NatWest/RBS account closure!!!

Morgans_Dad

Anyone else had this? My NatWest classic card open for just over a year now, never missed payment, never gone over credit limit. Disappeared off online banking this morning so I gave them a call to check why - told my card has been cancelled due to bank policy. After threatening to move my current account they eventually went from you have to write in to get the reason to we have re-assessed all customers yesterday and those not meeting new criteria have had cards cancelled!!!

I did point out that their suggestion on website is a downright lie "Credit limit increase - You can ask us to review your credit limit after you’ve had the card for six months." Yeah right?? After 10 months of good running no increase, after 13 months closed without warning. I also have 2 other cards, a contract mobile and a creditbuilder loan all showing green's on Experian - these weren't even there when I originally took this card out...

Be warned people they must have SERIOUSLY increased their criteria if i've gone from ok for a £800 limit to not ok despite increasing my credit score considerably over the last year.

Morgans_Dad

Anybody please??? I've been led to believe this has happened to a number of customers over the last couple of days. If this isn't the case I will appeal as even Natwest have admitted i've done nothing 'wrong' to cause this to happen. It's just a reshuffle of risks but I thought the point of RBS group being backed by the taxpayer was to increase lending, not withdraw accounts previously held in good order?

What are my chances of appeal with this anyway bearing in mind they gave me no notice whatsoever. I can still pay off minimum payments if I wish (in their dreams) as they are going to send normal monthly statements but isn't this a bit backwards? They usually close and demand full balance?

Cheers

CannyJock

Morgans_Dad wrote: »

I also have 2 other cards, a contract mobile and a creditbuilder loan all showing green's on Experian - these weren't even there when I originally took this card out...

So you have more debt and available credit showing on your report now than you did then?

CannyJock

Never does any harm to send in a letter of appeal. In a lot of cases it's the only chance to get an automated decision overturned if you're lucky enough to get a reasonable person to review your case.

Be sure in your appeals letter to labour the fact that you were looking to build a long-term relationship with a trusted high-street product provider and express your disappointment that an impeccably operated account has been closed with no forewarning.

Technically, they're within their rights to close accounts indiscriminately, it's just one of those things.

Personally, I'd be tempted to put in an application for another card and if necessary appeal any decline you get there, citing your responsible credit management (hopefully going back more than 1 year).

EDIT: Taxpayer backing was given without any sensible criteria attached, or any method for tracking where the funds would actually be used by those who received it - which is a huge "duhhh" to the powers that be - but that's a whole other debate

Morgans_Dad

"So you have more debt and available credit showing on your report now than you did then?"

Yes, but all that was on my report before was old defaults and missed payments (4-5 years old when they gave me the card). Now some of these have dropped off and been replaced with 4-5 active and upto date accounts. Only two credit cards though with quite low limits and balances.

I don't see how they can use the things have changed line when talking about risk. Any fool can see they took a chance with me a year ago, a chance I was grateful for and never abused. Something doesn't add up

ALIBOBSY

From this site and other forums it would seem to be standard across most if not all the providers.
Many people who are up to date and have no credit problems have suddenly had cards cancelled or limits slashed. People with offsett mortgages have had their limits slshed as well.

So yes the banks cocked up and brought the country to its knees, we bailed them out and now they are pulling as much credit as they can.
Is it fair? Not at all, but when did the bankers ever care about anything but more cash.
Is it legal? Sadly yes.

Personally I don't believe the banks should have been bailed out the government should have guaranteed all personal savings and let the rest go to the wall. A load of bankers would have lost their jobs, the city would have had much more of a shock than they had (too cushioned by half :mad:) and things might actually change.

Non of which helps you, sorry. It may be worth a complaint, but nothing else you can do.

ali x

teddypicker

Sorry I can't be of any great assistance but I've got a current account, savings account and credit card with NatWest and I've not experience any problems

Victis

Alibobsy, can you tell whether this practice (cancelling cards or cutting limits) is on the increase at this time or is something that is just on the go at any time.

I had a card with the Halifax cancelled recently . I was never late in payment, I was never over limit. In fact I was £12 in credit on a limit of £8000. It stunned me to receive their letter telling me that my card was cancelled. Who do they think is a good risk? Sorry stupid question.

liesauk

Just wanted to put my point in, I too was surprised when on Friday I went to use my card to be told it had been declined, I logged into online banking yesterday before calling Natwest to complain to find my accounts had disappeared. I too have had my accounts withdrawn for no reason, apart from I DONT have an overdraft, I DONT go overdrawn, I DONT miss payments. Are they withdrawing facilities from those that they are NOT making money from?? I phoned them and they replied that they don't have to give a reason and they won't do. They have every right in their terms and conditions to remove banking facilities. I did say that they had to give me notice to find alternative arrangements(I have money going in each week!!) and she said a letter was on its way and the only way to access my money was to go into branch!

I am right now desperately searching for a new basic bank account! GrRRR natwest are crap.

liesa
xx

izools

Lloyds TSB are a good bet.

They have UK based call centres open 24/7, their branches are normally fairly large and quick service, IME the in branch staff are more professional than in any other bank I've been to (and I've been with all of them...)

My OH has held a Lloyds TSB account for over a year and had no major qualms except that they won't increase his OD limit. To be honest, he's on enough of a salary not to need an increase and in any case they would have picked up his O2 default via CAIS hence not allowing him further credit.

I've just switched from barclays to Lloyds and I can tell you, first impressions last, and my first impressions of Lloyds TSB are absolutely brilliant!!