Halifax ‘Payment Holiday’ interest error

RoyalBlueRose

Hi all, I’m completely new to the forum, but, I’m hoping someone out there can shed some light on an unusual situation I find myself in:

For a little background, I have borrowed far too much, due to various mental health difficulties that I am currently awaiting treatment for - these have mainly contributed to poor impulse control, and generally spiralling behaviour. 

Fast forward to now, I am getting back on track, and repaying as much as I can, when I can.

During the excessive borrowing/spending, I took out two loans with Halifax (one of which I have very recently paid off). 

Today, I have received two unexpected letters in the post - in May 2020, I requested a ‘Payment Holiday’, and Halifax have identified that they charged interest during that time, which they say they shouldn’t have done. I fully admit that I have been burying my head in the sand when it comes to borrowing, so I was unaware that this had happened - I am even unsure if that information is correct.

Regardless, Halifax say that a refund of the interest is due for both loans. It also says that an amount of £1.15 compensation interest is due on one of the loans only (which has also been taxed). For clarity - the interest refund amount is £162.85. The second loan has the amount of £197.73.

I’m mainly confused about the compensation (Halifax awarded it based on it taking 4 years to identify the problem). Is it supposed to be such a low amount? And why does it only apply to one loan, not both, when they both took as long to rectify? I’m anxious to challenge them, in case this is all a massive misunderstanding.

Grateful for any advice!

Brie

presumably one loan was for more than the other.  and the interest being charged at that time was very low.  There must be more information in the letters received.