New AMEX card - but balance transfer rejected

The_Boss · 3 May 2006 at 10:20PM

The Mrs applied for and was accepted for an AMEX card with the life of balance offer.

However, today a letter arrived saying "Thank you for your request to transfer to your American Express Credit Card account. I regret that on this occasion your balance transfer request has not been successful. Nonetheless, thank you for your interest and please continue to enjoy the full benefits of using your American Express card".

Now I dont know anything about the terms and conditions, but she was accepted with a £10k limit. I remember someone else here also had the same problem, but after a search I cannot find it. I find it scandalous that a company can lure someone with a carrot of the life of balance offer and then refuse it. This was the only 'benefit' she wanted to use, and so now she is going to close the card. A total waste of a credit search thanks to them.

David_Mee · 3 May 2006 at 10:30PM

A lot of companies only let you transfer a percentage of your credit limit - did you fall foul of this - I think I remember I could transfer 96% or something daft - they said it was to act as buffer in case DD problems would send me over credit limit and stop Life-of-Balance deal dead in its tracks??

The_Boss · 3 May 2006 at 10:33PM

Her limit is £10k and she wanted to transfer £4k from her egg card and £2k from her Barclaycard. So well within the limit.

Also, if there was a problem, the person on the other end of the phone would have told her at the time.

The_Boss · 4 May 2006 at 10:30AM

Just looked at the terms and conditions, and this is what it says about balance transfers

Standard Interest Rate and Balance Transfer Rate:
1. Balance Transfers conducted within the initial 6-month period from the date we open your account will be charged at a Balance Transfer rate of 5.9% p.a. (monthly rate 0.48%) fixed for a period of 6 months from the date we open your account and thereafter at the standard rate of 12.9% p.a. (monthly rate 1.02%), fixed until you've paid off that balance in full. This low Balance Transfer rate of 5.9% p.a. will not apply if you do not pay the minimum amount each month. Balance Transfers conducted after the initial 6-month period from the date we open your account will be charged at the standard rate of 12.9% p.a. (monthly rate 1.02%), fixed until you've paid off that balance in full. We reserve the right to refuse any Balance Transfer requests. For example, we cannot accept Balance Transfers from overdue accounts, exceeded Credit Limits, overdrafts, loans, HP agreements or any Amex accounts. We are not liable for any overdue payments or interest incurred. Payments to card companies will normally be made within 30 days from receipt of your statements and we will advise you when payment is made. We may charge a handling fee in relation to Balance Transfers. Any such handling fee will be 2% of the Balance Transferred or £50, whichever is the lesser.

So there is nothing in there that applies to her. What a vague reason it is to say "we reserve the right to refuse any application" when the reason for her applying, as she told the person on the phone, was for the balance transfer offer.

MatthewF31 · 9 May 2006 at 4:48PM

Hi

I had the same thing with AMEX Nectar Card.

Applied and got £7,000 Credit Limit - then applied for £1300 balance transfer at the 5.9% for life rate and was refused. This was with no change in personal circumstances or credit history and was from another Credit Card so didnt break their T's&C's.

It was also confirmed to me that AMEX had no problem with me spending right up to my 7K limit for purchases at 12.9% but i did not meet their criteria for the 5.9% offer. What a crock of s***

Like you i only took the card for the offer and i am fuming with AMEX and have sent a letter special delivery to Brighton for an explanation.

I have never in my life had a balance transfer refused before and this stinks to high heaven of a con by AMEX to get people signed up to their card but only letting a tiny percentage have the BT

Matthew

The_Boss · 9 May 2006 at 5:03PM

Yep, this is a total joke - the fact that someone has wasted a credit search to get the product that they wanted, on the assumption that the transfer would be carried out on completion. It also makes me think they would have carried out another search in order to decide whether she was applicable for the offer, which would also be scandalous.

MatthewF31 · 9 May 2006 at 5:19PM

I havent seen any evidence of a 2nd search using Credit Expert from experian - which is actually even more anoying as it proves that they based their decision to refuse me the BT on the same info they gave me the card with the 7K limit!!!

Matthew

The_Boss · 9 May 2006 at 5:35PM

How can this be seen as anything more than a blatant attempt to get people to apply for their card using a carrot, and then pulling it away afterwards in the hope that they will spend the money up to their limit and then charge them extortionate amounts of interest.

I mean, two people given a £10k and £7k limit. If you were not 'creditworthy enough', why the hell give such huge limits?

I shall be writing to the Office of Fair Trading on behalf of the Mrs

srvben · 9 May 2006 at 10:37PM

I'm new to these forums, so forgive me if this has been mentioned before...

...but is it worth contacting Amex and quoting their obligations under the Data Protection Act with regards to why the balance transfers were declined? My understanding is that for a small fee companies are legally required when requested to provide all data they hold about a person, either on paper or electronically. I know of this working successfully with some internet service providers and other companies, so do the same rules apply to banks and credit companies? Pehaps worth some further investigation?

Ben

Astaroth · 10 May 2006 at 6:57AM

It only applies to electronic records and certain paper ones but the likelihood is that the computer notes will only say "BT for £X requested", "BT declined, letter BT101 sent" which would be non the clearer - they arent under a DPA requirement to disclose their selection criteria

billion25 · 10 May 2006 at 1:48PM

Boss:

Amex probably has some way to predict wether the applicant will spend on the card as well as balance transfer. If they think the applicant is only going to BT, then there's no money in it for them and therefore they decline the BT. Surely they have the right to only approve profitable customers?

New AMEX card - but balance transfer rejected

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