Lloyds and Halifax change credit card repayment rules - make sure you don't overpay - MSE News

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Former_MSE_Callum
Former_MSE_Callum Posts: 696 Forumite
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If you've set up a direct debit to pay off your Lloyds, Halifax or Bank of Scotland credit card and then make a one-off additional payment, your direct debit now WON'T be adjusted - so make sure you don't overpay...
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'Lloyds and Halifax change credit card repayment rules - make sure you don't overpay
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  • Nasqueron
    Nasqueron Posts: 8,827 Forumite
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    It is a bit confusing, I did a BT for £1200 off my CC after the statement was done but before the payment day

    My direct debit is normally to pay off in full so it'll be a bit annoying if they take the full payment anyway with BT total next week as I'll be in credit on the CC so will have to ask for a refund
  • Neil49
    Neil49 Posts: 3,081 Forumite
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    This will cause issues for those who primarily use the Clarity card abroad for cash withdrawals and then make a bank transfer s few days later to minimise interest charges.

    Best option is to cancel your direct debit and just make a diary note to pay off by a certain day each month.
  • glider3560
    glider3560 Posts: 4,115 Forumite
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    One thing that's caught me out in the past is whether refunds back to the card count as repayments.

    With LBG (inc. Halifax), they don't. But with Nationwide, they do and they will lower your direct debit if made early enough in the month.
  • bd10
    bd10 Posts: 347 Forumite
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    I left feedback Halifax and discussed the risk of overpayment/positive balances with customer services. It is a group wide policy they said. But the representative did agree about the logical inconsistency for customers who pay the balance in full. Hopefully the MSE article might have them reconsider the new policy. Till then I have DD switched off.
  • dobsoncrew
    dobsoncrew Posts: 123 Forumite
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    I thought that this was the case anyway. My Halifax card has never reduced the DD amount so I just pay the DD when it's due. I have not recieved any of the changes, let alone by text. Another option is to put the DD to minimum if you want to pay off any early
  • Herbalus
    Herbalus Posts: 2,634 Forumite
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    Neil49 wrote: »
    This will cause issues for those who primarily use the Clarity card abroad for cash withdrawals and then make a bank transfer s few days later to minimise interest charges.

    Best option is to cancel your direct debit and just make a diary note to pay off by a certain day each month.

    This will only cause issues IF you carry a balance at your statement date. If you pay the balance off every few days the balance produced on your statement should be quite low.

    I am not sure why people would repay the full balance before the direct debit (if not a spending abroad case)? Seems a bit pointless if payment would be automatically taken anyway.

    Direct debits will lapse of unused for a period of time, like 13 months, so be careful to think it is there but may be ineffective if you always pay manually beforehand anyway.
  • 18cc
    18cc Posts: 2,120 Forumite
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    I wonder why they did this (don't believe it is to help people...)?

    In any case, this is the first I have heard of it - I've received no letters, emails or texts about it.
  • Yorkham
    Yorkham Posts: 5 Forumite
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    Well.
    For reasons I wont bore you with I needed to pay my Halifax Card off in full mid month EARLY.
    So I did - was unaware of the T&C changes! no letters here - after my manual payment the ammount due at end of month showed 0.0. Yes folks ZERO.
    I have a DD set to pay the balance have for years.
    So yesterday dear old Mr Halifax took the monthly balance again - sending me nearly 1K into overdraft.
    Ouch! beware!
    Why have they done this? -
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    At first sight rather a good way of sending the CC balance into credit and then blame it on the bank. Depends on whether they will still only Direct Debit no more than the balance of the account.
  • Nick_C
    Nick_C Posts: 7,459 Forumite
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    Herbalus wrote: »
    I am not sure why people would repay the full balance before the direct debit (if not a spending abroad case)? Seems a bit pointless if payment would be automatically taken anyway.

    Although I normally pay in full each month by DD, I sometimes make additional payments if I am spending a lot in one month and am in danger of hitting my credit limit.
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