strange Natwest Credit Card closure

goldmask

In March, I received a letter from Natwest to tell me that they were going to close my saving accounts and credit card account (I don't have current account with them). I called Natwest credit card department to ask what I should do with a 0% BT I toke last December. I was told that Natwest would honour the 0% BT offer, and I could still pay no interest as long as I pay the minimum payment before the promotion rate period expries (12 month BT).

Last week I received my latest statement, surprisingly the balance was paid off and the credit card account was closed. I called Natwest credit card department again. The first two advisors I spoke to had no clue what has happened. But the thrid one told me that Natwest closed the credit account and brought the balance to zero, there is nothing to worry about, and it will not affect my credit rating, Natwest will send me a letter to let me know how I can pay back the money I owe them.

I have the money to pay off the balance. But I don't want to pay back now, because I paid fee for 12 month BT, not 9 month one. Unless Natwest refunds the fee, I will keep the money until this December. I am wondering if anyone has similar experience, and if so, how do you arrange with Natwest to pay the money back?

MrSilk

The Fee paid is not for the 0% period, but for their administrations costs to conduct the balance transfer.

I'd be more worried why they closed both accounts so abruptly, have you checked your credit file at all?

If I where you, I'd pay the balance now and be done with it, if they've closed the accounts due to something on your credit file, then there isn't anything you can do. Refusing to pay back the money until October would most likely put you in default with them and damage your credit file.

giblet10

I'd try CIFAS to start with - you send them a cheque for £10 and they'll tell you what they have registered, if anything.

CIFAS is a largely fraud prevention agency that feeds the main credit reference agencies and often the most forgotten place to look when banks randomly close accounts. Yet an incorrect CIFAS record can ruin your ability to bank in the UK - CIFAS has enormous damage capability.

CIFAS won't help you if they are peddling incorrect information. They will refer you back to the bank who registered incorrect details and it'll be for you to fight with the bank if you disagree.

Keep us updated.

goldmask

giblet10 wrote: »

I'd try CIFAS to start with - you send them a cheque for £10 and they'll tell you what they have registered, if anything.

CIFAS is a largely fraud prevention agency that feeds the main credit reference agencies and often the most forgotten place to look when banks randomly close accounts. Yet an incorrect CIFAS record can ruin your ability to bank in the UK - CIFAS has enormous damage capability.

CIFAS won't help you if they are peddling incorrect information. They will refer you back to the bank who registered incorrect details and it'll be for you to fight with the bank if you disagree.

Keep us updated.

I am not worried about my credit files or CIFAS, because I recently applied for two other credit cards and was accepted with healthy limits. My accounts were closed shortly after I closed my Natwest current account and moved all my savings to somewhere else. I think their system might think I am no longer a cutomer worth keeping.

MrSilk

goldmask wrote: »

I am not worried about my credit files or CIFAS, because I recently applied for two other credit cards and was accepted with healthy limits..

Ok, just don't come back here asking for help when those two accounts get closed. :T

planteria

this is a strange one, and i understand the desire to get the full 0% deal out of NatWest. first of all, i would insist on an explanation from NatWest as to why they decided to close your account.
i have never heard of a card provider clearing a balance with their own funds & then asking you to pay them back...in effect, the account remains open, but you are unable to access further funds. but they could have achieved that by cancelling your card (not account) and/or reducing your CL to your balance.
:think:

shortcrust

Good advice has been given. Banks don't close accounts like this because you've moved a bit of money around. Something's up.

planteria

is there an update please, goldmask?

dougie12

New and unsure how or where to post. Just recently a northern ireland judge ruled that RBS were charging mortgage customers twice when they got into arrears. He was scathing in his summary of the bank and I was wondering are credit card companies guilty of the exact same practise and if so could every uk card holder be eligible for refunds? The basis is they charge interest on outstanding debt however as each month passes are they in fact charging interest on the interest payments we have already be charged for? Does this keep our debt high and the banks make millions from the very interest they charge not the customers actual debt? Look forward to replies but before ridiculing immediately read the recent case from northern ireland where the judge did find RBS guilty of double charging

sinizterguy

dougie12 wrote: »

New and unsure how or where to post. Just recently a northern ireland judge ruled that RBS were charging mortgage customers twice when they got into arrears. He was scathing in his summary of the bank and I was wondering are credit card companies guilty of the exact same practise and if so could every uk card holder be eligible for refunds? The basis is they charge interest on outstanding debt however as each month passes are they in fact charging interest on the interest payments we have already be charged for? Does this keep our debt high and the banks make millions from the very interest they charge not the customers actual debt? Look forward to replies but before ridiculing immediately read the recent case from northern ireland where the judge did find RBS guilty of double charging

That doesn't even make sense.

If interest on the unpaid amount is added at the end of the month, then for the next month, the amount owed is larger and the interest on that amount will be more.

That's how interest works.

The judge's ruling/opinion on mortgage payments does not affect credit cards - different concepts and products.