Freeze Laser card due to missed credit card payments. Is this legal?

india

Hi, anyone with some advice please.....

I tried to use my Lasor card last Friday and was declined. It happened in numerous outlets and cash machines. I called banking365 and they told me that as I had a couple of missed payments on my credit card-also by bank of Ireland, they froze my Lasor card in order to get me to ring them regarding my missed payments.

I found this absolutely ridiculous and I'm sure illegal. It left me with no money for the whole of last weekend and to top it off they said a new card and pin will be with me in 3-5 working days. It still has not arrived (5 working days later) and I am left with no means of withdrawing money from my account for the bank holiday weekend.

Does this seem like normal practice? Why did they just not ring me regarding the credit card?

I am appalled by this behaviour. Any thoughts?

drunkmonkey

What do you mean a few missed payments on your credit card, had you defaulted. They may have suspended you as a customer and frozen your accounts. It sounds a bit harsh that they would do it without getting in contact, perhaps they have a wrong number for you.
If your going to miss a payment for something its always best call the business first, I know you can take a credit card holiday, that would have avoided the mess.

My thoughts, pay your bills.

Kensington

Did you miss payments on your credit card (chose not to pay anything in) or did you have direct debits into your credit card, from your current account, which bounced?

india

As mentioned it was a couple of missed payments ie 2. Not a few, not defaulted. 2 missed payments.

I was in the process of changing direct debits over to a new joint account and obviously this account has been overlooked-my bad!

But to freeze my Lasor card/current account with no warning or contact is ridiculous.

Drunkmonkey

'my thoughts pay your bills'...... really not very helpful!

Kensington

It is legit then.
If your account goes overdrawn without an overdraft facility, or beyond your overdraft limit, or you have unpresented direct debits, standing orders or bounced cheques, they'll suspend (and sometimes permanently withdraw) the Laser card facility. All in the T&Cs of your laser card.

It's nothing directly to do with your unpaid credit card as such, only that the direct debit happened to be presented to your current account and it went unpaid so they suspend the Laser facility attached to your account.

They (all the banks) used not to take a stance before but they've clamped down big-time recently on even the smallest blips.

Does the ATM facility not still work (try a BOI machine in a BOI branch). Unless your current card has been cancelled entirely pending replacement? Bit ridiculous if they stopped any access to money full stop though.

india

Hi Kensington, thanks for the reply

No the card was completely canceled and would not even work in the ATM. Hence sending me a new one with new pin.

I do understand the banks needing to clamp down etc but normal course of action when these problems arise is to be contacted first. It seems very harsh and unjust to cancel the card in order to force me to call. The strange thing is, the direct debit was actually canceled by me but I had overlooked setting up a new one with my joint account. So direct debits had not been returned or unpaid etc.

Thanks again for the helpful post though. Think it's the financial ombudsman from here. I am now going to be without a card for 10 days.....

BuffyBot

You need to use the banks internal complaints procedure before you can go to the Ombudsman. Have you checked that all your contact details are correct/up to date with BOI as suggested above?

Solair

Is your current account in order i.e. is it in credit - They may have removed your overdraft facility as they consider you a credit risk as you're not maintaining payments on your credit card.

Banks run credit risk assessments on live credit facilities like OD and credit cards all the time, particularly if someone's basically defaulted.

Missing one payment on a credit card could be an oversight or an error of some sort if it's rectified quickly, but if you've missed two or more, they will assume that your circumstances have changed and that you are unable to pay.

So, they will have probably reassessed your OD too.

As far as I am aware, they cannot however pay themselves out of your current account without permission nor can they freeze your current account if there are funds in it, without a court order to do so.

You should contact the regulator / ombudsman if you feel you've been unfairly treated.

I would start though by calling into the branch and speaking to someone face to face to figure out what's going on!

To be fair to the banks, they will usually not cancel a debit card facility if it's just a temporary problem.
Has the account been in unauthorised OD for more than 30 days, or is it very seriously overdrawn ?