Halifax Overdraft

[StereoRosex]

Hi All. Sorry I seem to be popping up all over the place since I have debts with quite a few creditors.

 

I received a letter today (I'm not sure how to attach?) stating they have accepted my repayment offer for 6 months, after the 6 months my balance is zero although technically I still owe circa. £2,400 on this account.

 

Does this mean they will be writing off the remaining balance?

[dx100uk]

scan it up

 

 

upload

[StereoRosex]

Ah, ok. It isn't letting me attach at the moment as I haven't enough posts. But I think I may have it via attachments?

[estellyn]

No they're talking about your overdraft limit reducing by the amount of your payments. If you're still using the overdraft on your account you need to check that it isn't really going to '0'. from the letter it looks like they may cancel the overdraft facility at that point, so you would need to make arrangements to use a different account by then with a different bank.

 

No, sorry, it doesn't say they're writing it off.

[StereoRosex]

No they're talking about your overdraft limit reducing by the amount of your payments. If you're still using the overdraft on your account you need to check that it isn't really going to '0'. from the letter it looks like they may cancel the overdraft facility at that point, so you would need to make arrangements to use a different account by then with a different bank.

 

No, sorry, it doesn't say they're writing it off.

 

I haven't banked with Halifax in over a year now. It just doesn't make sense to me as they have sent one letter stating they have put a temporary limit and this will be reduced, then this letter attached stating that as of 03/02/2016 the balance is £0?

[estellyn]

Yes, it's saying your usable overdraft facility will then be '0' on 3/02/16 and that until then the usable overdraft facility will reduce by your repayment each month. So you make the payment into the account, reducing the overdraft and the limit reduces to match the amount of the overdraft. It doesn't really make any difference to your payments.

[StereoRosex]

Yes, it's saying your usable overdraft facility will then be '0' on 3/02/16 and that until then the usable overdraft facility will reduce by your repayment each month. So you make the payment into the account, reducing the overdraft and the limit reduces to match the amount of the overdraft. It doesn't really make any difference to your payments.

 

So I am still to carry on with my repayment until the balance is cleared despite them saying it would be at £0 come February? Sorry if I am sounding a little thick, I've never received this sort of letter from them in regards to my payment plans.

[estellyn]

Maybe you got your wires crossed with them? They wouldn't just say 'make 6 months of payments and we'll write the rest off' it just doesn't happen.

 

Not knowing what they said on the phone, my best guess is crossed wires - they may have said balance would be '0' after 6 months meaning overdraft balance, but you heard it as debt balance.

 

The letter does state that the overdraft will be reduced to '0' not the debt, which makes sense - it's a pretty standard arrangement for someone paying back an overdraft while using the account. If you're not using the account, then it doesn't really matter, you still make payments, and before the 6 months comes to an end, a new arrangement to pay would be made.

 

My only question would be on whether charges and interest are being frozen while you make repayments, or whether they are still being applied to the account.

 

Did you have a previous payment plan?

[StereoRosex]

Maybe you got your wires crossed with them? They wouldn't just say 'make 6 months of payments and we'll write the rest off' it just doesn't happen.

 

Not knowing what they said on the phone, my best guess is crossed wires - they may have said balance would be '0' after 6 months meaning overdraft balance, but you heard it as debt balance.

 

The letter does state that the overdraft will be reduced to '0' not the debt, which makes sense - it's a pretty standard arrangement for someone paying back an overdraft while using the account. If you're not using the account, then it doesn't really matter, you still make payments, and before the 6 months comes to an end, a new arrangement to pay would be made.

 

My only question would be on whether charges and interest are being frozen while you make repayments, or whether they are still being applied to the account.

 

Did you have a previous payment plan?

 

Hiya,

 

I haven't spoken to anyone on the telephone at Halifax, I've done everything by letter so that it is recorded.

 

I've been in a repayment plan since around this time last year, originally with a fee-paying company (big mistake!) and now self-managed.

 

No, like you say I don't use the account so it doesn't matter either way, it just seemed abit odd that they would make it seem that in 6 months' time the balance is £0 when realistically it won't be!

 

I'm due a payout soon so hopefully I can clear it that way, if not I will need to arrange another plan come February.

[estellyn]

Hiya,

 

I haven't spoken to anyone on the telephone at Halifax, I've done everything by letter so that it is recorded.

 

I've been in a repayment plan since around this time last year, originally with a fee-paying company (big mistake!) and now self-managed.

 

No, like you say I don't use the account so it doesn't matter either way, it just seemed abit odd that they would make it seem that in 6 months' time the balance is £0 when realistically it won't be!

 

I'm due a payout soon so hopefully I can clear it that way, if not I will need to arrange another plan come February.

 

If you have other debts, have you had some good advice on dealing with the debt? If not post your situation and the guys will give you some advice. alternatively some other places for advice are stepchange and national debtline.