Poor reward

geoffd50

Anyone any thoughts on the following, or maybe had the same treatment ?

I've had a CC from RBS for many years, and over time its limit has been increased, by them, to a fairly large figure. More recently, having other 0% purchase cards, I havn't used it much, but have kept it because it's useful for large purchases without compromising my current purchase card's credit limit.

RBS though have a problem with this, and sent me a letter stating that 'for security reasons, to avoid fraud, and because I hadn't used the card recently' they were reducing the credit limit to something more appropriate. They dropped it by over 90% so that its limit is now only a few hundred - effectively useless.

They also said that if I used the card (even for a £1 purchase) by a certain date, my existing limit would be maintained.

When I pointed out that this usage to maintain the limit made the card no more or less secure and was illogical, my comments were ignored and I was told the decision couldn't be reversed - it was a done deal.

The Ombudsman refuses to become involved - saying RBS are merely exercising their 'commercial policymaking decisions'.

So having been a loyal RBS customer (current and card) for 30 years, never missing a card payment (to RBS or anyone else), and rarely overdrawn, I'm repaid by effectively having my credit card withdrawn simply because I choose not to use it regularly. I've done nothing wrong, I'm a sensible card user, not in debt, but the bank responsible for the worst recession for years penalises me. And it's all within their rules !

Comments ?

G

squack

yes its very frustrating when this happens... i'd just apply for another card with a different company. maybe a cashback one if you are going to use it for spending then paying it back before you have to pay interest

anselld

Why stay with a failed, government-owned bank?
Waste of effort complaining.
Get yourself a decent cashback card instead.

squack

Yes hope the OP gets treated better elsewhere...i take it that RBS (royal bank of scotland) is different from Bank of Scotland ? bit confused but just got a card from the latter

td_007

geoffd50 wrote: »

So having been a loyal RBS customer (current and card) for 30 years, never missing a card payment (to RBS or anyone else), and rarely overdrawn, I'm repaid by effectively having my credit card withdrawn simply because I choose not to use it regularly. I've done nothing wrong, I'm a sensible card user, not in debt, but the bank responsible for the worst recession for years penalises me. And it's all within their rules !Comments ?
G

The fact that you are NOT using the card means that bank is "wasting" the credit line extended to you. So it makes business sense for the bank to extend that credit line to someone else who even if they repay in full every month make money for the bank.

Robert_Sterling

I think it is entirely reasonable to withdraw a loan facilty from someone who hardly ever uses that facility.

I would go further and say that nobody should be allowed to have more than one credit card.

geoffd50

OK, I admit to being peeved to have been treated this way by RBS, but...

1 No one has commented on the fact that by using the card I could have kept its limit. Perhaps someone could explain to me (a) how this is connected to 'security', and (b) how it alters this so called 'line of credit that could be used by someone else'.

2 I do understand that RBS may be motivated by the fact that they don't make money from me because I don't use the card - anymore than they don't make money from thousands of other customers who pay off in full every month. What's the difference ?

3 And as for only being allowed one card...Back in your cave !
And while you're there contemplate the difference between cash in the bank for a rainy day, and credit on a card for a rainy day.

And finally, yes I can get another card, but not with the sort of credit limit that's just been taken off me.

I know I'm biased, but I feel I have been penalised but have done nothing wrong. And RBS will get away with it - again !

G

opinions4u

geoffd50 wrote: »

Perhaps someone could explain to me (a) how this is connected to 'security',

If somebody stole the card the bank is liable for any losses.

(b) how it alters this so called 'line of credit that could be used by someone else'.

A bank has to set aside capital for any credit facilities it offers. If it's not generating any income from your card, then this capital is dead money for them.

2 I do understand that RBS may be motivated by the fact that they don't make money from me because I don't use the card - anymore than they don't make money from thousands of other customers who pay off in full every month. What's the difference ?

They earn a commission from card use and full repayment. They earn nothing from you.

I know I'm biased, but I feel I have been penalised but have done nothing wrong. And RBS will get away with it - again !

RBS are one of those banks accused of not lending in the recession. One thing that inhibits them is the large credit limits offered to customers who don't use their cards at all.

I'm not saying I would be happy in your position, but there is sense to what RBS has done here.

ElkyElky

Let's look at this at another angle.. it is entirely up to the bank to choose whom they lend to, and how much they'll lend.

You don't have a leg to stand on, unfortunately.

Any

Completely agree with Opinions4you. Especially on the point that they don't make any money out of you while if they lend it to someone else they will earn commission on transactions made.

I would also add that if you are not using the card then you are not expecting any transactions on it so you are less likely to check it and therefore notice any fraudulent transactions in time.. = security issues.

Just use the card next time you purchase fuel for your car and stop moaning.

Any

Robert_Sterling wrote: »

I would go further and say that nobody should be allowed to have more than one credit card.

completely disagree.
I was before now in situation where bank stopped transaction because they thought it might be fraudulent and without having a second card as a back up I wouldn't be able to buy the item.

And as it was online I wouldn't like to use my debit card for that purchase.