Can CC companies demand it all back in one go?

midlander81

Was just thinking....


I am sure that in the T&C's of some of my CC's it states that they can demand full payment. Now, I always pay on time so there is no issue with my accounts other than I owe a lot!


What would happen if they suddenly demanded it all back in one go? I couldn't pay it so would it cost me my house?

lessonlearned

Credit card debt is not secured debt so no they cannot take your house.

They could send in bailiffs to seize goods and chattels but that would be a long way down the line, after first going to court.

Monkeyballs

Hi,

Same as a bank can demand your overdraft, i think it's used in the event of a default being issued in which case they can close your account and expect full payment BUT if it got to this point then you can arrange a payment agreement or approach a debt charity, etc.

MB

Kate_fixing_it

I think the clue is in your question. Yes they can demand it but equally they can't be given what you don't have. I can demand you pay me £10,000 - doesn't mean I'm going to get it!

As MB says this is a clause in a contract to cover their own rear ends. If you are paying you are way down their list of priorities. Whilst our individual debts are personal and worrying to us we're just a number to our creditors and if you are paying in line with the agreement (i.e. paying at least the minimum each month) this isn't going to happen. If you are in a DMP and paying less than the minimum then they can stop you spending more (cancelling the card) and running up more debt, they'd probably send a few letters that are usually automated to tell you what they may/might/could do. But again this is unsecured debt so there's not really that much they can do as long as you try to repay the debt.

That clause is aimed at what happens if you can't/won't pay. These are the people they're interested in. Not the like of you and me that are paying something regularly.

Kate x