Halifax calls ended in a little extra confusion

Mrs L.F. writes: I received a letter from Halifax, saying the interest on my credit card would go up by 5 percentage points because my credit score had changed. Halifax referred me to Callcredit, which told me I had a perfect score so it was nothing to do with it.

I called Halifax again and was informed the increase would be reversed. But later I was told this could not be done. I was told Halifax does not use credit scoring, but relies on ‘business sensitive information’.

Finally, it apologised for giving wrong information, and offered £110 compensation, but said I would have to cancel my card or accept the 5 percentage point rise. YOU have been a Halifax customer for more than 30 years. You had a mortgage from it with a perfect repayment record and you have never defaulted on your credit card. Yet suddenly you have become such a risk that Halifax is raising your interest rate from 17.95 per cent to 22.95 per cent.

When you asked for an explanation, you were given wrong information or hypothetical reasons, including the suggestion you might be a gambler. Finally, Halifax forked out £100 in compensation, plus £10 to cover the cost of a pointless credit check you made, and in effect paid you to cancel your card and take your business elsewhere.

Halifax has been just as vague with me. It says it did use credit scoring, and that from December 2013 to January 2014 your score fell. Why it decreased is a secret, and why it took Halifax months to react is a mystery – yet it insists that ‘we clearly set out the reasons’ whenever a cardholder’s rate changes.

This is as clear as mud.