£2 debt on Post office credit Card - help

Hi,

I am about to phone the post office credit card customer service regarding a debt on the card.

Basically I checked my credit report to find they have entered a late payment mark against my record. I have moved address twice since I had this card and I didn't even know the card was still open.

The credit report shows a £2 purchase which after 6 months of late payment charges is now £82. Then the report shows the debt going to zero 3 months ago (I am guessing they have sold the debt to an agency).

I am guessing letters may have been going to my old address and I can't access my online account as they changed the system a while back.

Anyway any advice would be appreciated. I think the best plan is to explain to the post office that I have moved address and have no idea what the charge on the card is. My question is can they really turn a £2 debt to £82 within 6 months or is this a case of unfair penalty charges?

Guessing it will be very difficult to get this removed from my credit record.

Need to ensure old cards are closed!!

Thank you.
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Comments

  • Weybridge78
    Weybridge78 Posts: 208
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    Did they have any idea that you moved address twice?
  • WillPS
    WillPS Posts: 3,257
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    The Ts&Cs of the card would have advised that it's your duty to update your address promptly. There's nothing improper about late payment fees where bills haven't been issued correctly and not paid on time.

    Do they have an up to date phone number of yours or email? As a silly 19 year-old I used to frequently let my payment date go by and my card issuer (Natwest) would ring and advise that I could sort it now and avoid fees. I presume that is not a service they have to offer, but I'm surprised they'd let a debt go bad without trying to contact you via any means.

    Let us know what the charge was. If it is something legitimate, you are essentially relying on whatever goodwill you can extract from them to get it sorted. If it is something illegitimate... well I don't really know. Your card issuer (Bank of Ireland) should have made reasonable efforts to contact you, I would say that writing alone probably isn't sufficient but I could be wrong on that, unless those were the only details they had.

    Either way they will have more answers than we will.
  • wildcath_20
    wildcath_20 Posts: 39 Forumite
    They wouldn't of been informed I moved address as I forgot the credit card existed - which I realise is my fault. I will ask them however what other contact details they had for me. If they had my phone number which I am sure they did then I would argue it would have been reasonable for them to ring me. Thanks
  • Emily_Joy
    Emily_Joy Posts: 1,209
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    The credit report shows a £2 purchase which after 6 months of late payment charges is now £82. Then the report shows the debt going to zero 3 months ago (I am guessing they have sold the debt to an agency).

    This is very interesting. I am trying to help a friend of mine to improve her credit history and her credit report also shows an underpayment of £2 which she fortunately noticed only 2 months later so it didn't rocket.

    I described the case in another thread here.

    I am now wondering if £2 is some magic amount?

    As the minimum payment is £5 the late payment has a negative impact on the history so I would like to get to the bottom of this.
  • They wouldn't of been informed I moved address as I forgot the credit card existed - which I realise is my fault. I will ask them however what other contact details they had for me. If they had my phone number which I am sure they did then I would argue it would have been reasonable for them to ring me. Thanks

    It's also reasonable for you to update them as well :T
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    I would argue

    I would suggest graceful apology and polite request for multiple fee reimbursement from a position of genuine humility would achieve more than arguing anything.
  • wildcath_20
    wildcath_20 Posts: 39 Forumite
    I would suggest graceful apology and polite request for multiple fee reimbursement from a position of genuine humility would achieve more than arguing anything.

    I agree Thank you
  • wildcath_20
    wildcath_20 Posts: 39 Forumite
    !!! wrote: »
    It's also reasonable for you to update them as well :T

    I have held many credit cards over many years and until now have never missed a payment. I moved house and forgot about one card which then suddenly had a charge on which I don't even recognize. I don't think I will beat myself up too much about it. However the Post office knew about the charge so I think its reasonable for them to try my mobile number. Or even more reasonable is not to escalate £2 to £82 but hey they have to make money somehow.
  • Ben8282
    Ben8282 Posts: 4,821
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    edited 7 March 2018 at 5:19AM
    The credit report will not show a £2 purchase. It will show that a balance of £2 (which could be anything from £1.01 upwards rounded up to £2) existed on the card in the month in question.
    If you forget that the card existed then how did this balance appear? If you know it was a purchase then you must have made it.
    Nor will the credit report show late payment charges as such; it will simply show the balance increasing each month and a late payment marker.
    If the balance has been cleared and the debt sold as you believe then the status of the account must now be default. Not a late payment marker against the account as you say.
    In answer to your last paragraph. there is no actual evidence to suggest that these are all late payment charges. You are assuming things that cannot be evident from the information contained on your credit report. If the card was used once then perhaps it could have been used again? If the card is in your possession suggest you think very carefully if you used it or have some regular payment set up on it etc.
    It is irresponsible to change your address and not inform the issuers of your credit cards. You should also set up a direct debit for at least the minimum payment to avoid situations such as this
  • shortcrust
    shortcrust Posts: 2,697
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    I would suggest graceful apology and polite request for multiple fee reimbursement from a position of genuine humility would achieve more than arguing anything.

    I think this is great advice. However I'd be far more worried about the impact of this on my credit file than the £82. Have they registered a default? If so I would write a contrite letter pleading for it to be removed given that the debt was originally only £2.
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