I received one of these letters back in March just as we were heading into lockdown. Following the advice in the Persistent debt guide I contacted my lender and explained that I was only paying a bit more than the minimum monthly amount because I was paying off another card at a higher rate (which is what the guide advises to do). I continued to pay through lockdown with no payment holiday and I’ve paid off £2k this way and transferred as much as possible of the balance to a zero rate card. So the balance remaining on the original card is now less than half of what it was in March but they have now written to me and closed, (not frozen) the card. This just doesn’t feel ‘reasonable’ especially during a pandemic.
I would agree if I had had to take a payment holiday (I haven’t), continued using my card (I haven’t) and I hadn’t paid off a substantial amount of the debt (which I have) -just not sure how this can be interpreted that I am struggling.
He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery.
I have a credit card with Nationwide after I ran up some dental bills after a root filling went badly wrong.I pay a bit more than the minimum amount each month and have never missed a payment.Late last year the Nationwide sent me a letter out of the blue saying I was in "persistent debt" and I had to send them an extra £600 right away or they would stop my card. I didn't have £600 but I phoned them and increased my monthly payment a bit more and they said that would fix it. I also asked them to move the card to one of their low rate loans and they refused to do this. In writing.I wasn't happy with them and started looking around to move the debt to a loan elsewhere or a 0% card. Then came Covid and wiped out my business. I work in Events.In spite of things being very difficult financially this year I have kept up the payments to the Nationwide regardless.Now I have had a letter saying I'm still in "persistent debt" and demanding that I move to some sort of loan at 15.9%!! and higher monthly payments. During lockdown. I spoke to Nationwide on the phone and the guy threatened my credit rating if I didn't agree to sign up to some arrangement he refused to tell me the details of, or what the interest rate would be. I kept saying I wasn't agreeing to anything if I didn't know what the interest rate was or what the terms and conditions were in advance and he kept refusing to tell me.I think this is disgusting and I'm I'm refusing to do it.I have not ever broken the terms of the arrangement I signed up to with Nationwide and I'm very unhappy that they have changed the rules on me years after I signed the contract.Is there any advice other than "get a job" which obviously I am trying to do.Thank you.
anyusernameleft said:I pay a bit more than the minimum amount each month
Thank you for your letter of XXth of November 2020 your reference XXXXX.
Thank you for your offer to switch my credit card to a four year loan at the extortionately usurious rate of 15.9% which will cost me £2,097.21 in interest charges, however, I choose to decline at this time.
I point out that I am not, nor have I ever been, in breach of your terms and conditions and always pay more than the minimum monthly payment.
I point out that the Bank of England Base Rate is currently 0.1% and therefore wonder how you justify the levels you propose to charge me?
I note also that your headline loan rate you offer on loans of up to £25,000 on terms of up to five years is a still healthy 2.9%.
I am happy to take out a loan at your advertised rate of 2.9% for four years and use this to pay off the credit card and close it down.
The minimum amount I can borrow being £7,500 I calculate that on a four year term this will cost me £165.55 per month, which is about the same as my current Credit Card costs, but only £446,44 in interest charges, which, as you are so very concerned about what you choose to call my “persistent Debt” (which I call a “Credit Card”) you will doubtless be overjoyed at this solution.
With this 2.9% four year loan you can recoup your entire credit card outlay immediately and I can cheerfully close that card with you.
I await the Nationwide's response.
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