Recent credit card debt rules n regulations on min payments

[Tumilty]

Hi

Ive taken a quarter of my credit card debt off over last months but my card recently got stopped because i'd only been paying just over the minimal amount monthly.

 

The lady at HSBC said that i'd need to pay off the entire debt on the card in order to lift the block on the card & that a new lay covering all banks has been implemented to encourage people to get out of card debt faster..i.e by cancelling their card.

 

I offered to pay half but it wasn't acceptable.

 

She said i've been emailed about recent changes in rules & regulations clamping down on folks with credit cards not paying enough off monthly but i've looked & see no emails.. 

 

My question is..

has there been recent changes & should i have been made to pay it all off to lift the bar on the card..

I had to borrow from family but not everyone would be luck if have to pay over £1000 in one go. 

 

Much appreciated 

 

Tumilty 

[dx100uk]

there were such measures yes

but they were well before covid stuff instructed them to allow payment freezes/breaks etc etc.

 

why are you living off off credit?

 

what is happening to your income and where does it go...not on bank charges and an OD balance i hope!!

 

 

 

[Tumilty]

thanks, apparently they've notified me ages ago but i don't know where, no messages when i login to intenet banking. 

I'm not living off credit i've had card for years , just linked up to amazon etc. 

 

Have the measures been a recent thing? The lady i talked to said they were. Did seem a bit drastic a measure as opposed to setting up a payment plan.. I'll check my junk mail.

[AndyOrch]

https://www.moneyadviceservice.org.uk/en/articles/persistent-debt

[Tumilty]

thanks  Andyorch for that, a very informative read. It does still seem a tad harsh seeing as i have wiped a quarter of it off over the last 6 months by not using the card then for them to cancel the card on sites like Amazon etc but i admit i've only been paying just over the minimal amount per month so that's maybe it.. 

 

There was no other way of resolving the situation without paying the whole thing off, she even said i could take out a loan from a private loan company to pay it off, over £1300 which i would've hated to, i just feel for them who weren't as fortunate as me. 

[dx100uk]

they should not be advising taking a loan out, but ofcourse you can't prove it as it was over the phone.

 

 

[AndyOrch]

Quote

 It does still seem a tad harsh seeing as i have wiped a quarter of it off over the last 6 months 

 

It does indeed....as your not a persistent minimum payer and assume you keep your account in good service.The T&Cs and conditions that you originally agreed to would state that you are bound by the minimum payment of x% per month of the balance...to be asked to pay the full balance would appear to me as they have breached the agreement..as your T&Cs do not state you must pay the full balance in order to use the account.

 

The above link I have posted is only advisory and not mandatory as far as Im aware. 

[Tumilty]

Cheers, Andyorch i asked what the options were hoping there could be some kind of payment plan but no, felt a bit in a corner seeing as she could see my balances. 

Done now I suppose at least its out of way, family bank now to pay off. 

 

Dx100uk, yeah I panicked n asked options, I still can't find the email I've been sent reminding me. 

 

[45002]

Hello Tumilty

 

I had one of those Email a while back from Capital One, they also had the cheek to send me 2 letters 9 days after the Email on the same subject....

 

Junk mail is often deleted atomically  after 30 days depending on who your Email provider is

 

Have a read of this   

 

https://www.fca.org.uk/news/press-releases/fca-tells-credit-card-firms-review-their-approach-persistent-debt-customers

 

https://tinyurl.com/y5qwp47l

 

Link takes you to FCA website.

 

Good luck

 

...

[Tumilty]

Hi 45002 & thanks

 

I've checked the inbox in HSBC account, gmail etc & nothing there.. She probably said i've been contacted in order to say i've had enough chances to pay higher monthly amounts so now it's too late so you've got to pay the lot. 

 

It's paid now, i guess there's not much more i can do i just wanted to pay a more affordable rate although if i'd seen emails i probably would've cooperated. 

[Tumilty]

just a quick question regarding HSBC Flexi savings account without me having to start a new thread. 

 

My Flexi saver card was rejected & taken at the cash point, so i called HSBC & they said that since today there is no card for this account anymore and any money in that account that you want to take out by machine or spend via chip n pin/contactless, should be transferred to a current account..  Is this true. ?

 

Many thanks

Edited November 16, 2020 by Tumilty

[dx100uk]

well nationwide did the same thing earlier this year to my saver A/C

it's probably a good thing as many savers stupidly keep £1000's in an A/C that can be drained by simple debit card fraud.

or even more stupidly keep £1000's in any current with a simple debit card access.

 

its good personal security to never keep more than a few £100's in any A/C that has card access.

 

we read and indeed have seen it happen here.

 

dx

 

[Tumilty]

there seems no option than to transfer monies over to current account from flexi even though monies go into  Flexi saver.. 1 less card if read rightly 

[dx100uk]

thats what i do 

all income goes into an savings AC directly and monies then transferred as and when needed.

 

dx

 

[Tumilty]

some go into flexi & some into current but i get your point, makes sense in ways i suppose although i liked the 2 cards for each account

[Tumilty]

I can't find anywhere that says that of Nov 16th HSBC have stopped cards for the Flex savings account. For those without Internet banking it would be impossible to take out cash from that account as would have to transfer monies to current account. 

Can anyone find anything please? 

 

Thanks 

Edited November 17, 2020 by Tumilty