Are credit card providers snubbing good customers?

20 July 2009

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…

TOPICS:   Credit Cards   Economy   Consumer Advice

10 comments

  • David
    This is definately going on. Been turned down for a Barcalycard for "not meeting criteria", although have excellent credit score....
  • errrr
    A company acts in a way to increase their profits. As this is the purpose of said company, the surprise stems from where again?
  • Andy D.
    The crux of the story is they're possibly making unlawful use of data. If it's true, it's yet another example of financial institutions generating profit using shady and underhanded methods. Nobody said anything about being surprised...
  • F.D. A.
    Credit card? Who needs them. Better go to the pawnshop or meet Al, the local lender down the pub, and ask him to lend a tenner for day.
  • gravy
    Ditto. Last year I earned several ttimes the average. Tens of k in the bank and 7 with bank in question. No debts. One unused credit card and one used & paid in full monthly. Lloyds TSB decided to turn me down (without the possibility of appeal).... due to my "credit level". On the electoral whatsit and last checks I ordered showed nothing nasty. If they'd have said "business reasons" I could've translated that into "won't make us any money" easily enough but now they force me to order another credit report.... Can they tell me exactly why they refused me? No, of course they can't, only to suggest I contact experian. Wankers.
  • Nobby
    I join, get promotional items (or introductory high rate cashback), pay off balance and not a penny in interest, then cancel. I've done it loads of times and never been refused a card. So the only money they get from me is through their charges to shops.
  • Dirty R.
    oooh yeah baby!!!
  • Dave S.
    Ed Mayo? Is that a joke name? Like Richard Ed and Mike Hock?
  • Darren
    Gravy, if your that minted with 10s of thousands and 7 with another? why the need for a credit card?
  • Ten B.
    [...] credit card providers turning their backs on those of us with a good credit [...]

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