Halifax Clarity in credit

Jonathano · 20 October 2018 at 9:54AM

I paid of my card early, a few hundred pounds, but my direct debit still came out for the full amount, so I am in credit.
I thought that was not possible on a clarity card.....will I get penalised is some way.
I am going abroad in November to Morocco, and so will need to get cash out,,,,,
Can’t I simply take out those few hundred quid and pay no fees and interest
I ask as I know you are not meant to be able to do this.

[Deleted User] · 20 October 2018 at 9:58AM

As per your other post

https://forums.moneysavingexpert.com/showthread.php?t=5908540

chattychappy · 20 October 2018 at 10:20AM

You're not meant to put your account into credit.

It is a moot point whether you are breaking this rule if, having made a manual payment which doesn't put you into credit, a DD is then taken by the CC which does.

The reason for the rule is that deposit taking is governed by a different regulatory regime. Personally I don't think CCs will be worried by situations such as you describe unless it develops into a pattern of activity.

The question that often comes up is "can I put my Clarity/Zero into credit before travelling so I can avoid interest on ATM withdrawals". The answer comes back that you shouldn't do this and could get your card cancelled/blocked or the payment returned. I started a thread to discover what the real experience was and I don't think anybody reported a real experience of any action being taken against them. Certainly I've had a couple of positive balances through paying the wrong account by mistake/paying twice without an issue.

So, yes, go ahead with your plan. Or withdraw it now. Doesn't matter.

Personally I don't use DDs and it does get more tricky if you are mixing in manual payments.

pochisoldi · 20 October 2018 at 4:16PM

Jonathano wrote: »

I paid of my card early, a few hundred pounds, but my direct debit still came out for the full amount, so I am in credit.
I thought that was not possible on a clarity card.....will I get penalised is some way.
I am going abroad in November to Morocco, and so will need to get cash out,,,,,
Can’t I simply take out those few hundred quid and pay no fees and interest
I ask as I know you are not meant to be able to do this.

Direct debit payment requests are sent by the requester (the credit card co) on the second working day before the day the direct debit comes out.

If you make a period during that time, the direct debit will go out at the same amount regardless.

For credit cards that reduce the direct debit as a matter of course, this will result in the direct debit not reducing.

For Halifax etc, it means that exception to the "we won't reduce your direct debit" rule* won't kick in and you will go into credit.

PochiSoldi

A4445 · 20 October 2018 at 5:17PM

I’ve had letters, emails, texts and messages online about the change. They’ve given plenty of warning about the changes to DDs!

Jonathano · 20 October 2018 at 5:58PM

I’ve had those texts to, but I rang Halifax to check, and they said that that applied only to those who have fixed amount direct debits, not to people like me who has one that pays of the whole amount....though may be it was wrong advice from them. I paid in well over two weeks before the direct debit was due.
Anyway, it works out well for me. From the replies I have had, it seems I will be fine, and can get cash out on hol completely fee and Interest free...whoopee

Halifax Clarity in credit

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free