Capital One - Notification to close account without good reason.

MerseyLad

Hi,

I got a letter in July this year from Captial One to say that as I had not used the account for some time it would be closing within 30 days.

However, 3 days before the letter arrived. I had called Capital One and transferred at £5k balance to them and they had happily accepted this and took the transfer fee.

I called them up and they stated to me that the card would be cancelled, and not reissued. The account would be left at the APR, and I would just be left to pay the balance. They said it needed to be ASAP, but I explained that I couldnt just get £5k and so I would stick with £150 per month. The operator just kept repeating "As long as your paying and not using the account it will remain open until it is nil, no matter how long". They repeated that about 3/4 times and I said "do you mean, its OK to just leave it at £150 p/m until its Nil. They said yes.

I have had a reminder letter today saying that the account was supposed to close in July and due to the balance it cannot be, and that I must pay the money ASAP.

Has anyone had this before? Can they enforce this on me? I have never missed a payment, and am happy to pay it at £150 p/m.

Any idea?

INT1

They will be hapopy with the £150 per month. They can terminate the contract and give you reasonable time to sort yourself out. Is it a overseas call centre as they tend to be scripted and find it difficult to hold a conversation when the subject diverts off a normal call.

izools

What a conumdrum!

So their system had made the decision to close the account automatically due to six months / 1 year of non-usage, and in the time between the automated decision, and the decision taking effect, you made a balance transfer.

I feel your pain; that must be a real kick in the teeth.

My advice would be to continue paying the £150 a month, but also write a complaint to Capital One, explaining to them in detail

1. What the problem is (account closed for non usage despite transferring a balance)
2. What you have done in an attempt to resolve the problem (explained the situation to telephone support agents that didn't understand the nature of the issue)
3. WHat you want done as a resolution (manually revoke the decision to close the account and allow you to clear the balance at the rate and pace agreed in the credit agreement.

Also write in your complaint letter that, should they choose not to allow you to clear the balance at the rate and pace in the credit agreement, to fully justify the reasons why.

Also request that their full and final response is issued within 28 days to enable your taking the complaint to their governing bodies should they fail to satisfactorily address your qualms.

You should then get a positive result, if not you can escalate to the FOS and get a positive result from them

never-in-doubt

I agree with izools above but one point to bear in mind, unlike a debit card account (i.e. overdraft) a credit card debt cannot be 'called in' like that and so what to do is ensure you repay the minimum amount requested each month (whatever their percentage / rate is) and you'll be fine.

They will not register anything derogatory with the CRA's - they are not allowed to. They cannot close the account and default you - they are not allowed to, they cannot enforce full repayment - they are not allowed to....

So to recap, so long as you do not use the card and just aim to clear the balance then everything will be fine.....

Pointless going to the FOS as it is up to each lender if they want to continue with your custom and as they are allowing you to repay the debt there is no breach of rules (not with the CCA1974) anyway....

Good Luck....

YorkshireBoy

never-in-doubt wrote: »

Pointless going to the FOS as it is up to each lender if they want to continue with your custom and as they are allowing you to repay the debt there is no breach of rules (not with the CCA1974) anyway....

But they're not allowing this. That's the crux of the matter. They want the £5K now.

izools wrote:

Also request that their full and final response is issued within 28 days

Their complaints procedure allows them 8 weeks to issue a final response.

never-in-doubt

They don't (want the £5k now) - maybe the CSO said that but the OP has a legal right to repay the balance (it is not even called debt, technically) at the agreed rate until closure..... therefore I don't really see an issue other than the crappy level of customer service.

MerseyLad wrote: »

The operator just kept repeating "As long as your paying and not using the account it will remain open until it is nil, no matter how long". They repeated that about 3/4 times and I said "do you mean, its OK to just leave it at £150 p/m until its Nil. They said yes.

YorkshireBoy

never-in-doubt wrote: »

They don't - maybe the CSO said that

OP has since received a letter asking for the £5K back now...

MerseyLad wrote:

I have had a reminder letter today saying...that I must pay the money ASAP.

never-in-doubt

Sorry missed that part but regardless, they have no legal recourse to demand repayment - that is the most important aspect though isn't it?