Northern Rock Credit Card (Northern Rock)

Member Name: AliB

Product:	Northern Rock
Date:	10/08/00 (628 review reads)
Rating:

Advantages: Low interest

Disadvantages: Bad service

I recently bought a house, and my independant financial advisor recommended a Northern Rock 'Together' Mortgage. I checked it out thoroughly and it is a very good deal. Part of it is the secured mortgage loan (the good part), and part of it is an unsecured loan in the form of a £5000 credit card. Being my first mortgage and first house (having previously lived in rented, furnished accommodation) I used this credit card for refurbishment, redecoration and general house stuff. As the credit card is part of the mortgage deal it has a very low interest rate and very low monthly payments (2% of the balance), these are its good points. I decided to pay by direct debit so sent in the mandate with the application form. Having received the card and the PIN, and having used the card (quite a lot!) I received my first statement. I checked my current account to make sure the direct debit had been set up, and it was showing on my account, so I thought no more of it - that is until I got a letter from Northern Rock telling me my account was in arrears, could I make a manual payment ASAP. They told me the direct debit had not been set up in time! I could not believe that they had sent out a statement without at least letting me know the direct debit hadn't been set up on time, I made a manual payment the day I got this phonecall. After several phonecalls they reversed the charge on my account for going into arrears. But they were not very helpful at all (in fact they were quite rude - one woman came through to me on the phone and said "what's the problem"!) and I was not allowed to use my card until the manual payment had cleared. I wrote a harshly worded letter stating my disappointment with their service, especially at the fact that I had been treated as though I defaulted on a payment, when in fact it was their fault. The result was a letter in response saying that I had not, in fact, signed the direct debit mandate, could I fill out anoth
er. This, I admit, was my fault, and a rather stupid oversight BUT when I checked my current account again they HAD set up the direct debit and cancelled it - they only realised I hadn't signed the mandate when they looked into my account after receiving my letter! I am sure it was probably illegal, them setting it up in the first place but I didn't pursue the matter any further.
Today, though, I had a phonecall from Northern Rock Card Services telling me a £500 convenience cheque had come out of my account taking me well over my limit. I was a bit shocked and said I'd pay it right away. On investigation, I realised that cheque was one I'd put into my current account on the 6th JULY and which had cleared a few days later. It came off my credit card 33 days later! As the funds cleared without problem in my current account at the time, I didn't think to check they had come off my Credit Card. So, again, I phoned up Northern Rock, first checking the cheque situation - I was told, for all intents and purposes, the credit card convenience cheques were just like bank account cheques and if I paid one into a bank account on a Monday the funds should have come off the card and into the account within the next few bank working days! I asked to speak to a manager, I obviously wasn't put through to one cos the lady on the phone had to keep checking everything with someone else. But, basically I was told that these cheques can take 28 days. They couldn't elaborate any further, but it seems they'll pay them but not necessarily from your account for another month! Absolutely ridiculous. They said they would reverse the charge I had incurred for going over my limit, but they would not increase my credit limit to compensate, so I'll probably end up being charged again! I just cannot understand how a credit card cheque could have cleared in my bank without the funds leaving my credit card account!? Even the low interest rate is n
ot enough to make up for the terrible service I have received, and I'll be transferring the balance very soon.
Rant over!

Summary: