Credit card account closed but still accepting new charges

kavics17

Hi,

My Lloyd's credit card account was closed 6 months ago together with my current and saving account. It was the bank's choice, they gave no reason for it, I would have been happy to keep them.

I wasn't aware that one of my yearly fee came out from the credit card account and Lloyd's sent me a bill. It's fine, I will pay it but I'm surprised they accepted the charge and took it from my account. How is it possible? The bill seems like the previous ones, no sign that the account was closed. Does it mean It hasn't been closed? They sent me final bills before.

What do I need to do to make sure that this account is inactive and this won't happen again?
Thanks

Paul_Herring

kavics17 wrote: »

. Does it mean It hasn't been closed? They sent me final bills before.

It means you cannot charge any new bills to the card. Pre-existing continuous payment authorities (like the one you mentioned) may still be charged as you've found out.

What do I need to do to make sure that this account is inactive and this won't happen again?

Ensure any CPA's on the card have been canceled/moved to another card.

imoneyop

The yearly fee has probably been set up as a Continuous Payment Authority, so it is treated as an authorised payment. Lloyds would appear to have reopened the account to process the payment.

I would speak Lloyds and ask them to confirm that the account is still closed and also make sure that you contact the company that the fee relates to and give them a new payment method for next year.

fozmcfc

In a way Lloyds have done you a favour. There are many posters, every year on these boards, who get black marks on their credit reports, in these circumstances.

This is because a company has paid a CPA on a closed credit card.

The customer doesn't know about it until after 6 months or more, when because of non payment, the card company, have send it to debt collectors and the ex customers, is then made aware of the debt.

So nice to see Lloyds, didn't just let it go and informed you.