Co-Op Credit Card debt

[bluetoffees]

Hi,

 

This is a bit complicated but bear with me. I had a Co-op bank credit card for many years with a £500 limit. Whenever i used the card I always paid in full each time a statement arrived.

 

I have for some years been on ESA. Last summer, due to being on £71 assessment for over a year awaiting an appeal i had to use my card for living expenses. I withdrew up to the £500 limit. I intended repaying the minimum payment each month by making a payment then withdrawing £10 for the following month. I realise the balance would not go down much but I would be making payments. However the card expired and they refused to send a new card. The insisted I repay them first.

 

Is this legal? They entered into a contract to renew my card and operate my account. I needed a new card to be able to withdraw £10 each month to cover the minimum payment. By refusing to renew they effectively closed the account.

 

Am I within my rights therefore to say they broke the contract and not pay them back? I lost my appeal and am living on limited savings so cannot repay them anyway. Also I moved abroad, outside the EU. Are they likely, or even able to pursue this debt in a foreign court? Surely it would cost them far more than £500 to do so.

 

Any help or advice would be very welcome.

[cerberusalert]

Thread moved to the Co-op bank forum.

[dx100uk]

am i reading thisright

 

you are withdrawing £10 to pay back £10 to the same account.??

 

and no co-op have not done anything wrong

 

read the T&C's

 

dx

[bluetoffees]

yes, the minimum payment was slightly under £10 so I was paying a very little off each month, until they refused to issue a new card. So why haven't they done anything wrong? I was making payments, so i wasn't doing anything wrong, but why are they allowed to withhold a new card?

[bluetoffees]

Hi,

 

I am at the limit of £500 on my credit card. I was paying the minimum each month, then drawing out enough to do the same again the next month. However the bank refused to renew my card. I was receiving ESA but this stopped when I lost my appeal. I am now living on savings and had to give up my flat and stay with different friends.

 

One friend was kind enough to act as a mail drop and she emails me when anything comes. I have missed about 3 payments now and they have threatened to send in the bailiffs, despite both me and her writing and telling them I don't live there and never have. They have backed down for now but can they take action against her, even though she was only collecting my mail?

[Bombaymix]

Threatening bailiffs or doorstep collectors? There is a big difference! Bailiffs won't get involved with a cc debt, more likely some tin pot debt collection agency!

 

Let me guess, your credit card Is with Vanquis? And it's impact that are giving you grief?

[bluetoffees]

Hi, no it's a Co-op bank visa and my friend says they have passed it onto a debt collection agency who are threatening bailiffs but I don't know which agency. Should we be worried?

[ncm-000]

Should we be worried?

 

Not about the bailiffs, you are trying (and succeeding) to frighten you into doing something foolish.

 

Whilst waiting for one of the 'big guns' to reply I suggest reading some of the threads on this forum and I think you will soon see how these bottom feeders work.

 

You should also be reassured that there is along way to go before anything serious can happen to you, if it ever comes to that, which is most unlikely.

 

One thing I am reasonably certain of is that Bailiffs must have a court order and can only confiscate items that can be reasonably shown to be yours, not your friends, families or anyone else's. Only yours.

[Bombaymix]

I'd put money on it being threats from a tin pot Dca.

 

You really need not worry at all.

 

As the previous poster has stated, they're doing a good job at worrying you over this very low priority debt.

 

I bet the letter they've sent is full of "if payment isn't made within the next 7 days we MAY Instruct our legal department to start proceedings and COULD turn up at your property" bla bla bla rubbish.

 

If you can find out who sent the letter, it would be helpful.

 

Please, don't worry about this. Nobody is gonna turn up at your friends house! On the off chance that they do, they can be told as politely or unpolitely as you wish to foxtrot Oscar!

[bluetoffees]

thanks for the replies, that's reassuring and very helpful.

[DonkeyB]

Isn’t it a bit rum letting your friend take all the flak? Far better for you to contact the creditor and sort out the situation – CAG can’t condone legging it from debts. Are there any charges on the account you could reclaim? PPI?

 

Any unfair treatment? For example, have they refused ato freeze interest and accept a token payment of, say, £1 per month? That’s what you should be trying to negotiate. It’s best to deal with it somehow.

[DonkeyB]

And if the letters really do suggest that bailiffs can call without first mentioning they have to get a CCJ first, that is against OFT guidelines. Use it in negotiations.

 

Get a copy of the letters and tell us what they actually say.

[bluetoffees]

\i'm not asking anyone to condone legging it and that is not what I've done, if you read my post. I

 

 

was paying back the minimum monthly payment until they refused to renew the card.

 

 

I cannot now afford to pay and I have told them this.

 

 

I have written to them, i am not allowing my friend to take the flak.

 

 

I have informed the bank 3 times that my friend is no longer handling my mail but they still keep writing.

 

 

They ignored a change of address I gave them.

 

 

Now they are threatening to send in bailiffs.

 

 

I just want to know if they can legally do this,

 

 

just because my friend was acting as a post office box for me.

[DonkeyB]

No, they can’t do that.

 

You must complain directly to Trading Standards and the OFT about this.

 

But be realistic – not renewing the card will never be accepted as a valid reason for not paying!

 

But as you have tried to negotiate, you are heading in to the realms of unfair treatment. The simple fact is that you are a ‘can’t pay’, not a ‘won’t pay’, and OFT guidelines suggest lenders must take this kind of situation into account.

 

You need to make them aware that you know they are treating you unfairly by not directing mail to you, and by threatening a third party.

 

Try composing a letter, post it here and we’ll help you get the tone right. Sory if it all sounds a bit nuanced, but it is – CAG can help you keep them at arms’ length while you try and sort things out.

[bluetoffees]

thanks for that, I will try to write a letter tomorrow - bit tired now, and I'll put it on here for any suggestions. Thanks for the advice.

[DonkeyB]

Only you will know the answer to this, but given that you were on ESA, there is of course a chance that you would come under the ‘vulnerable’ definition. This adds to your case for unfair treatment.