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    • MSE Callum
    • By MSE Callum 22nd Oct 18, 11:47 AM
    • 487Posts
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    MSE Callum
    Halifax mortgage-holders to get cash back after interest error - MSE News
    • #1
    • 22nd Oct 18, 11:47 AM
    Halifax mortgage-holders to get cash back after interest error - MSE News 22nd Oct 18 at 11:47 AM
    10,000s of Halifax mortgage customers are to be given a redress payment of £20 after the bank uncovered an error in the way interest has been charged dating back eight years, MoneySavingExpert can reveal...
    Read the full story:
    'Halifax mortgage-holders to get cash back after interest error'

    Click reply below to discuss. If you havenít already, join the forum to reply.
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Page 1
    • glider3560
    • By glider3560 22nd Oct 18, 7:57 PM
    • 3,738 Posts
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    glider3560
    • #2
    • 22nd Oct 18, 7:57 PM
    • #2
    • 22nd Oct 18, 7:57 PM
    Are there any more details on the actual error (i.e. what do they mean by "not applied correctly")?

    I have a Halifax mortgage and overpay every month by standing order. I notice that some months the payment isn't credited until the next day, whereas it is same day on other months. Would this be related, since I've been overcharged by pennies?

    • margaretx9
    • By margaretx9 22nd Oct 18, 8:04 PM
    • 84 Posts
    • 63 Thanks
    margaretx9
    • #3
    • 22nd Oct 18, 8:04 PM
    • #3
    • 22nd Oct 18, 8:04 PM
    Wow a whole £20 - after they have presumably paid the bank tens of thousands and more in interest and principal over 8 years!
    • wizk1
    • By wizk1 22nd Oct 18, 8:27 PM
    • 889 Posts
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    wizk1
    • #4
    • 22nd Oct 18, 8:27 PM
    • #4
    • 22nd Oct 18, 8:27 PM
    Wonder if this also affects mortgage holders from other HBOS and former HBOS institutions. I'm looking at you, TSB.
    • DPS-2016
    • By DPS-2016 22nd Oct 18, 9:22 PM
    • 18 Posts
    • 23 Thanks
    DPS-2016
    • #5
    • 22nd Oct 18, 9:22 PM
    • #5
    • 22nd Oct 18, 9:22 PM
    Are Halifax guaranteeing that no customer has been overcharged more than £20?

    As someone who only recently moved away from Halifax and overpaid on many occasions over a number of years I'd certainly like to see the calculations!
    • PaulC5
    • By PaulC5 23rd Oct 18, 7:19 AM
    • 165 Posts
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    PaulC5
    • #6
    • 23rd Oct 18, 7:19 AM
    • #6
    • 23rd Oct 18, 7:19 AM
    I'd also like to know if we have been charged more than the £20 redress offer as we overpay by 35% every single month!
    • DarkConvict
    • By DarkConvict 23rd Oct 18, 8:24 AM
    • 6,248 Posts
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    DarkConvict
    • #7
    • 23rd Oct 18, 8:24 AM
    • #7
    • 23rd Oct 18, 8:24 AM
    I emailed MSE about this months ago. This was flagged by by the FCA as far as I know. I'm in a fortunate position to overpay my mortgage, and Halifax had said that all my over payments should goto my mortgage but some went to the mortgage account fee which was at 0%. Even if you overpay by £20,000 the mortgage account fee only drops by like £30 or so as its small compared to the main mortgage. So the amount of interest say 3.59% on £30 over 4 years is very low. They moved my overpayments to the main mortgage and paid out £20 to cover interest. However they then reduced my regular payment due to my overpayments so the mortgage term was unchanged. However my overpayment were made to reduce the term and keep the payments unchanged otherwise you end up paying more interest. Had to complain to the FCA who gave me a contact at the bank that agreed the regular payments should not have changed and a month later put them back to normal.
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
    • Edi81
    • By Edi81 23rd Oct 18, 8:28 AM
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    Edi81
    • #8
    • 23rd Oct 18, 8:28 AM
    • #8
    • 23rd Oct 18, 8:28 AM
    TSB was previously part of Lloyds TSB which is who bought HBOS of which Halifax is a trading style of its subsidiary Bank of Scotland.

    It doesn’t mention that Lloyds, C&G or TSB are affected.

    M
    • zx81
    • By zx81 23rd Oct 18, 8:32 AM
    • 21,132 Posts
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    zx81
    • #9
    • 23rd Oct 18, 8:32 AM
    • #9
    • 23rd Oct 18, 8:32 AM
    I'd also like to know if we have been charged more than the £20 redress offer as we overpay by 35% every single month!
    Originally posted by PaulC5
    No. You'll have been charged even less as you've been overpaying.
    • Thrugelmir
    • By Thrugelmir 23rd Oct 18, 10:19 AM
    • 62,450 Posts
    • 55,553 Thanks
    Thrugelmir
    TSB was previously part of Lloyds TSB which is who bought HBOS of which Halifax is a trading style of its subsidiary Bank of Scotland.

    It doesnít mention that Lloyds, C&G or TSB are affected.

    M
    Originally posted by Edi81
    Halifax mortgages would have been maintained on a seperate computer system at the time in question.

    TSB was absorbed by Lloyds many years ago. Simply ressurrected to enable the split out of Lloyds for the new entity imposed on the bank by the EU.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • PaulC5
    • By PaulC5 23rd Oct 18, 11:07 AM
    • 165 Posts
    • 210 Thanks
    PaulC5
    No. You'll have been charged even less as you've been overpaying.
    Originally posted by zx81

    Its the way they have added interest to people who have been making overpayments, therefore the more you have overpaid, the higher the incorrectly charged interest you have paid hence the £20 "refund" for there mistake!
    • cod3
    • By cod3 5th Jan 19, 3:48 PM
    • 693 Posts
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    cod3
    I phoned Halifax mortgages today about this and they had no idea what I was talking about.
    • cod3
    • By cod3 13th Jan 19, 4:05 PM
    • 693 Posts
    • 2,309 Thanks
    cod3
    Following my phone call to Halifax last week about the subject of this thread and the article from which it links, I have received this written response from them:

    "I confirm the £20.00 goodwill payment has only been given to customers who were charged the Mortgage Account Fee upon opening their mortgage and were affected by an error in the interest charged. As you have not paid or been charge the Mortgage Account Fee, you have not been affected and will not receive the £20.00"

    Does this sound right? I thought the error was for Halifax customers who "chose to overpay their mortgage, pay weekly or make one-off payments at any point since 2010 may have been charged too much interest due to the error." [from the MSE article] I made some overpayments in 2013.
    • davidmcn
    • By davidmcn 13th Jan 19, 6:09 PM
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    davidmcn
    I thought the error was for Halifax customers who "chose to overpay their mortgage, pay weekly or make one-off payments at any point since 2010 may have been charged too much interest due to the error." [from the MSE article] I made some overpayments in 2013.
    Originally posted by cod3
    I think you're overlooking the words "may have been". If you haven't then you haven't.
    • cod3
    • By cod3 13th Jan 19, 10:36 PM
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    cod3
    Hmmm...that's maybe the case. I am just suspicious that when I called, the Halifax staff member had never heard of the matter and asked several colleagues who were also clueless. The letter then mentions a Mortgage Account Fee which was not mentioned in any of the news articles last October.
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