Cancled minimum payment?

  Ex plorer 10:09 AM 23 Oct 12
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Answered

My son was telling me last night that his bank have charged him £12 for a letter and a strike has gone against him for credit worthiness.

He was upset by this and has tried to get the £12 reimbursed and strike removed but to no avail.

He set up a minimum payment many years ago to cover this kind of mishap.

A minimum payment of £5 would have covered the oversight.

The reply was that over the years he had cleared payments before interest could be charged to his cards.

The card company decided he didn’t need the safety of the minimum payment and cancelled it. He said thats why I set it up so it would cover against any mishap

They did say they wrote and informed him but he has no recollection of the letter.

Like a lot of us to day we use our cards as a temporary loan buy items when shopping but pay off the sum before interest can be added.

Others abuse there cards and are in consent debt who the bank seem to love.

Any advice.

  Forum Editor 10:12 AM 23 Oct 12

Transferred to Tech Consumer Advice from Speakers Corner

  johndrew 10:15 AM 23 Oct 12

I would suggest he contact the Financial Ombudsman and/or the FSA for advice as it would appear action has been taken on his account (the cancellation) without his consent.

  Forum Editor 10:16 AM 23 Oct 12

"The card company decided he didn’t need the safety of the minimum payment and cancelled it."

It's not up to the card provider to do that, and I've never heard of it happening. Has your son asked to see a copy of the letter that was sent to him?

  Ex plorer 14:21 PM 23 Oct 12

I have forwarded you replies to my son, thank you.

  Ex plorer 09:38 AM 25 Oct 12

Reply from bank by phone, It stopped automatically due to him always paying cc before any interest went on.

I also found this [Credit rating see no 2].

How ever I have told him to insist on a copy of the letter sent and type talk on line with the bank for more information, and copy conversation.

  Ex plorer 09:40 AM 25 Oct 12
  Ex plorer 10:31 AM 25 Oct 12

It was on the 26th May 2012 that the minimum payment was canceled by the bank.

  Forum Editor 11:22 AM 25 Oct 12
Answer

You say that your son set up the minimum payment arrangement "many years ago", but that "over the years he had cleared payments before interest could be charged to his cards."

So in effect, the minimum payment has never operated. The bank discarded the mandate because it hadn't been used. It sounds odd to me, I haven't encountered this situation before. If the bank says it sent a letter on a specific date the chances are very high that it did, and seeing a copy of it isn't really going to alter the situation.

Your son needs to talk to the bank to resolve this - the bank can remove the late-payment strike from his credit record, if they agree that there are grounds for doing so.

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