Credit Card Closed due to RAC taking unauthorised payment

danb12345

Hi,

I've hit a bit of a major issue due to RAC and looking for a bit of advice on how to fix the mess i'm in...

Basically I returned to being a full time mature student last September. Just before starting my course, I got a renewal reminder from the RAC saying they were about to take payment to renew my subscription against my credit card they had on file. IP thought this was strange as i had already cancelled my subscription the previous year, and when i check my credit card statements, i realised they took payment for the previous year. This wasn't the issue - i had already paid this.

This time around, I phoned RAC and told them i did not want to renew and to cancel my policy, which i was told they would do as it was well before the renewal period. Here's where the issue kicks in. The credit card they had on file is an old Natwest card they i keep around for emergencies. I have other cards with other major lenders which i use frequently, but i have not spent on my Natwest card for at least a couple of years. All my other cards are with online banking and all my mail goes to my parents address, which i have just been able to check for the first time in 6 months.

I find I have mutliple letters from Natwest. RAC took payment for the policy i told them to cancel. There are at least four consecutive months worth of letters from Natwest demanding payment. Then one where they inform me they are closing my account and turning the debt over to a collection agency. I then find multiple letters from the collection agency, which i am about to pay.

My issue is that the card this happened to is never used, so i didn't worry about not seeing the statements. RAC took payment for a service which i explicitly told them to cancel, which caused the charge and subsequent missed payments.

i have just seen my credit rating has taken a major hit because of this. I'd like to know if there is anything i can do to resolve this and fix my rating? Bearing in mind I have never missed payments on loands, i have always paid credit cards in full every month and i have quite a high limit on all my cards.

Dobbibill

Have the RAC now refunded the payment?

If the refund has come back then you may be able to discuss options with Natwest.

Hindsight is a wonderful thing, but logging into internet banking regularly and checking on your statements is a good shout or most providers now have a text message option.

DCFC79

Could have managed the situation better, setting up a direct debit is one and get the address changed, its what I would have done.

Geoff1963

I think a bank should be able to expect, that if they send letters to the address you've given them, then you will receive them ; so not acting on them, sounds ( to them ) like you were ignoring them. Do they have your phone number, so they could have called you ?

I think that a lender is always allowed to say that a default was applied by mistake, or that they are happy to undo it. So, I think you could offer NatWest whatever they ( reasonably ) had to pay out, and everyone will be happy.
NatWest are in the business of making money, not making it harder for people to borrow.

robber2

Only checking your mail every 6 months is a major part of your problem. I'd strongly suggest you make other arrangements so that you get to be aware of future potential issues before they escalate.

Rob

National_Debtline

Hi danb12345

Welcome to MSE. Natwest are not in the wrong here as there was an outstanding balance owing on your credit card. You need to speak to RAC and argue that they failed to cancel the agreement as discussed in your telephone conversation which has led to further issues.

Ask them to refund the money, including the additional charges you incurred, and to confirm in writing that it was their error that the payment was taken. If they won’t agree ask for a copy of their complaints procedure and follow it through.

You could then show the RAC letter to Natwest and ask them to remove the default from your credit report as a gesture of good will (I’m assuming this was issued as you missed payments and the debt was passed to a debt collection agency). However they would be within their rights to refuse. If they do, consider adding a notice of correction to your credit report. You can write up to 200 words explaining what has happened and this will be taken into account in future applications for credit. Contact the credit reference agencies to add this on to your report. I hope this helps.

Susie
@natdebtline