Credit Card Agreement has been terminated - Do I still need to pay back?

FreakShow!

My credit card agreement has been terminated. The credit card company was acquired last year and they've made the decision to stop offering the credit card entirely.

All customers have received the emails saying that the credit card has been terminated. The account will remain open until your balance has been paid off, says the website.

Thinking about it, if I no longer have an agreement with them, do I even need to pay them back? I have a balance of about £2,500 with them on the card. The FAQ site says that from the 3rd of July, I will not be accruing any interest or charges. So at most I could just set my card to pay the minimums, right?

cymruchris

Yes you have to pay it back.

If you're not going to be charged any further interest - then setting the minimum payment would mean it would take longer to pay off, but your monthly payments would be lower. I'd be inclined to kill the debt at the earliest opportunity and be free of the card though, and pay as much as I could afford each month until it was consigned to history. 

The earlier you pay it of course, the sooner the 'settled' marker will appear on your credit history, which will be a small boost in your positive credit history. 

fatbelly

Yes you now have a 0% interest debt. Paying the minimum will be ok

FreakShow!

The earlier you pay it of course, the sooner the 'settled' marker will appear on your credit history, which will be a small boost in your positive credit history. 

> My plan is to Stooze and gain interest on this money

cymruchris said:

Yes you have to pay it back.

Why? My agreement is terminated?

cymruchris

The card is withdrawn, and additional credit spend has been stopped - not the agreement terminated. It'll have been covered in your original contract somewhere in the small print that when this happens you still agree to pay any outstanding balance. Credit card providers aren't that daft. You can try not paying and see what happens. You'll get missed payments and defaults before you know it, and your credit history will dive into the depths of despair, but if you feel like having a go, give it a try.

You're saying you have the money that could be used to clear the balance in a savings account already? And that you want to keep this there to earn interest?

Or are you planning on paying the minimum, and transferring any excess available into a savings account as you go month to month?

FreakShow!

Your Keebo credit card agreement has now been terminated
Hi Customer,
We recently informed you about our decision to discontinue the Keebo credit card. This email is to confirm that we have now terminated your credit card agreement and your credit card can no longer be used.

Sounds terminated to me, not withdrawn or anything. Surely whatever is in my contract doesn't matter as it's been terminated?

Phoenix72

FreakShow! said:

Your Keebo credit card agreement has now been terminated
Hi Customer,
We recently informed you about our decision to discontinue the Keebo credit card. This email is to confirm that we have now terminated your credit card agreement and your credit card can no longer be used.

Sounds terminated to me, not withdrawn or anything. Surely whatever is in my contract doesn't matter as it's been terminated?

Well ignore the advice then and don't pay. If your credit history is trashed in a few months you will know why.

Brie

If you don't pay the money back then your credit history will show this as a default and the debt will possibly be forwarded to a debt collection agency.  

If you are happy to have that happen and have other debts you are unable to pay I suggest you post on the debt free forum and ask for help with the bigger problem, not just the one card.  

k12479

If you went into work tomorrow and told you were fired with immediate effect, i.e. your contract terminated, would you expect to be paid for the days you'd worked to date or would you think "ho hum, the contract's terminated, I guess I'm not owed anything"?

Grumpy_chap

FreakShow! said:

cymruchris said:

Yes you have to pay it back.

Why? My agreement is terminated?

You appear to have answered that in your OP:

FreakShow! said:

My credit card agreement has been terminated. The credit card company was acquired last year and they've made the decision to stop offering the credit card entirely.

All customers have received the emails saying that the credit card has been terminated. The account will remain open until your balance has been paid off, says the website.

Thinking about it, if I no longer have an agreement with them, do I even need to pay them back? I have a balance of about £2,500 with them on the card. The FAQ site says that from the 3rd of July, I will not be accruing any interest or charges. So at most I could just set my card to pay the minimums, right?

That makes it clear that you need to repay whatever balance is outstanding.

surreysaver

cymruchris said:

Yes you have to pay it back.

If you're not going to be charged any further interest - then setting the minimum payment would mean it would take longer to pay off, but your monthly payments would be lower. I'd be inclined to kill the debt at the earliest opportunity and be free of the card though, and pay as much as I could afford each month until it was consigned to history. 

The earlier you pay it of course, the sooner the 'settled' marker will appear on your credit history, which will be a small boost in your positive credit history. 

Why would you pay any more than the minimum required if you're not paying interest on it?