Requested Mortgage payment Holiday given credit card
Julesanne
Posts: 6 Forumite
in Credit cards
Not sure where best to post this question? Any advice is appreciated -
In 2005 I was employed on a supply contract through an Education Employment Agency, I became very ill & was unable to continue my job & I had no income other than a small pension from former employer.
I contacted my mortgage provider the Halifax to request a 3 month payment holiday due to my illness & they rejected it but said they would offer me a credit card to use instead ( I had never had or wanted a credit card before) they said I could have the credit card instead.
I am still paying this off to this day & I do feel this was missold due to the fact I already informed them I had no income due to illness.
I would really appreciate any advice as I still feel strongly about it being missold, I did try to complain before but they only treat it as ppi miss selling which was not the issue.
Many kind regards
Jules
In 2005 I was employed on a supply contract through an Education Employment Agency, I became very ill & was unable to continue my job & I had no income other than a small pension from former employer.
I contacted my mortgage provider the Halifax to request a 3 month payment holiday due to my illness & they rejected it but said they would offer me a credit card to use instead ( I had never had or wanted a credit card before) they said I could have the credit card instead.
I am still paying this off to this day & I do feel this was missold due to the fact I already informed them I had no income due to illness.
I would really appreciate any advice as I still feel strongly about it being missold, I did try to complain before but they only treat it as ppi miss selling which was not the issue.
Many kind regards
Jules
0
Comments
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Complain to them by all means.
But what were your plans to repay the payment holiday debt?
What was the rate for purchases on the credit card at the time of application?
A 0% credit card can be cheaper than a mortgage if you repay before the free period expires. It also isn't secured on your home.
Statute of Limitations may come into play.20050 -
If they sent you a credit card you didn't want, why did you go ahead and use it? Surely you could have just chopped it up and thrown it away?
That said, as already pointed out, a credit card used wisely can help you get through a short term cash flow situation at minimal cost, certainly a much better option than the likes of pay day loans.0 -
Thanks for replying, - At the time I didn’t know how long I was going to be ill for & the payment holiday would have been kept on the mortgage loan & paid ongoing, the credit card issue confused me as a few years after I was told that if I was a risk at the time Re: Mortgage payment holiday which was not in the mortgage agreement & had no income or benefits then I was a bigger risk with a credit card & shouldn’t have been offered it, they literally put me straight through from the mortgage department & said credit cards were better option for me- at that time I only had a small mortgage & no other loans but no income due to illness.0
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Just ask yourself one thing - what would have happened if they had refused the mortgage holiday and not given you a credit card?
How would you have survived then?0 -
I had lost my supply teaching assistant role immediately I became ill due to the type of contract it was which is what I explained immediately & asked for help from my mortgage provider who couldn’t help or advise but maintained I would be best helped by their credit card team, but to answer your question I would have been 4/5 months behind on my mortgage payments but I wouldn’t have had the worry of clearing a credit card debt on top of that & being a single parent who was very ill & not knowing when I would be able to return to work. I suppose I’m trying to work out if it was ethical in 2005 to sell a credit card when the person had no income & had informed the bank of this whilst asking for help to deal with meeting mortgage payments whilst ill. Sorry if I sound daft but looking back & trying to understand why they would do that.0
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Remember that they only provided you with a card as a credit facility. When they gave you the card, the balance was zero.
The decision to run up a balance was yours.0 -
Did the credit card have any 0% or low APR offers attached?0
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It's impossible for us to tell, given that we weren't there and don't have all the information.
I have some thoughts though:
Unsecured credit debt such as a credit card is often seen as 'safer' than secured debt such as a mortgage.
They may have helped you keep your house.
Penalties on mortgages can / could be really steep, with a lot recovery fees added on in addition to the missed payments. That could have been costly.0 -
Did you have a high loan to value on your mortgage?
They might not have been able to provide a payment holiday.0 -
Why are you querying it now after 13 years ? I can't see why you think what they did was wrong ? You needed access to money, they gave it to you. If you didn't want the credit card you could have refused it.0
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