Vanquis query

jtj321

I think I have been monumentally stupid-got into trouble 2 or three years ago with vanquis-card was cancelled-I was then able to make a lump sum payment to get the account back in credit( about 2 1/2 years ago) after that I just left the account alone,the minimum payment ( I know I know) coming out by d/d.
My question is; The account statement gives a balance and available credit,but they tell me the account is closed,and a new card will not be reissued.

I sort of thought if a credit card company closed the account,the balance was frozen,and repayments came off the balance.I feel they are charging for an ongoing service that they won't provide.

Bet it's all there in the terms and conditions!

So,should I cancel my d/d and negotiate a repayment schedule?
-or am I stuck with these ongoing charges untill I can pay the whole balance off?
Any advice really appreciated.

YorkshireBoy

If I understand your post correctly you're saying you expect them to stop charging interest just because they won't let you continue to use, ie make purchases with, the card?

That isn't the way it works I'm afraid. You've proved you're irresponsible with money so they're not letting you get into any more debt with them.

Re the "repayment schedule"...you already have one. It's just that it's over 15-30 years or so if you only ever make the minimum payment. Why not make an additional payment now and then, or simply cancel the DD and make a fixed payment each month. Both will bring the balance down.

Or maybe you were hoping for a settlement figure? In which case, unless you're regularly missing payments, or have defaulted, they won't consider this. And if they did agree, it'll damage your credit rating (still further) for up to 6 years.

[Deleted User]

No. If an account if closed, no new spending is allowed, but the balance will continue to accrue interest under the terms.

If you can no longer make at least the min payments, then you could discuss a repayment plan. But it will obviously take longer to clear and mess up your credit file.

UsetheFORCE

So basically you are writing that you have a closed account with Vanquis which still has an outstanding balance of £xxxx???

You have been paying by Direct Debit the minimum payment each month and wonder why the balance isn't going down or not by much???

Well the simple answer will be that you are still paying interest on the money you owe Vanquis which is all correct UNLESS you want to default and get the debt passed to a Debt collection/buying company! That doesn't guarantee it being any cheaper an option and if your credit file isn't wrecked, I doubt it would be the best option!

Gurranes

They have closed the account - which means you can't use the plastic or make any new purchases.

It doesn't mean the balance has gone away in effect it is a revolving loan. So the interest and contractural repayments are still in effect.

If you negotiate a repayment schedule, i.e with suppressed interest - be aware it may show as an arrangment on your credit file. If you can continue to pay down as much as possible each month to get rib of the balance as quickly as possible.

I'm making an assumption here - so apologies if I'm wrong. But I'm guessing that as you were with Vanquis to start with and have got in to trouble, albeit 2 years ago, the option of transferring to another (cheaper) card is not an option.

jtj321

Fair enough.I'm suitably chastened.Thanks for the quick replies.