Halifax bank customers urged to close current accounts by next Tuesday

BANK of Scotland is warning its current account holders that they need to close their current accounts quickly if they want to avail of the bank's customer-friendly switch code.

Any of the bank's 50,000 Halifax current account customers who have not yet closed their current accounts must start the switching code process by June 4, if they want to ensure the switch is completed by June 18, when the accounts will be frozen.

“Customers can also choose to switch the account themselves but this can take longer. It is strongly advised that customers start the switching as soon as possible either way as there is only seven weeks left to the deadline,” a Halifax spokeswoman said.

Bank of Scotland refused to disclose how many current or credit card accounts have been closed by customers so far. They have approximately 54,000 credit card accounts here. On June 18, the credit cards will be de-activated and will be not usable at point or sale, online or at ATM machines.

Halifax has urged customers to transfer existing credit card balances, pay off the balance on the card or else avail of their automatic repayment arrangement whereby customers can pay off a set amount off their balance each month. Interest on the outstanding credit card bill will be charged at a variable rate of 10% APR.

Any current account holders who are in overdraft on their current accounts and are unable to clear the balance are being offered a personal loan by Halifax.

“It is very important to note that customers with active mandates on their accounts should have closed or switched their Halifax Current Account to make sure that alternative arrangements are in place for any ongoing direct debits or salary mandate,” she said.

“By applying for a Halifax Personal Loan, the customers Current Account will be deactivated and the outstanding balance will be frozen and converted onto a Fixed Rate Personal Loan operating at 10% APR.”

Customers will not be required to move their mortgage, fixed rate saving or personal loan accounts from Halifax unless they want to. Mortgage and personal loan customers must continue to make repayments as normal. Customers will be notified of any changes on how their accounts will be serviced.