General Forum

Hi Any credit card experts out there? A client requested that their credit card be closed. The card sits with their bank.  It looks like interest is still being charged on the credit card's outstanding balance, is there room for the client to request zero interest on the balance outstanding?

Great to see a post like this as these discussion boards begin! Hope it is a warmer day out east Irene! Not sure of where regulation/law would sit with that much detail but I think it is always worth asking for these arrangements and making the case as to how it will help your client avoid futher/ future hardship. You've likely checked already but if it looks like the credit card or an extension on that line of credit was unaffordable at the time then it is very much worth exploring with your client the option of a complaint to the bank. At the same time a call to BOS to get it on their radar in case you need to escalate it down the track. https://bankomb.org.nz/make-a-complaint/ I have heard of BOS doing good escalation that has seen overdrafts waived and apology payments recently. The mentor had gone there because the bank was refusing to recognise the banking privacy waiver. My number is 02102363233 if any financial mentor is ever keen to see if FinCap policy might be able help or might not have heard of a potential systemic issue before. I'll also be jumping on the discussion boards wherever there is a free minute and know many other mentors have a better idea on how to get things over the line.  

Generally the card won't be closed un less there is nil balance. You can always ask for the card to be frozen and depending on the creditor they be happy to do this.

Hi again Further korero with the FM. Client has a payment arrangement in place and was being charged a late payment fee (June doc showed a reversal of lpf). Interesting to note that the info sent shows that Interest is being charged on cash advances (22.95%), and purchases (20.95%), even though the words below say :- "Your account is now closed as requested. Should any further transactions be received after closure date, a statement will be sent to you for payment." This Credit card sits with ASB.  Views appreciated.

so its all in the wording - the card is closed but interest isn't frozen. A quick chat to the ASB maybe to see if that can happen?