Barclaycard just cancelled card for no reason

Ian_Milsted

pb3 wrote: »

Hi Ians1,

I think you should let this one go. Attempting to take this further, you mentioned FSA a few posts back, will get you nowhere. Emailing or writing them will probably get you a standard template response if you're lucky.

I sympathise with you for what its worth. Barclaycard took over one of the credit cards I had (LPF) and I eventually got a letter reducing my credit limit from around £4K I think to £260 :rolleyes: What hacked me off was the letter strongly implying that they'd done this due to my managing the account in an adverse way.

If the letter was better written and had said that the limit reduction was due to dormancy for an extended period then I would not have had a problem. As it was I went through a brief period of anger and resentment (only natural) then I moved on.

You'll see from reading the board that closing dormant or non-productive accounts or lowering the limit drastically to encourage cancellation is now increasingly common practice by CC companies. Egg did a similar exercise a while back. I'm sure a load of other people got the same letter - not just you.

I think DaveBoy's response was a tad blunt. But he is right in that you should move on. Turning this into a crusade against Barclays will get you nowhere except bitter and twisted.

Can you see a pattern emerging on this. The credit card companies are acting quick to either reduce credit limits or are refusing to re-issue cards when they are due.

I bet all of these cards were took out prior to 1st April 2007.

They are acting quick to reduce their exposure to potential claims to have the balances on these cards cleared.

No matter what some smart ar*es are saying on this blog, if you have a card which is newer than 1st April 2007 and you have acted correctly i.e. timely payments etc, I bet not one of you have had a problem with credit limits being reduced etc.

mikej101

I've just had the same - well, similar experience with EGG.

My card was up for renewal and they just haven't sent a new card - as they have for the last 7 years - when I phoned them they tell me they are not renewing my card. No letter, No reasons - nothing. Like Ian I have always cleared the card within the time limits to avoid interest payments. After all that is supposed to be the way credit cards work - it's one of the ploys they use to get you to sign up for one!

I spoke to my niece, who happens to work at EGG in Derby and she informs me they are getting rid of the 'NON PROFITABLE' card holders. As a previous poster said - if they don't cover the costs - they don't want you.

Doesn't seem much point in complaining to anyone but you do have my sympathy Ian. On second thoughts I will write a letter and complain, asking for a explanation for their decison. Doubt if they will even bother to answer.

withnell

They clearly stated their reasons in the letter - probably having the increased credit of the second card means they feel you do not have the means to pay both of them back should you run into difficulties. They're only restricting further spending on your card - surely its within anyone's right to say they don't want to lend you even more money?

It is unfair to claim that they're only doing it as you've oppened a second card - if so my account would have been closed down several times over the last few years as I've opened Egg / Shell Mastercard / Britannia Card

thriftymomma

Ian_Milsted wrote: »

Can you see a pattern emerging on this. The credit card companies are acting quick to either reduce credit limits or are refusing to re-issue cards when they are due.

I bet all of these cards were took out prior to 1st April 2007.

They are acting quick to reduce their exposure to potential claims to have the balances on these cards cleared.

No matter what some smart ar*es are saying on this blog, if you have a card which is newer than 1st April 2007 and you have acted correctly i.e. timely payments etc, I bet not one of you have had a problem with credit limits being reduced etc.

Interesting theory. I will be looking out for this then as I took my card out years and years ago. Hope they don't refuse to reissue. I'll be gutted!

Dajoruna

Had a similar experience myself recently, as has my sister. I got a letter (very like the one at the beginning) slashing my credit limit by almost half and withdrawing my ability to withdraw cash on the card. Renders it pretty much useless travelling and the limit was slashed to my remaining balance so I effectively cannot use the card. As mentioned by others, my own rating with Experian is 970 or something similar. As a student I am going to take a fair while to clear the card but have never gone over the limit or received a charge so I guess they don't make money off me.

thriftymomma

Dajoruna wrote: »

Had a similar experience myself recently, as has my sister. I got a letter (very like the one at the beginning) slashing my credit limit by almost half and withdrawing my ability to withdraw cash on the card. Renders it pretty much useless travelling and the limit was slashed to my remaining balance so I effectively cannot use the card. As mentioned by others, my own rating with Experian is 970 or something similar. As a student I am going to take a fair while to clear the card but have never gone over the limit or received a charge so I guess they don't make money off me.

How long have you held the card?

never-in-doubt

Dajoruna wrote: »

Had a similar experience myself recently, as has my sister. I got a letter (very like the one at the beginning) slashing my credit limit by almost half and withdrawing my ability to withdraw cash on the card. Renders it pretty much useless travelling and the limit was slashed to my remaining balance so I effectively cannot use the card. As mentioned by others, my own rating with Experian is 970 or something similar. As a student I am going to take a fair while to clear the card but have never gone over the limit or received a charge so I guess they don't make money off me.

Your experian score means absolutely nothing in the grand scheme of things i'm afraid - it is purely their mathematical guide but is totally irrelevant and tbh, shouldn't even be there cos it gives people a false representation and results in a lot of refusals....

mrbirchwood

withnell wrote: »

They clearly stated their reasons in the letter - probably having the increased credit of the second card means they feel you do not have the means to pay both of them back should you run into difficulties. They're only restricting further spending on your card - surely its within anyone's right to say they don't want to lend you even more money?

It is unfair to claim that they're only doing it as you've oppened a second card - if so my account would have been closed down several times over the last few years as I've opened Egg / Shell Mastercard / Britannia Card

Yes, even more reason to have a least 2-3 valid cards, the you are then in a position to call the shots.