Closed Credit Card reopened

morgani

I had a credit card with MBNA. I paid this off and closed it in July 2008.

I have today had a call from a DCA to say I owe £170. I phoned MBNA. Apparently a recurring credit card payment for £70 went out 6 months later in Jan 2009. Although I had moved address they had contact telephone numbers for me but failed to inform me.

I now have missed payments from Jan 09 to present and a default on my credit file.

Can they legally re-open my account without informing me?
Can I do anything about this?
Can I sort anything with respects to my now badly damaged credit file?

Any help greatly appreciated

YorkshireBoy

1. Yes, they paid out money for you as you had requested. You owed them the money under your agreement with them. If you're not on the ball financially, then CPAs are best avoided.

2. Not sure, but wouldn't think so. Whenever I've closed an account I've always been asked to cancel any CPAs on the account. Also, this message has been conveyed to me in the T&Cs and/or any closure confirmation letter sent by them.

Re the phone call(s), it's possible they called when you weren't in, or maybe, like many, you don't answer your mobile if the number is witheld? They will, of course, say they tried.

3. Time is a good healer. A notice of correction on your credit file may help though?

morgani

I know what you are saying regards to they needed to a degree to honour the payment. I believe it was for their own ID protection scheme you would have think they would have known.

I know they would have said they tried but if the DCA can ring me on the number provided by them then you think they might have.

Is 6 months later still a reasonable time to reopen the account?

How do I go about putting a notice of correction on my file. Phone each reference agency? What should it say or will they help?

YorkshireBoy

morgani wrote: »

Is 6 months later still a reasonable time to reopen the account?

35 months would be a reasonable time, if you had a recurring 3 year policy and had just renewed it before closing the account down.

How do I go about putting a notice of correction on my file. Phone each reference agency?

See the help files on the CRA websites, or the information sent with your credit reports.

What should it say or will they help?

A NOC means any application you make will fail the lenders' automatic scoring systems (but you probably would anyway with a default on your file so nothing lost there!). They are duty bound though to manually assess your application. The quality of your NOC will determine whether you get accepted or not.

Others will be able to advise if it's possible to get the default removed.

I assume you've paid the debt as soon as you were made aware of it?

morgani

I will be phoning back the DCA to pay in a minute. I was first made aware about an hour ago. Just wanted to check my position before I pay.

Thanks for your help

chattychappy

If the £70 charge has resulted in £100 of additional fees/interest I suggest you ask them to reduce them on the basis they are disproportionate in the circumstances. You could also argue that the circumstances arise as a result of a charge for their own ID protection scheme - something you might reasonably have expected them to cancel when you cancelled the card.

Both points are stretching it a bit - but coupled with an offer (eg to go 50/50 on the extra £100) and a willingness to take it further you never know.

Else put it down to experience - agree with the comments above. Unless you made efforts to cancel the Continuous Charge Authority, you are bit stuck really.

Good luck.