Can credit cards force early repayment?

MrPlinky

We've built up a lot of credit card debt over the years, and have finally got round to actually managing to reduce the debt, although its still at a very high level.

By my reckoning it will take about 7 years or so to clear it out.

We've never missed a payment or anything but one question I do have is, can the credit card companies suddenly turn round and say you've got to pay the entire debt straight away?

Thanks,

chattychappy

No they can't - unless, perhaps, if you go bankrupt.

They can change the minimum repayment, MBNA did this a few years ago. I think the FCA would have something to say if a CC used this in a way that caused a particular problem. Most CCs wouldn't want to provoke a debt going bad anyway.

[Deleted User]

Not while you are keeping to the terms of the agreement.

Clive_Woody

I think it is only overdrafts where they can demand repayment in full immediately, other loans, credit cards are bound by the T&Cs that normally specify repayment terms.

Assume that you have read the guidance on 'snowballing' your debt and paying paying off highest interest first?

Good luck

rizla_king

Check the T&Cs on your account. Most have conditions that they can terminate the agreement immediately and demand repayments if you breach it in certain ways. Or that they can close the account at any time given say 2 months notice.

grumbler

MrPlinky wrote: »

By my reckoning it will take about 7 years or so to clear it out.

:eek:

Try transferring at least a part to a card with low life of balance rate: 6.9% RATE FOR LIFE, 2% fee

And beware of

• Credit Card Rate Hikes - Fight unfair rate-jacking

rizla_king wrote: »

...Or that they can close the account at any time given say 2 months notice.

Theoretically. Never happens in practice.

thenudeone

rizla_king wrote: »

Check the T&Cs on your account. Most have conditions that they can terminate the agreement immediately and demand repayments if you breach it in certain ways. Or that they can close the account at any time given say 2 months notice.

Can you please post a link to the terms of any UK card which can demand early repayment even if the cardholder keeps to the terms (excluding insolvency death).

I don't think any exist, but I'm willing to be proved wrong.

grumbler

https://www.hsbc.co.uk/1/PA_esf-ca-app-content/content/pws/content/personal/pdfs/hsbc-bank-credit-card-tcs.pdf

9. Restricting Card use and ending this Agreemen

...
c
This Agreement has no fixed duration, however
it will also end when either of us gives notice
in writing to the other and where you end this
Agreement, when you return to us all Cards.
We will give you 2 months notice if we end this
Agreement under this Clause 9c.

d
If this Agreement ends:
i
you must ensure there is no further use of the
Card, and cancel any payment authorities and
standing orders;
ii
you will be liable for transactions made before
or after this Agreement ends (apart from any
referred to us for authorisation after it ended);
iii
the terms of this Agreement will continue
to apply until we have been paid in full; and
iv
we may require immediate repayment of the
balance on the Account.

Just a random example - the first CC I checked.

chattychappy

I suspect that clause (iv) would be unenforecable in normal circumstances.

grumbler

Why not?
How is it different from an overdraft repayable on demand?

YorkshireBoy

From Halifax...

18.2 We may require you to repay the full amount you owe under this agreement if you die, are made bankrupt or break this agreement repeatedly or seriously but we will follow legal requirements for your protection before we ask you for payment.


http://www.halifax.co.uk/creditcards/balance-transfer-purchase/longest-balance-transfer-card/terms/

Whilst they list the circumstances, they don't go into detail about the legal requirements regarding repeated/serious breaches and bankruptcy. The "if you die" bit is easy though...the request is passed to the executor(s).