Credit Card Account Settled / Still Being Chased :(

[1smiler1]

Hi Good Folks of the Answerbank
I recently paid off my credit card by calling and asking for a closing balance, I paid the amount agreed and was happy to be out of debt! The bank sent me a letter confirming that my account was now closed, great!

Now 3 months later they have contacted me for the 'outstanding balance'. After much discussion, they have listened to the recording of the full conversation that took place, and agree that the final balance was agreed and paid. However, they now say that a mistake (human error) was made and that I am still liable for the balance.

I'm really aggrieved by this, They are now continuing to add monthly charges to an account this is ... closed! If anyone could anyone let me know where I stand legally it would be really appreciated, i'd much prefer to be in your debt of gratitude. I still have the letter from the bank confirming closure, but they have sent a letter stating they will no longer discuss the matter. Any advice would be really warmly received.

Many Thanks for taking the time to read this

[Tuvok]

Perhaps there was interest applied between when you were given the balance and when the payment was processed?

[Peter Pedant]

I think it is worth posting in Law (civil)

If the people who agreed your account was closed in writing now say it isnt,
I would have thought you have a case (for insisting it is closed)

from your script - it is possible that a third party (Z) said OK the account with (X) is closed in which case I think you are screwed....

[factor-fiction]

Are you disputing that the additional amounts ever existed/were ever incurred, or are you just arguing that they gave the wrong information and should honour what they said.

[EcclesCake]

I suspect you rang in mid cycle of your credit period and settled the figure at that point which wouldn't take account of interest owed which gets rolled forward on to your next bill.

If that is the case you have misunderstood the credit cycle and your bank have stated the facts as they stood at the time.

[1smiler1]

Thanks for the replies, really warms my heart :)
I called the bank to settle the account, therefor agreeing a closing balance (lower than the outstanding balance) for a one off payment. This amount was agreed verbally - the recording of the conversation has been acknowledged in the last letter I received. The agreement was between myself and the solely - they gave me the figure I needed to pay to close the account! I still have the letter confirming that the account is closed... followed by more letters threatening to sell the debt to a 'debt collection company'. So frustrated, i'm not sure where to turn. I'll post in the Law forum also, thanks so much for the advice

[factor-fiction]

Good luck. Seeking a discount on an outstanding debt is not a tactic I've ever tried. I think it depends on exactly what was agreed in terms of being a full and final settlement and how any items in the pipeline or future transactions would be treated. Have they explained where the additional amount came from?

[1smiler1]

Hiya, the balance they are chasing is the same amount that they agreed would be written off if I 'settled' the account. They fully acknowledge this agreement, the recording of the conversation has been listened to, and the closure letter received. However, they claim that due to a 'human error' from a member of their staff, I am still liable to pay the difference... They refuse to discuss the matter any further and sent a pamphlet for the Ombudsman. Unbelievable :(

[boxtops]

I don't understand this. Did you used to receive a paper account each month, or on-line credit card statements? If so - you can check these - you should have received a statement showing either that the account was still live, or that it is cleared. My paid-off credit cards still send or show zero value statements from time to time.

[boxtops]

...and how did you pay off the balance, surely that transaction will show on your bank or other statement?

[1smiler1]

Hi Boxtops, I used to received statements from the bank, then a letter confirming the account was closed, followed a few weeks later by another statement. A total contradiction. They have not honored their own agreement even though they acknowledge it was made! Can they really blame human error when the human that made the error was representing them? surely they would have controls in place to ring alarm bells before they sent the letter confirming the account is closed! Banks just stoop lower and lower.

[1smiler1]

The balance was paid in cash at a branch, this amount has not been questioned and no longer shows as debt on the latest statements..

[Cloverjo]

Write to the banking ombudsman, politely stating everything you've told us here.
There was another authority that could look into this, which I have used in the past and which found in my favour. However, I'm away from home so can't check what these people were called. I think it was LSA or FSA or something similar.

[Cloverjo]

FLA, I think.
http://www.fla.org.uk/consumer

[factor-fiction]

I can understand your puzzlement but I wonder if statements such as "unbelievable" and "Banks just stoop lower and lower" are over the top.
You owed a figure- let's call it £1000 as an example . You asked if you could pay a settlement figure of a lower amount- let's call it £600. You feel they agreed. Now they are asking you for £400.
Is that right?

[factor-fiction]

Sorry- got to go before I'd finished the post. Back alter

[Tuvok]

So you did pay the amount you were quoted.

You admit it was lower than the outstanding balance.

You then had the account closed.

Mistake seems to be that no thought was taken of any charges yet to be applied to the card by either yourself or the bank staff.

Is that correct?

If so I would suggest that as bank have admitted human error, you pay the outstanding balance and see if they will waive the charges.... you can but try.

[1smiler1]

Thanks CloverJo, so very kind and much appreciated, i'll follow up with them.
Hi Factor-Fiction, that's exactly the agreement, i'm just incredibly frustrated at the moment and really feel this is unbelievable. Its little man vs the corporation. i've searched the Internet and can find no case of the same nature. I believe the letter sent is legally binding as it has been printed on their headed paper and states very clearly my account is closed.

[1smiler1]

Hi Tuvok
"So you did pay the amount you were quoted. You admit it was lower than the outstanding balance. You then had the account closed" All of this is totally correct, there are no additional charges or timing issue's, I made sure of this when agreeing the closure. The bank have reneged on the agreement, although there is verbal and written proof. Not just morally, but legally ... can they really do this? hmmph despair :(

[jno]

if you've got a letter saying "You've paid everything, you owe us nothing", that should settle the matter (don't lose it, though). The amount you paid is irrelevant if they agreed it settled your debt.

[Mamyalynne]

You have a letter saying 'Account Closed' do you have a letter saying 'Zero Balance'?


If I owed a large Company an amount of money and they agreed to settle for less than the balance, alarm bells would ring for me.