Credit Card closed?

JackyO

Hi, I wonder if you can help me.

I have a credit card but last time it was issued in Jan, the bank issued it for one month. When I rang up this month to get another card, they told me the account was closed. I.e. I couldn't get another card, but neither was the card with debt collection as I always meet the minimum payments, at least.

Can anyone enlighten me as to the official status of this card? I.e. what are the proper terms for its suspension, partial closure etc.

I am sure the bank is perfectly within their rights to do whatever they want, but I wasn't informed of the impending closure of the account.

Should the bank have a clear policy of when accounts get closed (e.g. 6 months after last card date etc.)?

Can I expect a clear answer as to what date the account entered its new status? [Sneaking suspicion they decided its status when I phoned up?]

Sorry if these questions seem a bit dumb but I'm just trying to learn more so I don't get scr*wed by the bank any more than is necessary.

Thanks

lisyloo

Should the bank have a clear policy of when accounts get closed (e.g. 6 months after last card date etc.)?

They can do what they want, but they should have informed you.
Perhaps a letter was lost in the post.

If you get your credit report then the status shown should be "settled".

Can I expect a clear answer as to what date the account entered its new status?

I would get your statutory credit report from Experian or Equifax for £2.
Equifax do it on-line. Last time I did it with Experian it was "on-line" but I had to wait a week for a password in the post (don't know if they have changed that).
Personally I would no recommend the free trials to save £2.
You may find you spend a lot of money and time on the phone on hold or you might find you don't cancel in time and get charged a lot.
The credit account on your credit report should show a date for the settlement.

Unless a term is agreed (like a loan or a mortgage) then the bank can close the account when they choose although they ought to give you notice. That notice would usually come by Royal Mail so it's arrival is not guaranteed.

Hax

lisyloo wrote: »

If you get your credit report then the status shown should be "settled".

It will only show as settled if the balance has been cleared - the OP doesn't say whether or not there is a balance present.

Otherwise, so long as you haven't entered into an "arrangement" with the card supplier or defaulted on the card, I believe that the card status should show as "active" - just like any other "normal" card would.

In this case, the APR will remain at it's last level and you will have to continue making payments until the balance is cleared.

P.S. This is my understanding and not necessarily correct - if incorrect, I'm sure someone will be along shortly to correct me!

lisyloo

It will only show as settled if the balance has been cleared - the OP doesn't say whether or not there is a balance present.

I think you are correct :T
It looks like it's still being paid off (that's my reading of post#1).
In which case it cannot be settled until it's paid off.

I don't think there is a proper term.
They have closed it which means it cannot be used for anymore spending, but the debt won't be settled until it's paid off. It can be paid off in-line with the original agreement, so as long as minimum payments are made, then that's fine.

JackyO

Thanks for your replies.

I am still paying off the balance.

I do suspect, however, that the bank decided to close the account when I rang up, which, if it is the case, I am quite peeved about. I am annoyed because they didn't inform me.

Hence my evil plan to ring them up now and ask what date the account changed status to... whatever the status now is (active and inactive at the same time).

I just took advantage of Equifax trial and the account showed as active/open. But seeing as it is still 'active', without me being able to access credit, that is meaningless.

Edit: If there isn't a proper term, how on earth do the bank's staff communicate with each other re the status? There must be one!

lisyloo

But seeing as it is still 'active', without me being able to access credit, that is meaningless.

Depends on your point of view.
The credit account is still active because you still owe money on it.
Credit reports show credit accounts, not cards.