Closing Account & SAR?

[HardupFedup]

Hi, first post - thanks for taking an interest.

 

I have a Nat West credit card that's about 25 years old. During that time it has never been defaulted, or had any missed payments etc.

 

The balance is about £11,000 - and, I'm finding it increasingly difficult to meet the payments.

 

Now, Nat West have given notice of another interest rate rise due from next month!. It's not a huge rise, about 0.5%, but it's the straw that's going to break my back, and it's particularly galling in the face of historically low Bank of England rates!

 

So, I have the option to close the account and freeze the current interest, and continue to try and repay them.

 

My other thought is that, as it's about 25 years since I took out the card, they are unlikely to have an enforceable agreement to produce. So I intend to to SAR them to see what they do or don't have. If there's no enforceable agreement I'll just stop paying them until they produce one, or use it as a lever to get a favourable settlement.

 

My question is, what effect will closing the account have on my right to SAR them? The account has to be closed pretty quickly to freeze the rate at the current level, and the SAR process will take a few weeks.

 

If I close the account, am I doing myself out of the chance to discover that they don't have an enforceable agreement? (assuming that they don't, of course)

 

Your advice will be most welcome.

[dx100uk]

cant see them closing the a/c and anyhow that will not stop the int accuring, don't know where you got that idea from?

 

anyhow, it matters not you can SAR at any time closed or otherwise.

 

now on the front of enforceability.....you've been reading too many of these fanatasy website/tv adverts claims, even if it did turn out to be so, an unenforceable CCA is not some magic bullet that wipes debt out.

 

there are some links below in my sig that might be of int.

 

admittedly, if you CCA them [not an SAR] and it turns out un'ed then you can stop payments, but objectively it doesn't help you. the debt still exists.

 

dx

[HardupFedup]

cant see them closing the a/c and anyhow that will not stop the int accuring, don't know where you got that idea from?

 

anyhow, it matters not you can SAR at any time closed or otherwise.

 

now on the front of enforceability.....you've been reading too many of these fanatasy website/tv adverts claims, even if it did turn out to be so, an unenforceable CCA is not some magic bullet that wipes debt out.

 

there are some links below in my sig that might be of int.

 

admittedly, if you CCA them [not an SAR] and it turns out un'ed then you can stop payments, but objectively it doesn't help you. the debt still exists.

 

dx

 

 

 

Thanks for your reply.

 

The offer to close the account and fix the interest at the current rate is contained on their notice of the forthcoming rate rise. I've spoken to them and confirmed it.

 

I, also, was a bit surprised - possibly it's something to do with the flack they're taking these days, an attempt to appear more reasonable, perhaps?

 

I understand that, in the event that Nat West didn't have an enforcable agrreement, the debt would remain - but if they can'r pursue it in court, that's good enough for me.

 

I would probably use it as leverage to secure a more favourable settlement.

 

Actually, I'm a bit unsure about the whole 'unenforceability' issue at the moment, after the recent disadvantageous judgements - am I right in thinking that, although they can now register a default and pursue you with collectors, they ultimately still can't do anything worthwhile about it, such as obtain a county court judgement?

 

I certainly hope so, anyway.

 

Thank you for the answer to main my query - I will now go ahead and close the account. The interest will continue to accrue, but it will be fixed at the current rate. I will struggle on until I know whether they have a 'valid' agreement - *if* that is still of the essence after those recent judgement?

 

Thanks again.

[dx100uk]

ah yes ofcourse

sorry didn't look at that angle, i remember one of mine said that when cap1 put the mrs up to 38%. yep good ploy better than nothing!

 

as for the court case etc if you mean the charges one, that has no bearing at all on CCA's though there are others floating around that do!.

 

no. my exact route too, no CCA offer a very low F&F and be prepared to quibble upwards!!

ofcourse, you haven't got PPI or anything you can claw back first have you?

 

dx

[HardupFedup]

ah yes ofcourse

sorry didn't look at that angle, i remember one of mine said that when cap1 put the mrs up to 38%. yep good ploy better than nothing!

 

as for the court case etc if you mean the charges one, that has no bearing at all on CCA's though there are others floating around that do!.

 

no. my exact route too, no CCA offer a very low F&F and be prepared to quibble upwards!!

ofcourse, you haven't got PPI or anything you can claw back first have you?

 

dx

 

 

 

Hi, no PPI - just oodles of interest given to them over the years.

 

I've now done the deed and closed the account. I asked them how they could 'close' it with an oustanding balance, but they assured me that as far as they are concerned it is 'closed', rather than 'suspended'

 

Now I need a computer glitch to apply a zero balance to my closed account

 

They said how sorry they were to lose me (I bet!) and pointed out that I'd had the card since 1987 . They also offered a rate reduction to 10.9% for 6 months as a gesture of 'goodwill'.

 

I asked if I could close the account after the six months at the lower interest rate - but no dice , they said that would be a promotional rate, and that I'd have to close it at whatever the interest rate is going to be in June next year.

 

Trouble with that is I think that rates are going to rise steeply in the next few months, so better to fix it now and be done with it.

 

On the plus side, I'm hoping that after 22 years they won't be able to produce an agreement - but, lnowing my luck, they'll probably have it put carefully away, and send me a copy as soon as I ask for it

 

Oddly, I can still remember that long ago day when I applied for that wrteched card. I was at a theme park with my family, and got aproached by some Nat West touts. If only I knew then what I know now!......

 

Thanks again to you & CAG for showing an interest.