Credit Card Reclaiming Discussion

jjww_2

Premier wrote: »

That is not the way they should have done it at all.
I've often had replacement cards, usually as an ongoing renewal programme, but sometimes for other resaons (damaged card, possible security risk, etc) and never been charged a balance transfer fee by any credit card company, including MBNA

Infact, according to their own website, to do so would be against their own terms.
(And I believe similar terms of all credit card companies)

http://www.mbna.co.uk/help-centre/account-faqs/bt-cash.html

Thanks Premier,

Having read the information on the link you added I do think it is worth me trying to take it further as I have all of my statements from the time and can prove that is what they did, I think I will write another letter and see what response I get.

Hopefully (fingers crossed) as they broke their own terms and conditions I might get somewhere if not with them with the ombudsman.

icecoldfairy

hi have decided i am going to keep fighting them, have now written out next letter threatening court action. have told them what i am prepared to accept, see what happens

RAY

Hi can anyone tell me if I can actually reclaim bank charges on my credit card even though I have not yet paid it off.

podperson

You can, check the reclaiming guide. Do you still use the account on a regular basis or is it one you are just paying off? If it's the former just be aware there are some cases where the bank has thrown the toys out of the pram so to speak and closed down accounts when people have claimed charges back. I'm sure they are not meant to and am not saying it is very common but something to bear in mind.

Premier_2

podperson wrote: »

...If it's the former just be aware there are some cases where the bank has thrown the toys out of the pram so to speak and closed down accounts when people have claimed charges back. I'm sure they are not meant to and am not saying it is very common but something to bear in mind.

I don't know of any reason why they can't/shouldn't.

Most/all credit card contracts I've seen allow the supplier to close an account (upon reasonable notice). There's a similar term for the customer.

I've just had a credit card company do that to me, and there was nothing owed or being claimed.

podperson

Most suppliers should have to give a reason for closing the account down, especially if it on short notice as many are - and when the account has been in good standing up to the point when charges were reclaimed then I would have thought there would be reasonable cause to question/complain about the closure. I know someone who complained about their account being closed to the fos and the complaint was upheld since they couldn't give a reason other then they had reclaimed charges and it is classed as penalising the customer for what the bank had named as a 'goodwill gesture'.

Premier_2

The reason they gave me was that they closed my account as a result of a review which they undertake as a 'responsible lender'.

Make of that what you will.

What I will say is I had held the card for many, many years. It had a sizable credit limit (well into 5 figures) and certainly never had any bad history associated with it, not even a single default charge. (Actually I think it never had any charges at all, I usually pay off the balance in full every month)

I'm not 100% certain as to why they closed the account; I did call them but all they kept saying was that they were a responsible lender but did confirm it had nothing to do with my credit status or how the account had been handled in the past. They even suggested I apply for a new card with them which they said I would almost certainly be granted! :eek:
(unsurprisingly I didn't take them up on their offer)

Who knows why they decided to close it?

There were two reasons I could think of:
1) It was a guaranteed free for life card. (It was offered when most cards were introducing annual charges, something I fear may return soon)
Whilst the terms had the usual clause about them being able to change any terms whenever they felt like it (on reasonable notice), the term granting free for life was explicitly excluded from that clause.
Unfortunately, the option for them to close the account was not excluded, and appears to be the only way to remove the deal they originally agreed to.

2. Banks have been told to increase their reserves to 7%, which if they don't increase in cash terms implies they can't lend as much. (so they get to 7% reserve)
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7998504/Banks-told-to-double-their-cash-reserves.html

But you can't hold someone to an ongoing, indefinite contract. Legally there has to be a way out for either side else it would be considered unfair and hence unenforcible.

I suspect in the specific case you refer to, it was that the notice given wasn't considered reasonable as you do say it was done at short notice.

Edit: Is an account that has incurred default charges usually considered to be in good standing? :huh:
I presume it was default charges they were reclaiming.

Premier_2

Coincidently, I've just had some revised terms advised to me today regarding a different credit card, barclaycard.

They now, well effective 26 November 2010, quantify the exact notice. It'll be 2 months notice for them to close the account usually.

However there are a couple of exceptions, namely they have reason to believe the customer is likely to become bankrupt or has broken the agreement, in which case they may close the account immediately.
I think if you've incurred default fees, you have by definition broken the agreement.

Be afraid...

esmerellda

That change is due to the Consumer Credit Directive, Premier, just in case you wondered.

JaspaC

Don’t be overly scared by the prospect of this; the Financial Ombudsman has ruled against providers closing accounts and it happens less than it used to. So if yours is closed it’s worth making an official complaint - and you may be due even more compensation.

I have been offered a settlement from my card provider of the full amount (without interest) on the condition that I close the account.

it says "Please note that this sum is offered in full and final settlement of this matter".


Presumably then, I am not able to accept the offer, and THEN complain to the FOS about them closing my account and appeal for compensation etc..?

Would anybody advise accepting? or complaining to the FOS now (or asking the credit card company to keep the account open?).

Any help much appreciated,

J