Credit card cancellation and accruing interest

skw1970

My husband's credit card company has decided to cancel his account. There is a large outstanding balance, but he never missed a payment and always paid more than the minimum amount each month.

We are not too concerned about the cancellation itself. They have not asked us to pay back the whole amount and are continuing to issue monthly statements and requesting monthly repayments.

However, what is hard to swollow is the fact that they are still applying the interest at nearly £280 per month! Even though they have cancelled the account, we are no nearer paying off the balance due to this huge amount of interest being added each month.

Is this fair? I understand that we have borrowed the money and interest applies, but in view of the fact that the company cancelled the account and not us, it only seems fair that they freeze the interest in order for us to pay off the debt quicker.

Can anyone tell us what are our rights in these circumstances? Any help will be very greatfully received.

Many thanks.

ILW

Is this a joke?

scottishblondie

Interest will continue to be applied regardless of who closed the account. You have no rights to have the interest frozen, but you can try to negotiate for a lower interest rate or you can look for another card to balance transfer to.