Account Closures?

[slyheroleon]

So in a nutshell then, if I take them on and win, and they turn nasty, they could quite easily close the credit card account and insist the money be repaid within 28 days (for example).

Just to add some perspective, when Nationwide withdrew the overdraft on my current account (this was before I started asking for charges back btw) they gave me 5 days to pay back £370. Like, wtf? I could pull £370 out of my behind in five days I wouldn't be in debt. They were helpful when I phoned up and made some arrangements with me, but the letter didn't say that I could do that. Five days! The *******sorry had to edit that....but I know how you feel.

[sirowealot]

well that's scary! If they do that to me I'd need to find £4000 and then some... at the moment I'd find it hard to find £40.

[ppauls150]

If they ask you to pay everything back you can negociate with them on how much you can pay back on a monthly basis.

[sirowealot]

I doubt my negotiating skills could convince them to take £10 a month which is probably all I could afford at the moment

[ppauls150]

On another note with the threat now of account closures from the bank, can people not start making it in the terms and conditions of the settlement that they cannot once the claim has been settled to close the account down?

[Jfd100]

Bank overdrafts are usually 'repayable on demand', however credit card agreements tend not to be worded that way. Unless you have defaulted on the account and continue to make the minimum payment then whilst the company could withdraw your card they should not be able to ask you to repay the entire amount - check what your credit agreement says. [i'm no lawyer]

 

If your account was defaulted becuse of penalty charges and these are refunded you may be able to claim that the default notice was incorrect (ie it included unfair charges) so is invalid - again I'm no lawyer.

 

A bank or card company can decline your custom if they so desire - after all you can switch banks, they can switch customers - however they have to comply with the consumer credit act [i would say case law as well but...]

[dancafc]

Hi, great letters. I hope you don't mind me retaining copies of those as I am with HSBC and am worried about bank closure. Incidentally, usually they give 30 days, how did you manage to get a letter to the chairman that was responded to pronto as I know that these people don't deal with letters that quickly. cheers, Dan

[nevos]

Well Im pleased to see HSBC acting in a reasonable way which is condusive to good business practise!

[grande]

I've just sent my initial data request for statements/charges made to my account and wondered about the possibility that they might get nasty and close my account. I'm currently in a position where I have an overdraft agreement but I rarely use it (often the few days before payday to tide me over). As far as I can remember I haven't had any charges on my account in recent times so my claim will be regarding historic charges.

 

If I'm in this situation do you think they could rightly claim that "our relationship had broken down"? I can't see how to be honest but I've also seen people talk about parachute accounts just in case so I wanted a bit of clarification.

 

Thanks for any help you can provide.

[LisaDJ]

We have just had a letter saying they are closing our account in 30 days after we claimed for the second time.

They are stating that we were unwilling to adhere to the Ts & Cs as our account wasn't operated within credit.

 

The main reason for us going overdrawn in the first place was the charges!!! My partner left his job last year and after that he was temping so not earning enough. When I knew we were going overdrawn I approached my parents to borrow money - this happened quite often but the money didn't always reach the account in time and then we were charged. Our income was only just matching our outgoings and so the charges made things even worse.

 

We are with a Debt Management Plan with CCCS and we were advised to open another account so we now have a Co-op Cashminder account (all we could get with our credit rating)... am quite p***ed off that HSBC are closing our account when I tried to keep it in the black!

 

I have been with HSBC since I was 12 (now 28) and have 3 accounts... joint account, own account and savings account. They have only written to me about our joint account but I have a claim pending (court stage) with my own account.

[TUTTSI]

My hubby recently had his AMEX card terminated, he was up todate with payments and at that time he had not started claiming his charges back from them.

They say they had a review through Experian, he has checked his Experian and there is nothing adverse.

Also, when I took a MCOL out against Barclaycard for charges at the same time they reduced my limit with them but they did not close my account. I am not too unhappy about it as it will be less to find each month.

DS

[JOSH_IOU]

Lenders have there own policy by adverse it could simply mean your age or where you live or even the value of your house.

[JOSH_IOU]

I read some where that closing a bank account was unfair simply due to reclaiming bank accounts was classed as unfair.

 

A google search would be a good idea

[goughie]

I'm currently having problems with lloyds tsb. They have cancelled my debit card without warning. After a week of going into the bank to complain that I couldn't use my card I was eventually told by a cashier that the manager said he doesn't like the way I manage my account so I can only have a cashpoint card. No letter to explain this action, the manager didn't come out to speak to me, not even a telephone call.

I had however opened an account with halifax when I sent the first letter and I intend to use that account straight away before the whole thing with lloyds turns nasty!

Has anybody else had a debit card cancelled. I've never come across anything like it?

[ab123uk]

If the Branch Manager has sufficient evidence- which they will if true- that you account was managed not in accordance with the Ts & Cs (goig overdrawn, late payments, etc, then this is heard of.

 

And they are within their rights to do this. Your right, is to prove that It was closed because you were claiming. DIfficult Situation, but fight it

[fairbank]

I think that there is probably a universal concern for all those claiming unfair bank charges that accounts will be closed and that for many the refunds will only partially cover much larger overdrafts which many of us live off to some extent.

I would imagine that if this happened to me then I would have to negotiate with the bank to repay them over a very long period and so, okay I have got the charges back but I would then need to sort my act out. Probably a good thing but the culpability lies with the banks because if I total up charges, overdraft interest and the 8% interest on top then they have basically given me all this worry over the years from extortionate charges.

To me the banks will always be the winners because for all of us getting money back there are thousands who will not do this because they fear repercussions atsome stage.

Just my thoughts, but I will take great pleasure one day when somebody legally rules their unlawful behaviour and they get their just rewards.

[nevos]

Have a friend who is claiming back charges from TSB, shortly after the Pre_lim letter went to them, they wrote back calling in an £1800 over draft, the claim is maybe £2000. Wonder if they did that to say " we are paying back your o/d with any charges" or shear retaliation.

[JOSH_IOU]

This is a very interesting point indeed.

 

It would be worth seeing if the banking code authority introduces a new sub rule to guide the banks.