Credit card account closed without notice

Stella66

I have had a credit card with Lloyds TSB for 4 months now. Yesterday my CC was declined when l was filling up the petrol station. I phoned up Lliyds and l was told my account has been closed because l now have a default in my credit file from a loan l have with another bank. Surely this is not right, when l asked why l was not given the 30 day notice, l was told they have written to me explaining everything and l should receive the letter in a couple of days.
Surely this does not sound right, is there anything l can do? I have a current account with them with an overdraft facility, does that mean that will be withdrawn as well? Please help.

Zebedee69

Unfortunately, banks and lenders do sometimes have a quick sqwizz at your credit file every now and again during the length of your mortgage, loan, credit card.

They are protecting themselves just incase the default is the first chink in your armour and things are about to go badly for you.

Have you defaulted lately? Are you in trouble with money? What were the circumstances that led to a default being registered?

You will find it very hard to obtain a new card with that on your file. Even Capital One or Vanquis dont accept CCJ's, Defaults or BR's. Im sorry to give you more bad news too, your OD could very well go too.......

Give us more info and maybe we can help you sort things out.

m.colak

Ref: The Bank Code

14.1 We will consider cases of financial difficulty sympathetically
and positively. Our first step will be to try to contact you to
discuss the matter.

14.2 If you find yourself in financial difficulties, you should let
us know as soon as possible. We will do all we can to
help you to overcome your difficulties. With your cooperation,
we will develop a plan with you for dealing
with your financial difficulties and we will tell you in
writing what we have agreed.

14.3 The sooner we discuss your problems, the easier it will
be for both of us to find a solution. The more you tell us
about your full financial circumstances, the more we
may be able to help.

Did the bank try and contact you first to discuss the matter? If not then they are in breach of their own banking code. Go straight to the FOS and complain.:D Hopes this helps.

bengal-stripe

If there is a balance on the card and TO is up with her payments, then I presume the card has not been closed, but does not accept any new charges (no more further credit).

The Credit Card Company is perfectly happy to receive the minimum payment for the next 25 years, until the balance is cleared.

Zebedee69

bengal-stripe wrote: »

If there is a balance on the card and TO is up with her payments, then I presume the card has not been closed, but does not accept any new charges (no more further credit).

The Credit Card Company is perfectly happy to receive the minimum payment for the next 25 years, until the balance is cleared.

Oh god yer! That goes without saying doesnt it ha ha:rolleyes:

tom188

Go straight to the FOS and complain.:D Hopes this helps.

The FOS will do nothing. As stated many times before they will post the letter back to the institution concerned and wait for their own complaints procedure to be exhausted.

We will consider cases of financial difficulty sympathetically
and positively. Our first step will be to try to contact you to
discuss the matter.

Withdrawing the facility is not the same as demanding immediate repayment. It is likely they will now contact you to discuss a payment plan.

If you offered someone a facility to borrow money and discovered they had problems elsewhere would you allow them to keep borrowing more and more from you?

Stella66

Zebedee69 wrote: »

Unfortunately, banks and lenders do sometimes have a quick sqwizz at your credit file every now and again during the length of your mortgage, loan, credit card.

They are protecting themselves just incase the default is the first chink in your armour and things are about to go badly for you.

Have you defaulted lately? Are you in trouble with money? What were the circumstances that led to a default being registered?

You will find it very hard to obtain a new card with that on your file. Even Capital One or Vanquis dont accept CCJ's, Defaults or BR's. Im sorry to give you more bad news too, your OD could very well go too.......

Give us more info and maybe we can help you sort things out.

I made a late payment on my loan with the Coop bank about 2 months ago and l do not know whether that is classified as a default. I have since cleared that. I have always been up to date with my Lloyds credit card, and do not understand why they can close my account because of my late payment with the Coop.

Neillgb

Why not check your credit file with credit reference agency, on free trial i think? Perhaps an error or something there shouldnt be on file.

ajaxgeezer

Stella66 wrote: »

I made a late payment on my loan with the Coop bank about 2 months ago and l do not know whether that is classified as a default. I have since cleared that. I have always been up to date with my Lloyds credit card, and do not understand why they can close my account because of my late payment with the Coop.

...OP, two important things have already been posted. You say they have closed the account, but is that what they have actually done? I can't see how that would close an account with a balance on it, they would simply put a bar on any further credit being taken out on it.

As has also been said, if you had a perception that someone had credit trouble, you wouldn't lend to them would you? Thats the position Lloyds are in with you, either rightly or wrongly.

Your first step is to get a free copy of your credit file (well, files - there are three main companies) to see if you can identify what has gone wrong. If you believe a default shouldn't be there then you can take steps to put it right.

Good luck.

MABLE

Stella66 wrote: »

I have had a credit card with Lloyds TSB for 4 months now. Yesterday my CC was declined when l was filling up the petrol station. I phoned up Lliyds and l was told my account has been closed because l now have a default in my credit file from a loan l have with another bank. Surely this is not right, when l asked why l was not given the 30 day notice, l was told they have written to me explaining everything and l should receive the letter in a couple of days.
Surely this does not sound right, is there anything l can do? I have a current account with them with an overdraft facility, does that mean that will be withdrawn as well? Please help.

Thats why I will not close down my other credit cards or rather one of the reasons. I always carry at least two with me in case of any problems I am not aware of.

Anyway for what its worth you have been treated extremely poorly.

Dylanwing

Totally agree that it is shabby. It is totally embarrassing having your card declined, and if you don't have an alternative payment method, can be a major problem. Nice to know that you will be a getting a letter, but as with my limit reductions, by the time it arives, Wilkinsons or the curry house have already advised you! Banks have clearly not come across modern communications technology like phones or e mail! The one positive is that I have nearly paid back my cc debt, and I have no intention of ever having one again, so the long-term losers are the Banks.