Card Error

Perfidious

Hi All,

Sorry in advance about the long post!

I had a card I don't use very often, especially after I had an issue with it a year or so ago where they failed to take payment from my current account and then charged me for it (I managed to get that sorted).

However, I took a chance, and used the card to buy some expensive attraction tickets. Having had issues with it before, I decided to keep an eye on things to ensure that payment was taken on time in full.

In the interim the card provider advised me they had sent me a new card, which never arrived. I contacted them and they basically said "hold tight, it will arrive". A few weeks later I visited my old house (I moved a few months ago), and there it was. I contacted them immediately to say they were still using my wrong address, but I had the card now, and they promptly cancelled the card! Of course I complained, and they apologised, but they advised me to go into a branch and show ID. I decided not to bother - I thought that has soon as the balance was paid I would just cancel the card, as I was sick of the hassle.

Fast forward to payment date, I checked my current account, and of course the money had not been taken. I then checked my Credit card online - and there was a message saying I didn't have a card with them!

That began a cycle of calls between myself and the CC provider, and my current account provider. The CC Provider told me the account was settled, and there was nothing to pay, yet my bank was saying that the money hadn't been taken (and actually said there wasn't even a DD mandate for it!). Several calls later I asked the CC provider to send me a letter saying the account was closed (which they did), and I transferred the money to one side and waited to see what happened.

Of course, a month or so later I received a letter from the recovery team at the CC provider asking me to call them urgently, Unsurprisingly it turns out I do still owe the money, and that the reason for the mistake is that the part of the bank that takes the money isn't the same part that controls the card balance, and sometimes the part that takes the money pays the other part BEFORE they've received the DD!

I complained that I had chased them several times knowing I owed the money, and they had investigated it, yet still couldn't find that out before closing my account. They also confirmed that this wasn't on my credit file, and they asked me to pay separately. They offered me £150 discount too (which I didn't take). I said I would pay it monthly by standing order over a year (more out of belligerence than anything else), which they agreed to with no interest.

They gave me a number to complain to, which I tried, but they said they couldn't take the complaint because I didn't have a card anymore" I despair...

Anyway, sorry about the long-winded story, but my question is this: should I continue to pay? I now don't have a card or credit agreement with them, so I assume they would have to take me to court to rectify. I do use that bank for other services too (I have a loan with them). Alternatively, would I be entitled to compensation for all the time I have had to waste?

Any advice would be much appreciated.

Willing2Learn

If it were me, I would firstly check my credit files with the three CRAs.

Second, I would make a written complaint to the CC provider about the way you have been treated, You have a letter from them saying the account was 'closed' and 'settled'.

If the DCA debt is showing on your files then I would also bring that to the attention of the CC provider.

Edit: And welcome to the forum perfidious

[Deleted User]

You're not entitled to compensation over "wasted time".
Compensation is provided if you suffered a significant monetary loss.

In fact, the offered you a £150 discount which you refused.

PRAISETHESUN

You owe the company money, which you should definitely repay - if you don't they can ultimately take you to court to reclaim, as you rightly say.

As for compensation, I would say you definitely have incurred costs trying to rectify this situation which you shouldn't have to foot the bill for. My guess is that they fobbed you off when they said they couldn't take a complaint since your account was closed, so make a written complaint and request that they acknowledge and take steps to address it. Escalate it if you are not happy with their response, or if they try to fob you off again.

[Deleted User]

Perfidious wrote: »

I now don't have a card or credit agreement with them, so I assume they would have to take me to court to rectify.

You may not have a card, but you still have an agreement.

The £150 discount sounds a great result. Give them a call and see if it's still on the table.

Perfidious

Thanks all for the quick response!

I've checked the CRAs, and it is down as a closed account with nothing owing.

I believe they are on the back foot with this, as the Recovery team has increased their offer to £200 now (and it is still on the table, even after I make a complaint). They told me this situation happens quite a lot, and I bet that many people don't agree to pay it back.

I had no intention of just stopping paying until I had taken some considered advice. I think that my next step is to write to their complaints department, and see what that achieves.

Once again, thanks for everyone's help!

[Deleted User]

PRAISETHESUN wrote: »

You owe the company money, which you should definitely repay - if you don't they can ultimately take you to court to reclaim, as you rightly say.

As for compensation, I would say you definitely have incurred costs trying to rectify this situation which you shouldn't have to foot the bill for. My guess is that they fobbed you off when they said they couldn't take a complaint since your account was closed, so make a written complaint and request that they acknowledge and take steps to address it. Escalate it if you are not happy with their response, or if they try to fob you off again.

What costs do you believe to have been incurred?

Perfidious

Dozens of telephone calls and hours of my time - and I'm not cheap

Personally I think they will up the compensation; they admit they have screwed up big time, and from the correspondence I have been receiving they are very open to coming to an agreement. I think I just need to push for as much as I can get.