Credit Card account reopened without my consent
Discussion
I had a credit card with MBNA which I paid the balance and cancelled in May 2010.
It was confirmed that the account was closed and no money was oweing.
Today I receive a statement balance for this Credit Card, and I am able to log back into the account, which is live again and showing a balance of £49. I rang MBNA, who say this is a charge for an annual Card Protect Service (CPP?) and I will have to speak to them and ask for a refund.
Surely a Bank cannot legally reopen a Credit Account without me signing a new Credit Agreement?
It was confirmed that the account was closed and no money was oweing.
Today I receive a statement balance for this Credit Card, and I am able to log back into the account, which is live again and showing a balance of £49. I rang MBNA, who say this is a charge for an annual Card Protect Service (CPP?) and I will have to speak to them and ask for a refund.
Surely a Bank cannot legally reopen a Credit Account without me signing a new Credit Agreement?
It cant be reopened if it was closed properly in the first place. You can close your account but unless you physically write to them and close it then it stays in hibernation. Most people think by paying it off and cutting the cards up means its gone.
Oh and CPP are a farce, i phoned to cancel my policy with them as i no longer use the cards and had no wish to pay another £49 to which after 30 mins of trying to sell me new products they said was cancelled but kept the current account one open but they still charged me £49 for protecting one card despite saying i had various other policies. Fired off a stinking letter and eventually got it refunded however
Oh and CPP are a farce, i phoned to cancel my policy with them as i no longer use the cards and had no wish to pay another £49 to which after 30 mins of trying to sell me new products they said was cancelled but kept the current account one open but they still charged me £49 for protecting one card despite saying i had various other policies. Fired off a stinking letter and eventually got it refunded however
I was unfortunate to have a creditcard cloned. Luckily I spotted the first 2 transactions and cancelled it. I had a new card with a new number issued.
What surprised me was what happened a few months later - I was billed on my new card for a recurring charge I was unaware of that was set up on the old card! WTF?!?! I questioned how they could do that but it turns out the creditcard company are more than happy to give out the new account details to anyone who asks - funniest thing is they claim they are doing you a favour! t
ts!
What surprised me was what happened a few months later - I was billed on my new card for a recurring charge I was unaware of that was set up on the old card! WTF?!?! I questioned how they could do that but it turns out the creditcard company are more than happy to give out the new account details to anyone who asks - funniest thing is they claim they are doing you a favour! t
ts! Nickyboy said:
It cant be reopened if it was closed properly in the first place. You can close your account but unless you physically write to them and close it then it stays in hibernation. Most people think by paying it off and cutting the cards up means its gone.
Cheers, Brains, but it was closed 'properly', confirmed over the phone, and when I logged into my online banking to confirm after the phone call to say it was closed, there were no accounts showing.But thanks for junping to wild conclusions.
Apparently, UK Law allows any closed account to be reopened without the account holders permission, if a subscription payment service is in place. This only applies to subscriptions regarding Insurance services.
I have spoken with CPP who have cancelled the subscription and advised me that that they are refunding the charge to my account, whereupon it will be 'closed' again.
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