Lloyds & Halifax closing my account and credit cards

kingkhan9

grumbler wrote: »

For an immediate closure this is arguable. If this were the case, there would be no point in listing in the T&C a separate set of reasons for the immediate closure as against a closure with, say, a month notice that isn't stipulated by any reasons.

It is not instant closure, they sent me letter and told me that it will be closing in Feb (60 days notice)

grumbler

So, it's unlikely to be fraud/ML - and this is a good news. Just something that they don't like. Gambling transactions maybe?

kingkhan9

Everynamestaken wrote: »

Sorry I cannot be much help on this matter, but with regards to what I have placed in bold font, do they actually have to tell you the reasons?

Do you have a slight idea at all to what the reason relating to there review could have been?

Sorry mate, I really don't have a clue why. Also I have been holding Lloyds account for last 12 years. I opened Halifax recently. I was transferring money from one to other once in a while just to receive the £5 reward sometimes, but not regularly

kingkhan9

Gromitt wrote: »

Under certain extreme circumstances they can close the account and demand full payment, but they will obviously follow legal requirements if they do this.

Alternatively they may prevent further spending, and request you to return any issued cards to them. In this case you are still required to make at least the minimum payments.

If they have closed your current accounts, I'd expect them to do the later in regard to your credit card.

They don't have to give you any reasons as to why they have decided to close your accounts.

jonesMUFCforever wrote: »

You have no rights and they do not have to tell you why they made this decision.

As for the credit card if there is a debt on it they cannot close it.

Do you have any non Lloyds banking group accounts - any kind of transactions on any bank account that could be construed as suspicious?
Check your credit reports especially to see if there is a CIFAS marker on there.

So do you guys expect that they cannot expect me to pay the balance instantly. Also I was wondering if I will still get that 0% balance transfer offer. I really don't mind not allowing me to use the card as long as they give me the agreed time to repay without any interest as I have got things planned to repay in 20 months time

Gromitt

kingkhan9 wrote: »

It is not instant closure, they sent me letter and told me that it will be closing in Feb (60 days notice)

Ah, pity you couldn't have put that in your first post rather than us guessing

In which case it could be various things: Account appears unused, Repeated bounced SOs/DDs, breaking the T&Cs, or simply that they have recalculated your internal credit score and don't wish to offer you any type of credit.

You'll be able to keep the card account, but you may be requested to return the card itself. If you make payment in excess of the minimum then you might get away with keeping the promotional period.

kingkhan9

Gromitt wrote: »

Ah, pity you couldn't have put that in your first post rather than us guessing

In which case it could be various things: Account appears unused, Repeated bounced SOs/DDs, breaking the T&Cs, or simply that they have recalculated your internal credit score and don't wish to offer you any type of credit.

You'll be able to keep the card account, but you may be requested to return the card itself. If you make payment in excess of the minimum then you might get away with keeping the promotional period.

Sorry for partial information. It just happened in a rush.

Anyway, I can understand that if it happened with Halifax, as I am not really using much and only using that to get some reward cashback. But with Lloyds, I got plenty of transactions and I use that properly for savings maintaining about 2k balance every time.

The credit card closing letter says that

"As a financial institution, Lloyds has right to review the banking facilities that you have with us. As a result, I need to let you know that we have decided to close the following account on xxx

Please destroy the relevant card by cutting it across the magnetic stripe. You also need to continue to make payments on any outstanding balance, until it has been cleared"

Same letter for Halifax cc. Now all I am concerned is about immediate repayment. I really do not want to loose that Balance transfer offer. I am happy to make the minimum payment to keep that balance transfer offer up and running, but my doubt was if the account is closed will the offer be removed :mad:

I want to take experts advise before I speak to the banking team.

DevCoder

My bet would be that they would not extend any existing credit, that means that they may play fair under BCOBs and let you pay off the existing balance on the card but that no more spending or transfers to that card will be authorised.

grumbler

kingkhan9 wrote: »

"...

Please destroy the relevant card by cutting it across the magnetic stripe. You also need to continue to make payments on any outstanding balance, until it has been cleared"

Now all I am concerned is about immediate repayment.

I see absolutely no reasons for this concern.

kingkhan9

krisdorey wrote: »

My bet would be that they would not extend any existing credit, that means that they may play fair under BCOBs and let you pay off the existing balance on the card but that no more spending or transfers to that card will be authorised.

Thanks for the reply. Do you mean to say that they will let me pay the balance with the agreed offer. I am not planning to make any more new transactions (purchase/transfers)

There is currently some existing balance on a 0% BT offer. All I want is making minimum payments until the offer ends (about 20 months) and then pay in full at the end of 0% offer. Because they agreed for 0% for some specific period before transferring, all I want is they wont remove that offer if they close the credit card

grumbler

They can't remove the offer if you don't break the T&C (miss a payment).