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Got an Abbey Zero credit card? Don't worry about its new 'dormancy fee' t&cs
Former_MSE_Wendy
Posts: 929 Forumite
in Credit cards
What this is all about?
A couple of weeks ago, Abbey changed the T&Cs on its Zero credit card, which is the top card for spending overseas in my Cheap Travel Money article.
After several posts about it on the forum we contacted Abbey to find out more about the changes, including the introduction of a new 'dormamcy fee'.
What is the fee for?
The 'dormancy fee' is for cardholders who don't use their account for prolonged periods.
Yet Abbey has said it is just there to give it the right to introduce such a fee at a later stage.
It's NOT intending anyone to be charged it now, and even if it does decide to act it, you’ll be told before hand so you can avoid it.
To be safe just use the card once or twice and pay if off in full or cancel to avoid the charge.
Click reply to discuss this below if you're affected.
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A couple of weeks ago, Abbey changed the T&Cs on its Zero credit card, which is the top card for spending overseas in my Cheap Travel Money article.
After several posts about it on the forum we contacted Abbey to find out more about the changes, including the introduction of a new 'dormamcy fee'.
What is the fee for?
The 'dormancy fee' is for cardholders who don't use their account for prolonged periods.
Yet Abbey has said it is just there to give it the right to introduce such a fee at a later stage.
It's NOT intending anyone to be charged it now, and even if it does decide to act it, you’ll be told before hand so you can avoid it.
To be safe just use the card once or twice and pay if off in full or cancel to avoid the charge.
Click reply to discuss this below if you're affected.
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Comments
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Another of the new conditions is that rather than taking the lesser of £5 or 2.5% (I think that's the figure), they now take the greater - this means that the sum just over £10k that I took out at 0% for 6 months is costing me over £250 a month in repayments I hadn't budgeted for. I know it's only paying off the debt but my money is tied up in an investment (not making very much so far) and I can't easily access it... Is this allowed?0
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Well you are stoozing like me then. I wouldnt worry as the article states.0
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http://forums.moneysavingexpert.com/showthread.html?t=1158859
Some of the conditions say not using your card, some say not using your account, Abbey need to clarify exactly what this dormancy fee is and when it applies.Posts are not advice and must not be relied upon.0 -
Well you are stoozing like me then. I wouldnt worry as the article states.
The article states that the dormancy fee won't kick in immediately, but I have a feeling that the minimum repayment will go up straight away - so I'll have to pay off 2.25% (not 2.5% as I stated above), or just under £250 every month, when I had budgeted for £5!0 -
The new T&C's are effective 6th October Mark, so you'll see the new min payment amount on the first statement after that....I have a feeling that the minimum repayment will go up straight away
The golden rule with stoozing though, is that your 'investment vehicle' (which for most people will be an instant access savings account or an offset mortgage account) should allow immediate release of funds without penalty.
What about a slow-stoozing card to free up some cash each month for the increased Abbey minimum payments? Or another fast-stooz 0% on BT card?0 -
Just transfered £1.800 that I was paying interest on to Abbey Zero, better start peddaling harder through this porridge.:T:jDabbler in all things moneysaving.Master of none:o
Well except mastered my mortgage 5 yrs early :T:j
Street finds for 2018 £26:49.0 -
Another of the new conditions is that rather than taking the lesser of £5 or 2.5% (I think that's the figure), they now take the greater - this means that the sum just over £10k that I took out at 0% for 6 months is costing me over £250 a month in repayments I hadn't budgeted for. I know it's only paying off the debt but my money is tied up in an investment (not making very much so far) and I can't easily access it... Is this allowed?
If you don't need to use the card anymore and are up for a fight, write to Abbey and close your account with reference to condition 8.5 of the T&C's:
....Where changes are to your disadvantage, you may write to us within 60 days from the date of the notice to close your Account. If you do, we will not apply the change to your Account
They'll probably say ok, but in fact will just block the card(s) so their systems still automatically apply T&C changes to the account. This is where the fight starts! They'll say the account can't be closed until you zero the balance.
Check out condition 9.2 which says that if the account is closed the agreement will continue until you've repaid the balance.
In short, I believe you can carry on paying a £5 min payment rather than 2.25% of the revolving balance if you have the energy to fight for it.
WRITE. Do not phone (except for entertainment purposes).
Good luck with that!
Debtor0
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