Are credit card providers snubbing good customers?
Consumer Focus are calling upon the Financial Services Authority to investigate credit card companies, as evidence increasingly shows that they are snubbing customers who they are unlikely to make any money out of.
New data sharing rules were introduced in January that allow credit card providers to exchange information about customers on how much of their bill they pay off each month, and if they are ‘rate tarts’ who regularly switch from one zero interest rate deal to another.
However, this information is meant to be shared in order to help to prevent people falling into debt and not for commercial purposes. Sunday Times reader Richard Phillips spoke to the newspaper after being rejected for an Abbey Zero card in June for failing to meet Abbey’s “business criteria.”
Mr Phillips has a credit score of 910 out of a possible 1,000, earns a six-figure salary and has never missed a payment in 40 years. The main reason he applied for the card was in order to make use of the perks that come with it, such as its lack of foreign loading fees for purchases made abroad.
Ed Mayo of Consumer Focus, the government’s consumer watchdog, told The Sunday Times: “Credit card providers seem to have given their game away. By refusing credit to consumers with excellent scores, they appear to be measuring something other than risk.
“We need to know if the rules are being flouted and if people’s information is being used inappropriately. Consumers need reassurance and it’s up to the Financial Services Authority to look into this.”
None of the major credit card providers were available to speak to Bitterwallet as they were all guzzling away at a trough filled with fifty pound notes like the greedy pigs they undoubtedly are.
Hang on, it was actually because we didn’t approach any of them. Apologies for any embarrassment caused, etc, blah, etc…