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Bank kicking me out

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  • 16-09-2010 1:08pm
    #1
    Ben Hadad
    Registered Users Posts: 186 ✭✭


    Hi,

    I received a letter from my bank saying that they were basically kicking me out due to my credit card debt of roughly €600.
    This debt is roughly six months old. I wrote to them telling them that I was currently paying back my student loan at an accelerated rate and when that was fully paid off I would then pay off my credit card which I personally taught was trifling in size and age. My student loan will be fully repaid during December. In the mean time I told them I was happy to incur the interest on this debt, as surely that is how banks make their money from credit cards.

    It would appear that they have since sold my debt to a collection agency and due to the loss on this are kicking me out of the bank, forcing me to close my current account and all other accounts.

    This appears to me to be both heavy handed and dumb. I am certain this will also have future ramification in relation to my credit rating, which I am also not too pleased about.



    Is their anything I can do?


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    #2
    hobochris
    Registered Users Posts: 2,164 ✭✭✭hobochris


    Pay your debts perhaps?!

    And in future make sure you can/do make the minimum payment on credit cards.

    Debt repayment is on the terms of the contract not on your terms unless the bank agrees to restructure the debt.


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    #3
    GerardKeating
    Registered Users Posts: 7,651 ✭✭✭GerardKeating


    Ben Hadad wrote: »
    Hi,

    I received a letter from my bank saying that they were basically kicking me out due to my credit card debt of roughly €600.
    This debt is roughly six months old. I wrote to them telling them that I was currently paying back my student loan at an accelerated rate and when that was fully paid off I would then pay off my credit card which I personally taught was trifling in size and age. My student loan will be fully repaid during December. In the mean time I told them I was happy to incur the interest on this debt, as surely that is how banks make their money from credit cards.

    It would appear that they have since sold my debt to a collection agency and due to the loss on this are kicking me out of the bank, forcing me to close my current account and all other accounts.

    This appears to me to be both heavy handed and dumb. I am certain this will also have future ramification in relation to my credit rating, which I am also not too pleased about.



    Is their anything I can do?

    Ignoring the issue with the Bank, Paying off a loan at an "accelerated rate" when you have outstanding credit card debt does not make sense. Credit card debt is more expensive than the loan.


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    #4
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Bad idea paying one debt and not theirs. Its obvious they would be pissed at you and are looking to terminate your accounts. They can also choose who they have and you have obviously handled your debts wrong.

    It may only be €600 but its more your decisions that have got you in trouble. You obviously have some funds available to pay with it and they are not getting anything..

    Maybe start paying them back if you want to keep your account.

    They most likely have not sold it to a collection agency but have them acting on their behalf as you were not responding to their requests.


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    #5
    3DataModem
    Registered Users Posts: 3,997 ✭✭✭3DataModem


    Why pay extra off anything when you have credit card debt? It is by far most expensive kind of debt.


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    #6
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    Is their anything I can do?

    Not really. You made an assumption, but it was the wrong one and it'd proved to be a costly move.

    Unless a financial institution has actually agreed to your request, you should never make the desicion that it's just going to happen because you've asked. They would undoubtedly have tried to contact you in the intervening time, and if you ignored all those requests - well you can't be that surprised that they might not want to do business with you? They're going to see you as someone who isn't responsible and they don't want that risk!


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    #7
    Immaculata
    Registered Users Posts: 244 ✭✭Immaculata


    I don't think there is anything you can do now, except take the hit.

    The bank have already lost money on your debt to them if they've already sold your debt to a collection agency. The collection agency 'buys' your debt at a fraction of the total amount and then tries to make a profit out of you by getting you to repay -- which of course, you must do as you legally owe the money.

    So it's unlikely you could ring them up and arrange to make a payment and avert the account closure. You could try it, though. I would try, if I were you.

    But if it's no dice, when you have a credit card debt in future, at least pay the minimum on it to keep the bank sweet and your credit rating in good order.


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    #8
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    I don't understand why for €600 you couldn't just keep paying the minimum payment? :confused:


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    #9
    Rented Mule
    Registered Users Posts: 5,153 ✭✭✭Rented Mule


    This is not meant to be disrespectful to the OP but WOW ....just WOW.

    There needs to be a greater emphasis in schools in regards to life skills such as dealing with monetary issues.


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    #10
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Rented Mule wrote: »
    This is not meant to be disrespectful to the OP but WOW ....just WOW.

    There needs to be a greater emphasis in schools in regards to life skills such as dealing with monetary issues.

    Agreed but as well its just common sense.

    If someone owed me money and they advised me they can pay me back yet as they are paying off someone else an accelerated rate and i was going to get nothing for a while you can be sure i would be pissed and would not take it lightly.

    The banks get bad press for good reason but its situations like this were the bank are completely warranted in their actions.


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    #11
    1966
    Registered Users Posts: 1,655 ✭✭✭1966


    Min monthly payment on €600 credit card is only €12 or thereabouts pm. Surely this could have been serviced - as you said you have been accelerating other loanrepayments !


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    #12
    beanyb
    Registered Users Posts: 1,151 ✭✭✭beanyb


    Contact the bank and make an agreement to pay off the debt with them to pay it off on Monday morning. They'll probably accept something small, but it's better for you to pay off as much as you can afford, because interest will continue to accrue. The shorter time you pay it off in, the less money you pay in the long run.


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    #13
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    I guess your weren't even making the minimum payment on the credit card then, otherwise they would not have sold the debt off. As it stands, you've screwed yourself with that bank, and they have every right to close your accounts. There's nothing you can do about it.

    This black mark will also stay on your credit record (for 5 years, I believe), which means you will not be getting any more loans, overdrafts, credit cards, or anything that require a good credit rating, until then. You may even have trouble opening a new current account.


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