on what grounds can credit card companies withdraw credit and demand immediate repay-

thenudeone

Eonel wrote: »

Another sample below from Nationwide - the wording is not as onerous, but the effect is the same :

14. Closing your account
[FONT=Verdana,Verdana][FONT=Verdana,Verdana](a) At any time during this agreement either you or we can close your account by telling the other. We will give you reasonable notice before we do so.
(b) If your account is closed you must return all the cards we have issued on your account, cut in two, and repay everything you owe us under this agreement.

http://www.nationwide.co.uk/NR/rdonlyres/537363B6-1FD8-4521-AE0E-CEBF458F663E/0/P4433_OCT07.PDF

...but it doesn't say over what timescale, so it would be difficult to enforce anything other than "in line with the other parts of the agreement", i.e. a minimum payment of x% every month.

This sentence is really meant to make clear to cardholders that if the card provider ends the agreement, it doesn't mean the debt disappears - they still have to repay the money they have borrowed.

izools

Exactly.

They will demand repayment, but not immediate repayment.

I put a new (well, second hand) car on my Nationwide card last month and once I had done this I decided to call them and make it repayment only. I gave them notice that I am closing the account - it is now closed.

It has disappeared from my online banking, and when I got my statement t'other day it shows £4,500 limit, ~£4,000 balance, £0 available, but the interest rate and repayment terms remain the same. 15.9% APR, minimum payment of 1% + Interest.

The way the account is reported on my credit file also remains the same.

I only did this to immunize me from any rate jacking - which of course is likely given I nearly maxed the card out - a sure risk signal.

Credit card lenders only send a statutory demand for full and immediate repayment if the borrower defaults on the agreement. Closing the account for a reason other than borrower default does not generate such a statutory demand.

iAMaLONDONER

londonTiger wrote: »

Thanks fort he reply. I don't intend to max out the free amount. I did that with some student 0% internet overdraft services and got quite a few letters from HSBC notifying m,e what the overdraft is meant for and what it is not meant to do.

But banks are nice to students. Because they know that during the student years if they create brand loyalty - that customer will remain loyal for life, advance to the graduate account - get a mortgage from them etc.

To this day I keep my main income source with HSBC and I've left the HSBC credit card active. When I've pretty much cancelled all other cards after I rinse out the 0% period. So it does work.

Anyway. What I think would be safest to do is stay below 50% of the CC limit and pay in more than the minimum. Like double the minimum amount. Keep them happy. and not suspicious.

Really?

What did the letters say?
Were they monitoring your account usage?
Were you stoozing?