‘Not everyone will be able to clear what they owe’
We’ve received half a dozen emails from MoneySavers in the last couple of days alerting us to the credit card closure – and several have expressed concern.
Alison Duddridge, 67, from Bury in Lancashire, was one of those to receive a letter from Saga telling her account was being closed. It said: “If you owe money on your credit card when our agreement with you ends… all of your outstanding balance (including any fees, interest and other charges which have been applied to your account as part of the outstanding balance) will become due and owing in full.
“However, if after your account has closed and there is still a debit balance [sic] we may decide to transfer the outstanding balance that you owe us to a third party.”
Alison told us: “The letter says any outstanding debt could be transferred to a third party, but at what interest rate?
“I feel sorry for those customers who owe a lot on their credit card – I’ve been able to transfer what I owe to a 0% credit card, but not everyone can do this.”
Another MoneySaver, David, added: “Why have they not put an alternative in place before this change? This will affect many older people, being Saga.”