Credit card balance cleared by Halifax

So I had accumulated a balance of around £10,000 on my Halifax credit card over the years, mainly making minimum payments, which were about 1% at the time, with an an interest rate of about 16.9%. About three years ago, Halifax notified me that I had been in persistent debt for 36 months and would suspend my card, offering a reduced interest rate of around 4% to help repayment.

Consequently, for the past three years, I've been paying a fixed amount well above the minimum, gradually reducing my balance to a little over £6000. However, last week, I noticed that my account balance suddenly showed zero, with a £6k transaction labelled 'An adjustment to your account' equivalent to the remaining outstanding balance. Initially, I suspected a mistake, or the possibility of the debt being sold to another company. Even if it was legitimate, I was concerned about potential implications such as a 'partial settlement' flag on my credit file. 

Then, this morning, I received the below letter from Halifax confirming that the debt had been completely paid off adding that it wouldn't affect my credit score. This still seems too good to be true. 

Has anyone else experienced something similar? Why would a credit card company write off a substantial balance when I was already on track to pay it off in the next 4-5 years? I have never missed a payment and have a 'Good' credit score.




Comments

  • marcia_
    marcia_ Posts: 3,134 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 14 March 2024 at 7:17PM
     That's brilliant especially if it won't show on your credit report. Banks can help people in persistent debt but this is nothing I've seen offered before 
  • Martico
    Martico Posts: 1,149 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Good to see, well done Halifax
  • sourcrates
    sourcrates Posts: 31,028 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Yes, doesn't happen every day, but sometimes banks take a commercial view and decide to write debts off.

    This can be for a variety of reasons, persistent debt rules being one of them.

    Congrats, one less thing to worry about.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Abbafan1972
    Abbafan1972 Posts: 7,123 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    My mortgage is with the Halifax - I’d love for them to clear it for me!  No chance though lol. 

    Congratulations! 
    Striving to clear the mortgage before it finishes in Dec 2028 - amount currently owed - £30,358.13
  • chimpette22
    chimpette22 Posts: 101 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    I've had the same thing, but haven't received a letter. I feel like I've won the lottery 
  • Was that Halifax also? Congratulations that’s great! 
  • maybe its because they shouldnt have even charged you 4% and have realised this and to avoid getting into trouble with the FCA have just cleared the debt?
  • I've had the same thing, but haven't received a letter. I feel like I've won the lottery 

    Hi there,

    Did a letter follow? My account has ‘disappeared’ from the app but haven’t received any comms. 

    The person I’m talking to online isn’t particularly useful. 

    Thanks! 
    2022 NSD: 0/20 
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