Warning-is your account REALLY closed?!

freegan_2

I Just tried to re apply for a balance transfer with egg which you can do after 12 months of closing a previous account. When applying online I discovered that my account was still active and that the available balance was still there to spend. I spoke to them and they insisted that my account was closed Jan 2007 and that this was a system error. (This also happened with Natwest closed over 2 years ago but still send me £0 statements). So that's 2 banks to insist my account was closed despite it still somehow/somewhere still being active. It’s a glitch that happens due to having several software systems. SO be very insistent and keep checking telephone and online banking several months after you think an account is ‘closed’ to check that it really is on ALL systems!

Thanks to this glitch creditors seem to think I have an available credit balance to the total of £20,000 still to spend when in fact I have nothing!

Nice one! (b*£$%^&s!)

YorkshireBoy

Before 'going off on one' with Egg, have you checked your credit reports to see if the account is actually marked as 'settled'? If it is marked as settled, then the available credit (that other lenders see when searching your file) doesn't exist.

The reason I ask is that Egg are known to have a 'problem' with closed accounts remaining in your secure area. I say 'problem', but it's not really because it allows you to view old statements...for free.

The correct procedure to re-apply for an Egg Card after 12 months is to call them and ask them to remove the card from your secure area, prior to making another application.

lisyloo

I would recomend getting some acknowledgement that accounts are closed as well as checking credit reports on a regular e.g. 6 monthly basis.

Being pro-active about these things helps to avoid problems.
I know it's not really your responsibility but we don't live in a perfect world.

Zebedee69

Il second that, to maintain your record you have to be fairly strict with things like closed accounts and make sure they are definately shut.

Let it be a lesson to you and next time be on the ball.

freegan_2

I WAS on the ball. I requested confirmation in writing at the time and I got a letter. I have also been calling Natest every month for two years and even went into a branch but each time was told my account was definitley closed. As i said, there are different systems old and new and I was obviuosly still exisiting as open for them to send me zero balance statements!

UK007BullDog

Yeah, I just found out that two of my CC accounts are still open or in some sort of Zombie state. So again wrote to them via registered mail to get it sorted!

Will be checking my credit report quite often now to keep an eye on this.

I wrote about this just a few days ago:
http://forums.moneysavingexpert.com/showthread.html?t=735809

heppy23

I found I still had a barclaycard.
I thought it was paid off, however when I wrote to do the DPA stuff with a view to claiming back fees I got sent 6 years of statements. It looked like the account had been left with a few pence on it and it had built up to about £2.

I phoned them and they agreed to write the amount off but strangely wouldn't confirm in writing that the account was now closed.

DifferentFromTheNorm

With regards to Egg, it's not a system error as such. Your card will show as closed with them both internally and with credit reference agencies.

1. Back in Jan 2007 when a card was closed it still showed on the website as 'active' so that you could carry on accessing your statements online.

2. As you're only allowed one Egg Card at a time then the website recognises the old card and so doesn't let you apply.

3. Even if the website didn't show the card as 'active' it still wouldn't let you apply again. Your details remain on the website so that you can't reapply within 12 months, you have to request that your details are hidden from the website so you can reapply.

They have to manually hide your details from the site, which they will only do after 12 months have passed from when you closed the card.

Maybe the person you spoke to at Egg should have explained things a bit clearer.