Interest on closed accounts

vpdanas

Last year I fell behind with my credit card payments. Eventually Natwest sent me a letter informing me they had closed my credit card account and set me up on a payment plan to pay off my balance. However I am still being charged interest on the outstanding balance?!...Is this right??!! Can they still charge me interest despite closing my account and setting me up on a repayment plan?

Also, having read the sites info on Credit Card charges reclaiming I am considering doing this....is it really possible/worth beginning this process?

chanz4

you can reclaim anything over £12, inregards to intrest they can still add it as its not soemthing they have todo.

tomsco

While I do believe most companies will freeze interest on a payment plan, I'm not sure of the actual legality of having to do so. And although the account is closed, you still have an outstanding balance with them, so yes, interest will be applied.

opinions4u

The debt remains. The contractual rate of interest remains.

Of course they can continue charging interest.