Card Cancellation

cuchie

Can you take issue with card companies if they cancel your card? I had an Egg card which I rarely used and transferred a balance to it. I have paid that off by direct debit over a period of time and am still paying it off. I have had d/d's returned 3 times over the last couple of years and have sent a chq in payment.

I have now received a letter from Egg saying they have cancelled my card with immediate effect and instructed me to cut it up.

They are still receiving payment by monthly direct debit.

Question: Will this go on my credit rating?

Also I have two other cards and they have reduced the limit and at the bottom of their letters they have given me the details for Experian to check my credit report.

Question: Why have they referred me to Experian as surely if they have just reduced the limit it shouldn't have a referral to a credit report

If someone can advise please

catwoman150

If egg have cancelled your credit card. Don't forget that over 106,000 people have had their card cancelled aswell, so that you are not alone in that situation. Then you will still pay as normal until the balance has being cleared off. This will not affect your credit rating as such if you wish to apply for more credit and a question asks if you have been refused credit - Which you answer no.

The missed payments will go on your credit report though.

I expect that the other two card companies have taken a look at your credit report and thought that they will be lowering your limit but they might not of liked what they saw.

God only knows how each bank and building societies credit score everyone.