NatWest credit card taken off me

Sian100

Hello, I'm new, and a few weeks ago something happened. I'd like to know if anyone else has had a similar experience recently.

I used to hold a NatWest student credit card. The limit was £500. It was my only credit card. I would only use it for booking things on the internet, and would always pay off the full balance every month on time so as not to accrue interest.

However, at the end of May, NatWest wrote to me and told me that they were operating their rights under my credit card contract and required me to stop using the card, cut it in two and return it to them immediately. There was no explanation as to why they wanted me to stop using it; just that they were exercising their rights under the agreement.

I rang up the number given for an explanation (which, actually, was the wrong extension) and the lady told me that the same thing had happened to a lot of people. It was because of the government putting pressure on them to reduce the amount people are borrowing, and because I met "certain criteria" they were taking my card off me. I asked what these "certain criteria" were, and she said she was not allowed to discuss it with me.

I checked my credit file a week later, and nothing unusual had happened that I didn't know about.

As I said, it was my only credit card and I paid off the balance in full every month. Since, as the lady said, lots of other people have been affected, has anyone else here experienced the same thing recently?

tuux1598g

Hi,

The exact same thing happened to me with a Mint Card (surprisingly Mint and Natwest credit cards are both supplied by RBS?)... after 3 months they just turned around and told me that after a criterea review I no longer met their criterea and so I would need to return the card... despite me having a HSBC one for the last 2 years with a higher credit limit and absolutely nothing negative on my credit file. Strange... at my age (21) I really don't see how my credit could be much better (other than if I'd not gone to Uni and worked for three years F/T instead of P/T of course), contracts always paid off, credit cards that are always paid on time, not too much credit available (just the usual 1 C/C, home phone line, mobile etc.) and a good income for a student - I really don't understand how students in loads of debt and no income still get £1500 credit cards... I get £500 limits max, and then got that taken away (in fact £400 limit on Mint).

Sorry a bit off topic there... What 'criterea' mint (and Natwest in this case) are talking about remains a mistery (as does credit-scoring for me ) but I'm staying away from RBS since the mint incident - absolutely no customer service at all, nobody would tell me what was going on, the guy on the phone simply said 'I really don't know why they've cancelled it' - didn't even get a polite letter (in fact no letter at all until a week after my card was declined!). Haven't been able to get anything further from them - the account is now paid off and closed and I'm going elsewhere, their loss.


Cheers,
Shaun

Sian100

Shaun, thanks for your reply.

Your circumstances are nearly the same as mine- I'm 23, have been studying for the last five years since leaving school, and so have only been working part-time. I do not have a bad credit rating as I have always paid everything on time, bank balance is usually okay, I never go over my overdraft limit, really I'm a very boring person in that way! One of these things must meet some of the mysterious "criteria" that obviously is so important that it has to be kept top secret!

It's interesting that you say Mint and NatWest credit cards are both produced by Bank of Scotland- maybe the credit card call centre is also the same place? (I've worked in a call centre where I had to pretend to be different companies for directory enquiries). Your experience with getting information out of them is no better than mine.

I think the fact that they didn't even send you a letter to warn you is appalling.

Surely they can't just withdraw credit cards without giving a sufficient reason? Does anyone know if they can or not?

As you said, it's their loss. I've taken my custom elsewhere too. I also have trouble getting higher credit limits than £500. Perhaps it is not profitable for them to give high credit limits to those who actually pay them back? (Well, obviously not, but you know what I mean)

I'm not having anything else to do with NatWest, or now you've told me your story, Royal Bank of Scotland or Mint in future. Clearly it seems RBS are the ones at fault.

Astaroth

Given the slating that all the banks but in particular RBS Group got on Panorama last night about irresponsible lending it is not surprising that people are now starting to get their lines of credit removed.

The T&Cs of your cards give both you and the bank the right to cancel the account without need for explaination.

tuux1598g

Sian100 wrote:

maybe the credit card call centre is also the same place?

I would have thought this is the case as when calling the service line no company name is provided, they simply announce something similar to 'Welcome to the credit card helpdesk' and ask you to enter your C/C number.

Sian100 wrote:

Surely they can't just withdraw credit cards without giving a sufficient reason? Does anyone know if they can or not?

Aparently so, however see my opinion below

Astaroth wrote:

The T&Cs of your cards give both you and the bank the right to cancel the account without need for explaination.

But surely common courtesy and customer service would come into it, providing an explanation (even saying that its beyond their control as you suggest) would be a step in the right direction - at least then they would have potential customes in the future (as it now stands I wouldn't go near Mint again purely due to the lack of communication and service in this matter). If they had given an reasonable explanation as to why they were taking the card then maybe customers would be more understanding than angry? just a thought

The_Boss

Maybe they now arent that enthusiastic about lending to people who work part time or are in full time education

Saucepot

In my experience, todays pauper is often tomorrows wealthy man. I thought the reason banks bent over backwards for students was the assumption that they'd be good future customers. Degrees and what have you ment good employment prospects and a future of buying financial products.

Basic good customer relations would be to offer an explanation. If your going to refuse a customer, doing it in a well mannered way maintains the value of your brand.

It seems to me that the norm of the financial industry is to treat customers like cr*p.

Sian100

Thanks everyone for your replies.

Astaroth wrote:

Given the slating that all the banks but in particular RBS Group got on Panorama last night about irresponsible lending it is not surprising that people are now starting to get their lines of credit removed.

Yes, I agree, but aren't they taking the cards away from the wrong people? Both Shaun and I paid off the full balance every month, and had no other cards. So they weren't making any money out of us.

On the other hand, as the Panorama programme showed, there are people who owe tens of thousands of pounds in credit card debt alone, but the banks just offer them more cards or higher limits, getting them further into debt. I wonder if any of these people have had their cards withdrawn?

Saucepot wrote:

In my experience, todays pauper is often tomorrows wealthy man. I thought the reason banks bent over backwards for students was the assumption that they'd be good future customers. Degrees and what have you ment good employment prospects and a future of buying financial products.

I study law and plan to qualify as a solicitor if everything works out, so I am surprised that NatWest aren't concerned about keeping me as a customer.

From my experience, some banks are very keen to sign students up for things, and some aren't. I've also had a student account with Ulster Bank in the past, which is also part of the RBS group, and they do not offer the best deals for students either. Maybe it is just RBS group's policy?

I think I will change banks!

virgin_moneysaver

"On the other hand, as the Panorama programme showed, there are people who owe tens of thousands of pounds in credit card debt alone, but the banks just offer them more cards or higher limits, getting them further into debt."

As you said they're 'offered' cards, they don't have to take them up, they sign on the dotted line so must take some responsibility for the debt they get into. The problem is that even though Natwest is owned by RBS, & RBS do the finance for Tesco, Mint etc, they are all separate companies & under the Data Protection Act they cannot divulge information to the other companies - this is where the law fails both the consumer & the finance industry - not having seen the programme I can't comment on the cases highlighted & whilst I do have some sympathy with the people who find themselves in debt, nobody can force them to sign. These programmes are often a bit one-sided as the finance industry wouldn't be allowed to comment on a any customers accounts because of the afore-mentioned DPA.

As for your card being withdrawn - I assume the FI has been made to tighten up because of the appalling debt figures in this country & now there are going to be people disgruntled because they won't get a particular card or account as criteria will be raised - the Banks et all can't win, they are damnned if they do & damned if they don't - if they give the cards they are slated for allowing customers to get into debt, & if they turn down the application they are wrong in doing so - I don't know why your card was withdrawn & you should have been given a clearer explanation, try writing to the Bank concerned as a complaint as they must reply in writing & it will be from someone a bit higher up than a basic officer over the telephone, lay it on thick about your future prospects etc & the least you will get is an apology, & the best maybe a new card - GOOD LUCK!!

Gooding

I also had my card taken off me - the ATM swallowed it! I had to ring up and say I'd lost it before I was told my card was withdrawn. Apparently a letter had been sent out to explain this, though I never received it.

I really don't like NatWest, and will probably change when I am able to pay back my student overdraft.

manicdays

Yeah, there is a lot going on with 'students'.

A lot now have to have a monthly dd for the minumum amount, if they still have the card. I do no really know the real reason why, tbh...

Lisa