Credit Cards allowing payments to Closed Accounts!!

adam918

I paid off and cancelled my Alliance and Leicester Credit card in Sep 06, then in feb 07 my Card Protection company took 29 pound out of my account even though it was cancelled. 7 months later i receive a debt collection agency letter stating they need immediate payment!! Upon talkin to MBNA they explained and cancelled the charges, my problem is i now my credit score will have been severly affected, so i could struggle to get credit in future.
Alliance and Leicester are unable to change my credit score, has this happened to anyone else? and is there anything i can do about it?

Any help would be greatly appriciated :rolleyes:

Iamthesmartestmanalive

adam918 wrote: »

I paid off and cancelled my Alliance and Leicester Credit card in Sep 06, then in feb 07 my Card Protection company took 29 pound out of my account even though it was cancelled. 7 months later i receive a debt collection agency letter stating they need immediate payment!! Upon talkin to MBNA they explained and cancelled the charges, my problem is i now my credit score will have been severly affected, so i could struggle to get credit in future.
Alliance and Leicester are unable to change my credit score, has this happened to anyone else? and is there anything i can do about it?

Any help would be greatly appriciated :rolleyes:

Read your terms

CPA's must be cancelled, they are different to DD's and will be honoured on accounts whether they are active or not

Your terms state it is your responsibility to cancel unwanted CPAS and you remain liable for any related occurences

If you explain the situation nicely to an agent, they might give you a discretionary correction but you arent entitled to it

angrybarry

This happened to my GF, it was only because we were organizing our finances that we noticed it, as the credit card account was closed, she didn't receive monthly statements, so the interest simply built up silently over 3 months at some extortionate interest rate.

After a few phone calls to the CC company and the protection company, it was agreed that the amount be revoked and the black mark was removed from her credit record.

Give them a call, you never know your luck

Stephen_Leak

As above, give them a ring and play the "nice but dim" card. The chances are that the person you speak to won't know the difference between a Direct Debit and a Continuous Payment Authority either.

adam918

Ive spoke to MBNA and they say it happens all the time( oh great! makes me feel better!) theyve revoked all the charges which is fair enough, the Card protection were having not of it saying "well you've had insurance cover for the past 7 months" even though i didnt have a card to insure!!
Ive been advised that the only thing i can do is write to equifax and exerpian credit scorers i think there called, and ask nicely if they'll place a note on my file saying it was an admin error. If that doesnt work my credit rating will be screwed for the next 6 years! So much for account closed

jonesMUFCforever

adam918 wrote: »

Ive spoke to MBNA and they say it happens all the time( oh great! makes me feel better!) theyve revoked all the charges which is fair enough, the Card protection were having not of it saying "well you've had insurance cover for the past 7 months" even though i didnt have a card to insure!!
Ive been advised that the only thing i can do is write to equifax and exerpian credit scorers i think there called, and ask nicely if they'll place a note on my file saying it was an admin error. If that doesnt work my credit rating will be screwed for the next 6 years! So much for account closed

You still don't get it do you?
This was your fault so please don't apportion blame to anyone else.

adam918

ejones999 wrote: »

You still don't get it do you?
This was your fault so please don't apportion blame to anyone else.

Thanks for your input very useful!!

oscar52

Stephen_Leak wrote: »

As above, give them a ring and play the "nice but dim" card. The chances are that the person you speak to won't know the difference between a Direct Debit and a Continuous Payment Authority either.

Actually, there is little difference between a CPA and a DD. It is upto the customer to ensure that all payments from the card are cancelled (although it is easy to over look some)

jonesMUFCforever

adam918 wrote: »

Thanks for your input very useful!!

Thanks I thought the truth would bite!

smithja

why is it their fault if they forgot about it, closed an account, expected the card cancelled and not accepting any futher authorisations or transactions, the bank paid out money from it then did not bother to tell them. Is it not customary to send an invoice for monies owed, before you send it to a debt collector. I doubt any default under these circumstance is valid, no statement, no knowledge, it defies common sense, thinking about it it is also illegal under the Consumer Credit Act as you need to be issued with a default notice before and only after it lapses can they put a default on your file, and they cannot issue a default notice if you were not invoiced at all. Some people on here at times come across as if they know what they are talking about, but when it comes down to the law on the matter they dont have a clue.I beleive they have also breached their side of your terms and conditions as one will be, we will send you statement once a month on a set date if you owe us any money. So in essence this is the banks fault, not your fault, and I would ignore much of the nonsense talked by some people on here.James

smithja

I have looked it up and it breaches the Consumer Credit Act in two places, first of all they must sent you a statement when you own them money, secondly there is a procedure to go through to enter a default, if there were no statements then there was no valid default. Also in there terms and conditions they state we will send you a statement every month as long as you owe us money, again they have broken the terms of the contract and hence this another good reason to have recouse to law, which as you will be aware they do fast enough to fine you for if it is your mistake i.e. late payments etc, and get a CCJ or Decree against you for non-payment. There is also the issue of the card protection insurance which will have a contact that will likely say "you must be a cardholder", again another breach of contract law. If they dont listen, then I would file a writ against them and the credit reference agencies holding the wrong data. I would report it first to the information commissioner and the credit reference agencies in these terms (mentioning your intention to take it to court, and seek all costs and interest), if they dont comply. It will undoubtably make them sit up and listen. I hope the truth is biting the right people, and some people stop posting factious and fatuous statements based on ignorance. Most people who work in a bank branch these days are sales people, I think when some people on here get more years of experience in the industry under their belt, get to know the law of contracts not just from the consumers breaches but the instituations breaches, they might think before they scare and ridicule people, and maybe even have some humility and act like a civilised human being and apologies, however, I would not hold your breath as they are likely to attack futher attempting to justify their actions. Good luck. James