It sent a final reminder on 27 January, requiring repayment by 10 February. During a call on 3 February, Joe asked for an extension to the arrears deadline, noting the delay in receiving the email of 30 December. Following the call, Joe understood that the bank had given him until 17 February to clear the arrears. However, on 11 February the bank demanded full repayment and cancelled the card. On 7 March, it referred the debt to a collection agency. Joe complained about the bank’s actions, saying the bank had an obligation to provide opportunities to clear the arrears. He also complained about the bank's handling of his complaint.

Our investigation

We reviewed the credit card terms, which required Joe to make minimum monthly repayments. His failure to do so breached the contract, giving the bank the right to suspend or cancel the card. We found the bank’s written communications were generally clear, although the 7 January letter incorrectly said it had previously contacted Joe about the arrears. This was due to a system problem, which the bank later acknowledged and apologised for. We listened to the 3 February call and found the bank agreed to extend the repayment deadline till 17 February. The bank later said this extension was conditional on a guarantee of repayment, but it did not clearly communicate this condition during the call. Cancelling the card on 11 February and demanding full repayment before the agreed deadline was in breach of the 3 February agreement. However, these steps did not disadvantage Joe to any real degree because the bank subsequently gave him a further opportunity to clear the arrears before referring the debt to a collection agency. Joe was unhappy his complaint was not escalated to senior bank staff, but we found the bank considered his complaint appropriately, including by telling him he could take his complaint to us.

Outcome

We did not uphold Joe’s complaint.