NatWest CC closure

Mike12421

Hello, I hope someone out there can help me.

I have this morning received a letter from NatWest stating that they wish to exercise their right under the card agreement to close me account within 30 days.

I contacted NatWest and was told, that it was nothing that I had done on my account, they had simply "revaluated" there lending criteria, and unfortunately I did not meet it. I asked if there was anything I could do to stop this from happeneing, however they said no.

The problem is, I require a credit card for various things coming up in the next couple of months, just as a holiday to America etc, so I now need a new credit card. I have had the NatWest CC for approximately 7-8 years now. I have had the occasional late payment, and have to hold me hands up that I have not had the best credit history in the past....although I have not had any CCJ's, bankruptcy etc, just late payments.

Can anyone help?

ldn-100

Have you ordered a copy of your credit report? You will be in a stronger position if you know exactly what the lenders can see and will be able to target your applications most effectively.

exel1966

I'm afraid there is very little you can do as Nat West have exercised their right to cancel your credit line.
You could appeal to their underwriters and explain why you think you are worthy of credit and maybe even provide evidence to support your claim, but TBH it's a long shot.
All card companies evaluate their customers accounts/limits at regular intervals based upon information provided by the CRA's and you have admitted that you've had late payments. These would not have helped your cause and now you've obviously become too much of a risk for them in todays climate.

As above, get your credit report from Equifax or Experian and check it thoroughly before applying for any further credit. If you find any anomylies on your report, then try to get them changed/updated etc.

Mike12421

Thanks for the replies.

On a side note, I have applied to Capital One for a CC, and was accepted, however when reading through the T&C's I came across this;

Total charge for credit:
At the time the agreement is made, is
£257.78

Comprising interest in the sum of:
£257.78


What does this mean? If I transfer my balance, (which I said was the reason for applying for the CC), are they going to add this cost on top? And if so, is this high compared to others?

Also, what is the normal limit on their CC's?

NickX

Mike12421 wrote: »

If I transfer my balance, (which I said was the reason for applying for the CC), are they going to add this cost on top? And if so, is this high compared to others?

Don't worry about this, it is simply an example which has to be shown by law for regulatory purposes. You will not be expected to pay £257.78.

As long as the deal is 0% for a fixed period of time then you will pay no interest before the expiry date of the promotion.

ldn-100

This is part of the summary information that is added so you can compare the product with other suppliers. It is letting you know the cost of a borrowing in a particular scenario, like £1,500 borrowed in one go and paid back in equal payments over a year. It is just an illustration.

Mike12421

If my current NatWest balance is £1000, will Capital One increase my limit, or will they only allow me to transfer a certain amount over?

NickX

Mike12421 wrote: »

If my current NatWest balance is £1000, will Capital One increase my limit, or will they only allow me to transfer a certain amount over?

The only people that know the answer to this one is Capital One.

Nobody knows what Credit Limit they will get until the application is processed, but if the limit is less than £1000, then I would advise transferring as much as they will let you (usually up to 95% of the Credit Limit that you are allocated).

Bismarck

This, like the repayable on demand overdraft is a tricky one.

What happens if you've a life-of-balance transfer and are paying it off hunky dory and they suddenly decide to invoke the closing your account in 30 days rule? Is that something that can be done? My guess is that it can but does that not just mean it's a life-of-balance as long as they are OK with it on a regular basis?

NickX

Bismarck wrote: »

What happens if you've a life-of-balance transfer and are paying it off hunky dory and they suddenly decide to invoke the closing your account in 30 days rule? Is that something that can be done?

No they can't do this. They have offered a Life of Balance deal and they have to stick by it.

They could do what Egg did to 161000 customers earlier in the year and close the account, but they cannot demand immediate repayment. They have to allow the customer to continue repaying the debt on whatever terms have been agreed and they will simply continually lower the Credit Limit to equal the Current Balance until they both reach zero.

Bismarck

Thanks for that...I didn't think they could but it was one of those "what if" scenarios...here's another...could they ramp up the minimum repayment terms then to say 5% (or 10% if you want to be extreme) to push you into breaking the terms & conditions?