Capital One cancelled despite payments

Vimes7

Hi all,

I'm sorry if this is a stupid question. Back in January I was experiencing finincial difficulties and informed capital one that i would be unable to make payment due to this but would keep them informed and as soon as i had money available would make payment. I kept them informed as promised via the secure messages service on their website. Regular messages were sent updating them on my situation.

I then entered into a new employment and requested a payment plan of around £40.00 per month until i was in a position to repay the full required payment per month. They did not respond in writing but bombarded me with phone calls. I did ignore the calls because, no disrespect to anyone who works there but having delat with the call centre staff on previous occassions their english is quite broken and we have failed to understand what the other means on a few occassions.
The last few months however, i have met the minimum payment required, although the account is over limit. I have now received a letter from them saying my account is closed (this is fine) but it is now with a debt collections agency who may send baillifs! This company FTC has since written to me also demanding payment! If capital one had not closed my account online the card would have been back within the limit with this months payment and yet they claim i haven't paid.

Could anyone offer any advice on what, if any, action i can take against capital one for ignoring the basic fact that i was bringing the account under control once more and under the limit, and also have an adverse affect on my credit rating that i've been working so hard the last 6 months to repair?

Surely something can be done to stop these banks ruining a credit rating on a whim?

Any help or advice would be greatly appreciated. Thank you in advance.

noh

Surely something can be done to stop these banks ruining a credit rating on a whim?

I don't think it was the credit card supplier that ruined your credit rating.

Thrugelmir

Vimes7 wrote: »

Could anyone offer any advice on what, if any, action i can take against capital one for ignoring the basic fact that i was bringing the account under control once more and under the limit, and also have an adverse affect on my credit rating that i've been working so hard the last 6 months to repair?

Surely something can be done to stop these banks ruining a credit rating on a whim?

This suggests you didn't the position seriously enough.

The last few months however, i have met the minimum payment required, although the account is over limit.

CapitalOne would have quite rightly expected to see an attempt made to rectify the situation in that time frame.

Credit ratings are in place to warn other lenders.

Tixy

You didn't keep up with the minimum contracted payments. Therefore they have correctly represented this on your credit file.

They are also entitled either to sell the debt on to debt collectors or to appoint debt collectors to try to collect the debt on their behalf.
Bailiffs cannot be instructed unless you have been taken to court and a CCJ obtained. If this hasn't happened then the debt collector could only send round doorstop collection agents who have no rights and should be asked to leave. Assuming there is no CCJ then I would suggest you reply to the debt collectors to offer monthly repayments at a rate you can afford. If these payments are reasonable and you keep up with them then hopefully the debt collectors will take no further action against you.

There is no action you can take against capital one, and they haven't ruined your rating on a whim, they have correctly recorded the state of the account.

bengal-stripe

Vimes7 wrote: »

Back in January I was experiencing finincial difficulties and informed capital one that i would be unable to make payment due to this but would keep them informed and as soon as i had money available would make payment.

Did Capital One agree to this 'payment holiday' or was this just your unilateral 'can't-pay-won't-pay' decision?

It takes two to tango and it needs both parties' consent, to change the terms of an existing contract.

cse

Vimes7 wrote: »

i have met the minimum payment required, although the account is over limit.

This statement contradicts itself. Capital One's requested minimum payment amounts are always >= the amount by which your account is overlimit

On a more helpful note, one lesson to take away from this is to ALWAYS put account queries like yours in writing, delivered by recoreded delivery if possible. Secure messaging is nowhere near as 'official'

skibadee

My OH could not meet his minimum payments with Capital One and has been on a payment plan with them for over a year no problem....it is reviewed every 6mths...yes obviously it has effected his credit rating but he knew it would...he was just glad to be able to repay at a reduced amount....if you miss payments etc., then you must realise it will effect your credit rating.

paulofessex

In one respect OP you could say you are in a slightly better position now. By this l mean you just need to write to debt collection agency enclosing a chq for the monthly amount you can afford albeit £10 or £40 also advise them that you wish to set up a STANDING ORDER via your bank, you could in fact check out their website or even their letters for the bank details to set the payments up.

I WOULD NOT provide the debt collection agency with proof of income and expenditure, only a court can request that in my opinion. Also put in the letter that you will not enter into any telephone discussions regarding your account, everything to be in writing. Also make sure all interest charges are being stopped.

You will be better off due to less stress levels