When can a credit card company demand payment of the full balance

[stillnothavingfun]

Hi All

I`ve been looking for an answer to this one all day without success :tinysmile_cry_t:. There is a caveat to this issue, being that, the account has been "closed" without a default notice being served (this has been confirmed by the credit card company). So to summerise the point on which I am seeking clarification - can a CC company close an account and/or demand the full balance without firstly issuing a default ?. I can`t find any reference to them being allowed to do this in the T&C`s.

Thanks

SNHF

[judgemental24]

Re: When can a credit card company demand payment of the full balance

They can close an account and any balance outstanding will be paid back as to the original contractual terms/ monthly repayments

They can also sell it to a debt agency as live and that debt agency as well will have to honour the original contractual terms

Close an account and terminate are two seperate issues. If terminated they can demand the balance due for which a default notice under 87(1) CCA 1974 will be needed prior to termination

[stillnothavingfun]

Re: When can a credit card company demand payment of the full balance

Thanks Judgemental24 - They`ve closed the account and demanded payment in full via a DCA (No default so no termination). One for the Ombudsman as they refuse to accept my complaint and insist I liaise with their "agent".

[nemesis45]

Re: When can a credit card company demand payment of the full balance

Hi All

I`ve been looking for an answer to this one all day without success :tinysmile_cry_t:. There is a caveat to this issue, being that, the account has been "closed" without a default notice being served (this has been confirmed by the credit card company). So to summerise the point on which I am seeking clarification - can a CC company close an account and/or demand the full balance without firstly issuing a default ?. I can`t find any reference to them being allowed to do this in the T&C`s.

Thanks

SNHF

Hi welcome to LB,

It is possible for a creditor to close an account to prevent further use
of the credit facility and to continue taking the contractually required
payments.

Are payments up to date?
Have you asked for an explanation from the card provider?

nem

[judgemental24]

Re: When can a credit card company demand payment of the full balance

Thanks Judgemental24 - They`ve closed the account and demanded payment in full via a DCA (No default so no termination). One for the Ombudsman as they refuse to accept my complaint and insist I liaise with their "agent".

If they are saying that you have to liase with their agent means the account is still live and has not been terminated. Though credit facilities have been withdrawn

They have to issue a default notice before they can demand sums not yet due and give you the option to rectify the default within 14 days

Which credit card company is this and DCA??