card facility. 
I get what everyone is saying but regarding handling credit I do have properties and possibly this is why I did not see myself in a persistant debt position. 
My issue is that I was not given clear and concise information and have suffered due to this. This is why I am seeking advice regarding PD

Batesy1976

Yardski said:

Hi @born_again
I recieved letters prior to January 2020.. and in the January I contacted Halifax to up my direct debit payments.
After January I did not recieve any paper information or online statements. So I was unaware of the raise of £7.00.
If I had been aware I would of changed DD. I have requested my SARs to check phone calls and data. 
So because I did not raise my DD payments to £127 from the March in November last year the credit card account was closed.
I have a complaint response from halifax which says they have offered poor customer service with the advice given but will not reinstate the credit card facility. 
I get what everyone is saying but regarding handling credit I do have properties and possibly this is why I did not see myself in a persistant debt position. 
My issue is that I was not given clear and concise information and have suffered due to this. This is why I am seeking advice regarding PD

There's not really much point in seeking advice about PD.  Regardless of the rules/guidelines, nobody will force Halifax to take you back as a customer and I suspect any compo for them closing your account will be extremely limited given they've probably done you a favour anyway.

sonofmerton

Yardski said:

Hi @born_again
I received letters prior to January 2020. 
I do have properties and possibly this is why I did not see myself in a persistant debt position. 
My issue is that I was not given clear and concise information and have suffered due to this. This is why I am seeking advice regarding PD

I have dealt with people in persistent debt. It has nothing to do with how many properties or cars etc that someone owns. It is about being in persistent debt with the actual credit card. ie paying more interest and fees each month for at least 18 months than paying off the debt of the card (ie interest is £101 a month, amount paid to reduce the balance £99 = £200 a month). A millionaire could still be in persistent debt on their credit card and would suffer the same issue.

Several letters are sent out by banks/credit card companies which clearly set out what persistent debt is and the likely consequences of not increasing payments. The crux of your argument is you allege you were not told about having to increase the minimum payments by £7. If Halifax can prove a letter was sent in accordance with their persistent debt procedure for everyone then an ombudsman would generally take that as gospel. 

Closure of an account is something any provider can do regardless of whether someone is in persistent debt or not. No one has the right to a credit card, no matter how long a customer they have been or how long they have held a credit card for. 

Any compensation is likely to be a token one at the very best. My advice is to move on from the Halifax, find another provider and always pay more each month than is charged in interest.   

Yardski

I now understand what PD is and I also agree it's not about property or cars.. i was putting perspective to my answer. 
I did say earlier i didnt think i was in PD because i was paying over the minimum about towards my card.. but I know that would still not be enough towards repayment, interest etc.
I feel thou that i wasnt given clear and accurate information regarding PD as I did make a higher DD payment I had as requested engaged with the bank. I have been offered compensation for the bank poor service but feel the bank shouldn't have closed my account due to the advice they had given was insufficient and for the sake of £7.00 used PD as the reason for closure.