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Repayment agreements when over limit
kathymoger
Posts: 2 Newbie
in Credit cards
I'm on a repayment agreement with NatWest for my credit card due to being over the credit limit (there's another story as to how that happened but I'll leave that for another thread!).
The payment has to reach them by 10th of month and it has always reached them before this date and I have also paid more than the agreed amount on two of the three occasions.
For the last two months I've received a letter stating that my repayment programme has been broken and threatening action to recover the total sum owing on my card if I don't pay immediately.
I've contacted the credit card company to discuss this and it turns out that because I have sometimes paid a portion towards the sum at other dates (rather than just as a lump sum) this triggers an automatic letter as it is below the agreed sum. I was never told in the original agreement that I was required to pay this as a single payment. To add insult to injury, my credit record (Experian) for the account is also showing that my payments are late.
I've worked hard getting my credit rating from very poor to fair on Experian over the last twelve months and was hoping that I would now be able to get some credit cards with 0% interest to help with improving it further.
My questions are:
1) Will this now poor looking credit record for a credit card make it difficult for me to get another card and will it affect my score. I don't want to apply for something that is very likely to be refused.
2) How successful do you think I will be getting NatWest to remove these late marks from my record bearing in mind that I'm overlimit anyway. I know I can add a note to my record but how much notice will be taken of this?
3) What is the likelihood of this escalating to the point where NatWest try to claim the whole of the owed sum on my card?
4) Is it worth my making a formal complaint with a view to taking this to the financial ombudsman if I receive no redress or will that just make future negotiations more difficult. I was hoping to later ask for a reduction in the interest rate on this card.
The payment has to reach them by 10th of month and it has always reached them before this date and I have also paid more than the agreed amount on two of the three occasions.
For the last two months I've received a letter stating that my repayment programme has been broken and threatening action to recover the total sum owing on my card if I don't pay immediately.
I've contacted the credit card company to discuss this and it turns out that because I have sometimes paid a portion towards the sum at other dates (rather than just as a lump sum) this triggers an automatic letter as it is below the agreed sum. I was never told in the original agreement that I was required to pay this as a single payment. To add insult to injury, my credit record (Experian) for the account is also showing that my payments are late.
I've worked hard getting my credit rating from very poor to fair on Experian over the last twelve months and was hoping that I would now be able to get some credit cards with 0% interest to help with improving it further.
My questions are:
1) Will this now poor looking credit record for a credit card make it difficult for me to get another card and will it affect my score. I don't want to apply for something that is very likely to be refused.
2) How successful do you think I will be getting NatWest to remove these late marks from my record bearing in mind that I'm overlimit anyway. I know I can add a note to my record but how much notice will be taken of this?
3) What is the likelihood of this escalating to the point where NatWest try to claim the whole of the owed sum on my card?
4) Is it worth my making a formal complaint with a view to taking this to the financial ombudsman if I receive no redress or will that just make future negotiations more difficult. I was hoping to later ask for a reduction in the interest rate on this card.
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