Cahoot credit card - no payments 3 years and no contact made

lizholt

: ( I took out a Cahoot credit card back in about 1996, and had a direct debit set up from my main bank account to pay the minimum payment each month. A few years ago (about 2012 I think, but I can't go back far enough in my card statements to find out the exact date) I phoned them and asked to close the card, and paid off whatever was outstanding. I cancelled the direct debit, and heard no more from them, so assumed all was well.


Then a couple of months ago, they sent me a new card in the post. I thought it strange, as I thought I'd closed the account. I've heard nothing from them for the last few years. Then this morning, I found my old online log-in details for them, and logged on, to see if my account was still active. To my horror I've found that, not only did they not close it, but the outstanding balance has now risen to £530. It turns out that I had used the card to pay an annual fee for an online genealogy site, and had forgotten to move my payment details. So the genealogy site has, for the last three years, automatically used my (supposedly closed) Cahoot card for the annual fees.


I don't mind having to pay these back, as it's a valid cost. But what I object to is that, with my direct debit having been cancelled, of course I haven't been making any monthly payments to clear the card. Cahoot have just been compounding the interest each month, at goodness knows what rates. They haven't contacted me once to find out why there have been no monthly payments, or to ask me to set up a new direct debit! I thought that meeting the monthly minimum payments was a condition of the account.


So now my outstanding amount has risen exponentially, without my knowledge. If I hadn't found my log-in details this morning, I'd still be none the wiser, and Cahoot would still be milking the compounded interest from me for years! Does anyone know whether I might have any chance of reclaiming the interest on this? I feel badly let down by Cahoot, who should have - A. closed the account down properly when asked, and B. more importantly, got in contact, through mail or email, as soon as a payment went out with no direct debit set up. : (

Paul_1977

Can you prove you asked for the account to be closed?

Always always always get written confirmation that an account has been closed.

I think the only thing you can do is pay up and close the account, and demand a letter is sent out.

You can try and get something, but I doubt you will get very far unless you have proof.

grumbler

Is it just the interest, or missed payments fees as well? What about your credit file(s)?

Your only valid point is that you asked to cancel the card and they failed to do this. On your side, you failed to make sure that the account was closed - despite the new card that should have rung the bell.

Stick to your guns and demand the interest (and fees?) waived.

levdog

If you can prove you asked for the account to be closed, then you have nothing to worry about.

grumbler

levdog wrote: »

If you can prove you asked for the account to be closed, then you have nothing to worry about.

What proof can it be except a record of the phone call that the OP obviously doesn't have?
Would you have proofs after a few years of no correspondence?

jonesMUFCforever

levdog wrote: »

If you can prove you asked for the account to be closed, then you have nothing to worry about.

I think this is incorrect.
A closed account will be reopened if a CPA goes through. It was up to the OP to cancel the geneology payment.
Why OP has had no statements/correspondence etc is a mystery.
He needs to contact the lender to find out what they say.

grumbler

jonesMUFCforever wrote: »

A closed account will be reopened if a CPA goes through.

Yes, but in this case the card provider must contact the account holder instead of keeping silence and adding interest (and charges?) for years. If the provider failed to do this, the customer can't be held responsible for anything except the amounts taken by CPAs (that the OP wasn't worried about).

lizholt

Hi, thanks all for your helpful comments. I'm a bit of a newbie on these forums - what are: OP, and CPA please?

grumbler

Original Post(er)
Continuous Payment Authority

bigadaj

lizholt wrote: »

Hi, thanks all for your helpful comments. I'm a bit of a newbie on these forums - what are: OP, and CPA please?

Original post or poster, and continuous payment authority.

bengal-stripe

lizholt wrote: »

.......what are: OP, and CPA please?

OP = Opening Poster (Posting) which is you in this case.

CPA = Continuous Payment Authority. You authorise a merchant to take regular payments (monthly, annually) from your account using the Credit/Debit Card you did supply. (As opposed to a one-off payment for an individual transaction.)