Account Closure without notification

[jellybabe]

Hello everyone,

 

I've got a quick query please.

 

I had recently asked for a credit increase on my Creation/Flybe Card.

 

I received the reply stating that my account had been closed 2 months beforehand. So i replied and asked why i haven't received a Account closure notice, and that the account can't be closed as they are still charging interest every month plus default fees, etc etc.

 

Today i received the reply that they have closed my account due to no purchases on there for 3 years, and that they can do that even with a balance on the account.

 

Fair enough, but if the account is closed i'm wondering....are they still allowed to keep adding interest plus default fees on the account, plus sending me Default Notices whenever i don't pay in time. And i don't mean the notices to tell you that you are late paying, no...i mean proper Default Notices??

 

I would appreciate if someone could point out to me asap what i could reply to this, as it doesn't seem right to me....but then, i might be wrong.

 

Thanks,

Jellybabe

[jellybabe]

Ok, so no one there to help me with this one??

 

I have today received my new statement, with running interest charges plus default fees plus a variation to my T&C's to my current agreement.

 

Excuse me, but closed account means no current agreement no more, doesn't it?

 

I'd really like to reply to their last message to me, but don't know if i'm right or wrong and not sure exactly how to word it.

 

I would really appreciate some advice regarding thsi please.....i have looked all over the place, but i'm none the wiser

[dx100uk]

i think you'll find there is a diff between closed

as in you cant use it

 

and termination, meaning the agreement has ended.

 

sounds like you need to get reclaiming all those PENALTY fees.

 

dx

[Andyorch]

To enable Termination there has to be a Default Notice issued first...are you in arrears on the account jelly?

 

Regards

 

Andy

[jellybabe]

Thanks dx100uk and andyorch,

 

Maybe i should ask them to clarify if the account is closed or terminated?

 

And yes, i think i will have to go for the charges again. Although it won't be that much i think to make a dent,as i reclaimed from them before.

 

They're sending me default notices quite often..which i then normally pay up.

 

I have also,occasionally, received default notices which confused me a bit.. As they stated i have to pay the amount of £0.00??

 

And yes, i'm in arrears bigtime, as every time i can't pay properly, they add the minimum payment amount on top of the next one. And you can imagine how that adds up.

 

Thanks so much for your replies,

Jellybabe

[citizenB]

JB, I imagine they have closed the account due to poor payment record

 

It might be worth sending a Subject Access Request in order to find out exactly what is going on with the account.

 

You specifically want to see the communication log/diary of events so you can see when they have issued default notices and what other letters they say they have sent you.

 

If they have closed the account then they cant make amendments to the terms and conditions - they should remain as at the time of closure.

 

IMHO, if they have closed the account then you should write along the lines of..

 

In the circumstances of your closing my account - I would request that you freeze interest payments and accept £ x (how ever much you can genuinely afford) until the balance has been repaid.

[jellybabe]

Hi citizenB,

 

Yes, i thought so too. Even though they state it's because i haven't used it for almost 3 years.

 

It doesn't really matter to me..i've been trying my hardest to get it paid off, but with the interest being the same as my payments, i just never got anywhere.

 

It would be great if they would freeze interest as i then at least stand a chance of paying it off at long last. Been paying at least £100 a month and interest was over £90 plus the over limit charge of £12 every month.

 

I just can't afford it :'(

 

Will have to wait with sending SAR until i get paid in 2 weeks.

 

Thanks for all your replies.x

[citizenB]

JB, you should also include that point about the charges.. along with the freezing of interest you want those stopped adding as well. Once you receive the SAR then you can tot up all the charges and then put in a claim for those That should reduce the balance if only by a few £'s .

[jellybabe]

Thank you

 

Will send them a letter next week about interest and charges and then send for the SAR in 2 weeks when i get paid.

 

Let's see what reply i get re interest. They're the most unhelpful bunch of people i came across so far.

 

Thanks again.x

[jellybabe]

I am totally confused now!

 

Just received a letter from the Collections Department that my payment is overdue, even though i paid 2 weeks ago. But that must be the new one for this month then.

 

Anyway, the letter states:

 

This account and the use of the Card (Haven't had a card for this for at least 3 years as the machine swallowed it at that time?), has been temporarily suspended until my account is up to date?????

 

What now? Is the account closed now or not?? How can they "temporarily suspend" it when it's closed??

 

Am i just too stupid to miss a point here?

[citizenB]

Someone appears to have their wires crossed JB and I dont think it is us.

 

Account closed.. IMHO means just that.. the account has been closed.

 

Temporarily suspended also has a specific meaning.

 

Now I am thinking that they might have realised that. .. in order to CLOSE the account, they would have had to send you a Default Notice requesting that you remedy any breach (arrears only) by a certain date. Then if you hadnt remedied the breach they would Terminate/close the account.

 

You have however been making payments to the account although perhaps not in accordance with the terms and conditions and they might just have fluffed. I am not sure what you should be doing next.. I will have a think about this and come back later

[jellybabe]

Thanks ever so much citizenB...i'm glad it's not just me who's confused

[jellybabe]

Any Ideas on what my next step could be yet?

[Andyorch]

Creditors retains the right to close an account except for credits only.This does not mean its been terminated or even a Default Notice issued( providing you are not in arrears).Even so if you was and a DN had been issued it can still be live for credits only.

Its at the the creditors discretion when that termination falls ( if a breach remains or not) and when and if litigation commences.

 

Regards

 

Andy

[jellybabe]

Sorry, i haven't been on here for a little while.

 

Thanks for your reply andyorch.

 

So that means they can just do what they want as usual.....

 

A few days ago i received the next letter asking me to ring them (which by the way i won't do, i'd rather keep everything in writing) to arrange repayment of the following:

It states

Account balance: £3500 (this is a fictional amount as an example)

Account Limit: £3000

Account in Arrears: £3500 (same as the Account Balance)

 

This is confusing me. I'm not in arrears by £3500, especially not if they state the Limit as £3000,

 

Seems like they closed it and want the full balance, but then...why do they still state the Limit as above?

 

??

 

Thanks,

 

jellybabe

[Andyorch]

Hi JB

 

 

If you exceed your limit by £X and the balance is £X outstanding then they have stopped you from exceeding any further.A DN has been issued which is procedure as you have not got the balance within your limit.

 

Andy

[jellybabe]

Thank you.

 

But they're still allowing me to get further into debt by charging me horrendous amounts of interest.

 

Since they claimed they closed the account, would it still be possible to go down that route (as suggested above) to ask them to freeze interest and charges?

And what can i do if they won't accept my request?

 

Thanks,

jellybabe

[Andyorch]

But of course....... they can add to the debt.. you can only credit it.You can request a freeze but under what basis..there is no dispute...if you are making the payment requested then that should hold the account static balance.

If you are only making the minimum payment then the interest will increase.

 

Only litigation or Termination would appear to be an option on this JB.

 

Regards

 

Andy

[jellybabe]

Thanks Andy,

 

It appears that i will, in that case, never get rid of this debt. As my payment will always be nullified by the interest and charges each month.

 

I will still try and send them a reasonable request to freeze interest and charges for financial reasons. It'll probably mean another default on my credit file..that is if they agree.

Most probably they won't as they're the most unreasonable people i've ever dealt with so far.

 

Thanks for replying and clearing that up for me.

 

jellybabe

[Conniff]

It appears from the above that you haven't yet written asking for an interest or charges freeze which you said you were going to do back in September. If you want to move forward with this, you really must start taking action 'now'.

[jellybabe]

Thanks Conniff,

 

I didn't indeed. I got confused by all the above and weren't sure if i could still try and go down that route.

 

However, i have finally written to them yesterday asking for it and am awaiting their reply now.

I did email them though, i might have to send a letter in aswell if they don't reply.

 

Thanks,

jellybabe

[jellybabe]

Ok, i think they just plainly choose to ignore me as usual, but then, it's only been a bit over a week.

 

I will, over the weekend, get the Letter printed and resend via recorded delivery on Mon.

[jellybabe]

It's Jan 2013 now and i'm still waiting on a reply from Creation.

 

I have however received threatening letters as usual and also a letter stating that they are very disappointed to see that i chose to not make the agreed minimum payment of £*.** by 6th Jan.

 

Mmmh...what agreed payment?? I wouldn't know since i never received a reply to my request?!

 

However, i still had sent a payment of £50 (to keep my side of promise) via Online Banking on the 2nd Jan, which as of today (14th Jan) still has yet to be credited to the said account????

 

Also, they have now removed the option for me to pay online on the Creation website, as obviously my account has been closed and therefore my Online account has been blocked.

 

Therefore i have no other option than keep on paying through Online Banking and hoping it will reach my account at some point?!

 

I am soooo mad right now!

[Conniff]

Be sure you are paying the correct account and sort code. Paying the wrong one can mean you lose all payments made to it if the holder of that account won't agree to them being debited back.

[jellybabe]

I paid it to the bank details it gives you on the back of the statements. So i assume (hope) this is right.

I think i will send them another message just to confirm those details.

 

Thinking of it..it's not the first time this happened when paying by online banking. Somehow they always missed my payments out.

And i had to send them a message when i noticed it hadn't been credited.

 

I used the sortcode /acct nr as stated on statements and also the card/acctn nr as reference.