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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
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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 before1
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Good to see, well done Halifax2
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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-letter2 -
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 - £30,358.134
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I've had the same thing, but haven't received a letter. I feel like I've won the lottery1
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Was that Halifax also? Congratulations that’s great!0
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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?0
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chimpette22 said:I've had the same thing, but haven't received a letter. I feel like I've won the lotteryHi 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: 0/200
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