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  • FIRST POST
    • garland
    • By garland 3rd Jan 18, 10:25 PM
    • 11Posts
    • 1Thanks
    garland
    Charges on top of charges
    • #1
    • 3rd Jan 18, 10:25 PM
    Charges on top of charges 3rd Jan 18 at 10:25 PM
    I am asking on behalf of a friend, who has a Halifax credit card, she had a letter to say that she had gone over her credit limit, by 200 quid (the reason was that she had gone over and they had charged her fees for going over and adding fees on top) and was told the amount she needed to pay, she paid over the amount, and had not used her card since, she had a text message this week to say that she had gone over her credit limit, and needed to pay the amount she had gone over (129 quid asap).


    My question is, can you be charged a fee that makes you go over your credit limit, and then the company charge you for being over credit limit, even if it is there charge that makes you go over.


    I hope this is clear, I was under the impression maybe wrongly or rightly, that they could not put more charges on your account that makes you go over your limit, and then charge because you have gone over the limit, although I can not find where I saw this info, it was a long time ago.


    it does seem unfair that there charges push you over the credit limit, then they put a 12 pound fee on top for going over your limit, I understand they need to make money.


    I would be grateful for any info on this, or if Martin Lewis himself has any answers.
    Thing is the local branch is now closed so to keep going into the nearest town to go into a branch is costing her money each time.


    Thanks.
Page 1
    • venison
    • By venison 3rd Jan 18, 10:36 PM
    • 2,160 Posts
    • 2,306 Thanks
    venison
    • #2
    • 3rd Jan 18, 10:36 PM
    • #2
    • 3rd Jan 18, 10:36 PM
    To save going to a branch she can phone the number on her statements, if she goes over her limit she will be charged (£12 usually) and if the charge takes her over the limit then she will be charged, she needs to make a payment that will take her well under her limit.
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    • Kim_13
    • By Kim_13 3rd Jan 18, 10:49 PM
    • 1,901 Posts
    • 2,035 Thanks
    Kim_13
    • #3
    • 3rd Jan 18, 10:49 PM
    • #3
    • 3rd Jan 18, 10:49 PM
    Sadly charges can be and are applied in this way.

    There will be a section in her terms and conditions allowing the charge and charges being applied on charges. Interest will be due on the amount and it's likely to have been this which has tipped her over the credit limit for a second time (though check that there have been no forgotten transactions or fraudulent transactions on the card in the intervening period.)

    Credit cards have trailing interest so there will be interest to be applied until two consecutive statements have been cleared in full. Trailing interest is accrued because the balance that is attracting interest accrues further interest in the period between the statement being produced and the payment being made.
    Sealed Pot 11 #520 ~ /£100
    VSP 2018 #9 ~ £19.55/£180.00
    CCCC 2018 #1 ~ £20.75/£180.00
    • chattychappy
    • By chattychappy 4th Jan 18, 12:18 AM
    • 6,805 Posts
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    chattychappy
    • #4
    • 4th Jan 18, 12:18 AM
    • #4
    • 4th Jan 18, 12:18 AM
    Credit cards cannot charge interest on overlimit/missed payment/default fees until 28 days after you've been told of the fee (ie you've seen it on a statement). In any case, this is in the Halifax T+Cs and also Barclaycard's.

    I don't think in this case it's charges or interest on charges that has put your friend over the limit. I'm guessing she went over limit and paid enough to bring the balance below the limit, only for interest to be applied (on the balance) which put it above the limit again.

    If this is the first time she is into charges, there is a good chance Halifax will refund on request if asked nicely. Most CCs seem to do this.

    I'm afraid your friend needs to understand what is really happening here. What is the balance, what is the monthly interest rate? Don't want to sound patronising, but she needs to be able to anticipate what the interest will be. Bear in mind that the minimum payment is in addition to any overlimit amount that must be repaid immediately. The figures didn't quite make sense to me.
    • tight4rse
    • By tight4rse 6th Jan 18, 2:08 PM
    • 25 Posts
    • 2 Thanks
    tight4rse
    • #5
    • 6th Jan 18, 2:08 PM
    • #5
    • 6th Jan 18, 2:08 PM
    I'd tell your friend to be careful in future and leave a buffer zone between the balance and the credit limit to avoid any future charges taking her back over the limit.

    My strategy for dealing with this would be as follows:

    1.) Contact Halifax and ask them exactly how much she needs to pay to prevent any further credit limit breaches and subsequent charges. Then pay it. This puts the onus on them to tell you what you need to pay to prevent any further charges. If any subsequent charges then take you over the limit again, youv'e got grounds for complaint because you relied on their information.

    2.) I would ask them very nicely to refund the charges as a gesture of goodwill under the circumstances. It does seem harsh to be charged further overlimit fees as a result of interest and overlimit fees taking you over the limit. The call centre staff you speak to are very likely to fob you off. Ask to speak to a manger if you're not happy and then make a formal complaint if still not happy and go to the ombudsman if they stick to their guns. Large companies usually back down regardless of who is right and who is wrong if you kick up a fuss.

    3.) Be more careful next time and don't let it happen again.
    • boo_star
    • By boo_star 7th Jan 18, 7:16 AM
    • 1,513 Posts
    • 852 Thanks
    boo_star
    • #6
    • 7th Jan 18, 7:16 AM
    • #6
    • 7th Jan 18, 7:16 AM
    I!!!8217;m confused.

    How did she end up £200 over her limit? And why, after paying that off was she £198 over her limit the next month? Did she just stop paying the bill or something?
    • dresdendave
    • By dresdendave 7th Jan 18, 3:19 PM
    • 762 Posts
    • 931 Thanks
    dresdendave
    • #7
    • 7th Jan 18, 3:19 PM
    • #7
    • 7th Jan 18, 3:19 PM
    Iím confused.

    How did she end up £200 over her limit? And why, after paying that off was she £198 over her limit the next month? Did she just stop paying the bill or something?
    Originally posted by boo_star
    Remember that this is the OP's version of her friend's version, so we may not be getting the full chain of events.
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