Unusual Credit Card Application Help

JSharks901

Hello,

I'm new to posting on the forum, but have read many posts which have really helped me start and keep on the path to being debt free! :j

I was reading something earlier about how if a lender has not stuck ridgidly to the Consumer Credit Act then there may be some loopholes to either lower or effectively cancel the debt.

This is when I thought of an unusual situation that did happen to me when taking out a Natwest Credit Card, and I thought I would post it here in the hopes that some of you may be able to shed some light on what this could mean in terms of reducing or cancelling the debt.

For context: I have had this card since April 2014 and currently owe about £3500 on this card and I am on a Debt Managment Plan, paying around 60% of the amount I should be paying to this card each month.

The unusual part: I took out this card using an online application, linked through my online banking, as I had a Natwest Current account at the time (I don't anymore), and when all the information was entered it processed the yes/no decision as usual, but it came back saying it had been declined. So I thought nothing of it, as I had been declined on another CC application from another bank just earlier. However, a few days later out of the blue the credit card was delivered to me, with quite a high credit limit (much higher than I would ever have expected). As far as I can remeber, there was no letter beforehand or any other paperwork, or online messages in online banking, or emails etc, saying that I had actually been approved - so I was very surprised when it just turned up. I tested it and the card worked straight away with no problems, and I have been using it ever since. It shows up in my online banking and I can manage it fully.

I can't remeber if I digitally signed any agreement during the application process; I certainly have never signed anything by hand - but based on other applications, I have agreed to something in principle as part of the application, the decision is then made, and if approved I have been asked to digitally sign the full Credit Agreement at that point.

So in a nutshell i'm really not sure what all this means? So if anybody could shed some light - or point in the right direction - it will be greatly appreciated!

I have turned on notifications so I will endevour to reply to any questions or posts ASAP.

Many thanks in advance.

sourcrates

Hi,

Strange circumstances I agree. However, you normally "tick the box" before submitting the application.

It makes no difference anyway, as a credit agreement does not require a signiture to be valid.

Just using the card would be enough to satisfy a court that you concented to the agreement.

Nothing you have said would suggest to me the account would not be enforceable.

JSharks901

Hi Sourcrates,

Thank you for replying, I have found a lot of help from your replies to other people's threads, so really appreciate you taking the time to help me.

My thoughts were exactly the same, but as I read other posts about the strict regulations they had to follow, I began to think that they could be in breach.

That the actual credit agreement, which contains all the required terms, such as specific rate, credit limit, etc, were never provided to me. I am very confident this is the case as a credit limit can only be decided upon once an application has been credit checked and approved, and as mine was never 'approved' it was never provided, so I could never have been provided with this specific information.

The only knowledge I have of the limit was a small box on the piece of paper that the card was attached to that said something like 'Available Amount £X', and the percentage rate I only got by reading my statements.

So yes, whilst I agree that using it constitutes acceptance of the t&c's, based on what other people have experienced, creditors are required to spell out clearly this information, and prove they provided it to me on request that they do so.

What do you think?

[Deleted User]

Odd that you think this may be wrong AFTER you racked up £3500 of debt on the card ?

sourcrates

There "breech" can be rectified by providing the information you mention, failure to provide it beforehand would not automatically deem the agreement unenforceable.

If your intention is to challenge the validity of the agreement then I wish you luck, but you are in the realms of legal argument and that is normally quite costly, and in the end only a judge can decide one way or another.

JSharks901

Well to be honest I hadn't thought about or questioned it, nor was I, it's only after I have seen some other posts about Lenders making mistakes that would then void the debt that I got to thinking.

And yes I accept I racked up the debt, and I don't have issue paying it. I only think it is important to ensure that I know all the facts in case they may be needed down the line, such as any CCJ proceedings in the worst case.

sourcrates

Consumer credit act covers it here :

http://www.which.co.uk/consumer-rights/regulation/consumer-credit-act

If, at some time in the future, you did decide to challenge it, as I said, you would need to launch a legal challenge, which could be costly.

EssexHebridean

As you are now on a debt management plan and by the sound of it concerned that you may struggle with payments, ongoing, have you now cut up this and other cards? Continuing to use credit when you have found yourself in a position where a DMP is your only option is not generally a good idea.