Cap one closing credit card account?

confuzzald

Hi everyone. Ive just had a Final Response Letter for Capital One who have agreed that I have been missold PPI and wish to offer me a payout, the thing is the agreement form seems to indicate that they will close my credit card. Is this legal? I mean if I hadnt made the complaint I doubt very much whether they would actually cancel my card, so is this not 'disadvantaging the customer'? I have been given the impression that I can not be dealt with differently just because I have made a complaint!? Here is the wording on the settlement form...

"Once we receive your form we will offset any refund against any outstanding balance or over limit amount, within 10 working days. By defaulted balances we mean any balance outstanding after the credit facility has been revoked"

Thanks

dunstonh

the thing is the agreement form seems to indicate that they will close my credit card. Is this legal?

If you are in arrears/defaults or over limit) then yes they can do that.

confuzzald

Hi Thanks for your reply, no I am not in any arrears or over any limit now but do have an oustanding balance. Im reading it to indicate that they will cancel my credit card and due to taking this action I will then be owing them money as I dont have an agreed credit limit anymore and therefore they will then take this money as it is unauthorised debt. That sounds a bit of an underhanded tactic no?

dunstonh

They cannot use the fact you have complained against you. However, any company is allowed to withdraw the offer of services for another valid reason unrelated to the complaint.

For example, it is not uncommon for those that have applied for the agreements prior to complaining to find their credit limit slashed or the ability to use the cards again withdrawn if the credit agreement has gone missing or is not of modern standards. That is not due to the complaint but the fact they found an issue because the complaint was made and they looked into it.

It may be that the have reassessed your credit limit and past history and fee you are an increased risk over their current criteria and now you will have a clear balance it is time for the limit to be reduced or service removed.

These are all commercial decisions that are not because you complained but perhaps wouldnt have happened had you not drawn attention to yourself. So, not directly linked and avoids any rule breach.

You may also be reading too much into the letter. It will be catering for those above limits as well as those below. it doesnt mean yours will be revoked. It means those that have been revoked.

confuzzald

Ok Thanks, I will await my fate!