Claim Halifax could net €7m in deal

HALIFAX could rake in close to €7 million in interest payments from Irish customers from deals it is offering those looking to clear their credit card balances.

This is the claim of consumer website Bonkers.ie, which said Halifax credit card holders can “do better” than the bank’s offer.

As it withdraws from the Irish market Halfiax is closing all of its Irish credit card and current accounts on June 18 and is offering customers who can’t clear their balances “alternative repayment arrangement” such as personal loans.

Bonkers.ie said Halifax credit card holders with the national average balance of €1,300, who go with the payment deal, will be paying Halifax €39 per month for 40 months, which is almost three-and-a-half years. It said that by the time the last payment is made the customers will have given Halifax €229 in interest.

It said that although the Halifax deal is generous their credit card customers can do better by transferring their balances to a new card.

It said that Halifax had more than 50,000 Halifax credit card customers in Ireland and these customers could yield a potential €11.4m in interest to Halifax without operating a single branch in the country.

With approval rates for new cards running at as low as two in five, Halifax could still earn €6.84m, even if 40% of customers were successful in switching to a new credit card, the website said.

However, Halifax has dismissed the claims as “utter rubbish”, saying there will be “significantly less” people availing of the loan than what Bonkers.ie estimates.

Bonkers.ie’s Simon Moynihan said: “It’s definitely in consumers’ best interest to search out alternatives to the Halifax deal.”

The website said switching current account may seem a daunting task, but switching is simple and straightforward.

“With the help of the Irish Banking Federation’s personal account switching code, your new bank will request a list of standing orders and direct debits from your old bank and let companies like Bord Gais know your new details. The new bank will even help make sure payments like your salary are switched over,” said Mr Moynihan.