Can I be expelled for not using my card enough?

lisyloo

Seems quite reasonable to me that they can withdraw this although they SHOULD tell you (but it's genuinely possibly for letters to go missing in the post).

It costs them money to service your account, plus the larger issue is that they need money available to finance your credit as you could potentially use it at any time.

There are new capital requirements on the banks.
I don't pretend to understand all this, but they do have to have some money on reserve for people who aren't spending and aren't making them any money.
I think it's quite understandable that they can no longer offer this service.

However it would of course have been nice to be informed.
Perhaps the letter just got lost?

Jakg

Credit is not a right.

Number_Six

Well this is an interesting thread, I've just got a new MBNA card, as others have said it's a backup, I have a LloydsTSB Mastercard, so I wanted a Visa card, and I always pay my credit cards off in full every month. I simply use credit cards for safety reasons, if my debit card gets cloned it's my money they are stealing. If my credit card gets cloned it's theirs and I can't afford to wait 6 or 7 weeks, with all the hassle, before any money gets refunded.

So what they are saying basically is they need to make so much money from you or it's goodbye. In one sense it's fair enough I suppose I'd prefer a monthly or annual charge to cover costs and not have them withdraw my credit card.

Paul_Herring

Number_Six wrote:

So what they are saying basically is they need to make so much money from you or it's goodbye.

No. They're saying you're supposed to use it, and not leave it lying in a drawer or unused in your wallet.

Yes, this could be construed as "not making money out of you," but it could also be construed as "why should they have potential liabilities on their books that isn't being used, when it could be offered to someone else who would use it?"

sc867

lisyloo wrote: »

However it would of course have been nice to be informed.
Perhaps the letter just got lost?

That may be, but when a letter of that importance is being sent out, surely common sense would dictate that you get a signature to prove that it has been delivered?

lisyloo

I wouldn't say it's of extreme importance.
You should never go anywhere with only one form of payment.
What if it doesn't work for some technical reason?

I don't know of any company that would send that sort of thing by recorded delivery.
If you are the 1 in a million that's lost in the post then that's very unlucky, but I don't think it justifies the extra cost.

Just my opinion.

stebiz

Seeing a lot more of this over the last 12 months or so. Credit Card companies seem to be getting their house in order. These cards can be withdrwan at any time (as we have seen), credit limits reduced. Nobody is 'safe'. Pay it all off each month, they don't make money - Goodbye. Don't pay it off each month, get a whopping interest rate off you. You can't really win.

Bottom line is. Don't use credit, when you don't have to.

Stebiz