Why are Sainsburys closing my credit card?

Mrs_Miggins_2

Hi - I'm wondering if this has happened to anyone else - couldn't find anything like it on a search...

A couple of weeks ago Sainsburys bank wrote to me saying:
"as you have not used you sainsbury's bank credit card for some time, we have reduced your limit to £100 and will close your account in 30 days from the date of this letter. Once closed, you will not be able to reopen this account."

I took out the card in Jan 05, my last purchases were in Mar 08, and I finally managed to clear the balance in Nov 09.
Why have they done this? Are they allowed to do this? The letter says it is within their current terms and conditions. This is a real pain - I'm going to Europe soon and was planning to use my card for the hotel / backup etc.

Thanks for your thoughts - haven't posted for years, but I'm an avid lurker!

fozmcfc

In short yes they can.

It isn't just Sainsburys, I've had it with Natwest and I have read others on here, basically having cards closed down by various companies/banks.

They probably see your account as dormant, particularly as it is 2 years since you used the card.

You could try ringing them up and telling them you intend to use the card, so would they up the limit and not close down the card, but they could say no.

If you have time why not just apply for another credit card, your own bank first if you think you might not be able to get one easy, as they will know your finances.

If you have a poor credit rating, then you would need to try Vanquis or Capital One. These 2 cards, may have a high rate of interest, but they will offer you some protection that you get as standard with credit cards.

mjm3346

Sainsburys was one of those closed here

https://forums.moneysavingexpert.com/discussion/2420339

Mrs_Miggins_2

Thanks - knew it couldn't have just been me - just inept at searching. I'm irritated because I have savings accounts with them that I have been paying into regularly - and it just seemed so pro-active. Still, I'll be transferring my savings, and I think I'll now go and claim back the few late payment fees that I managed to get when it was first opened :-)

fozmcfc

Only thing is don't cut your nose off to spite your face as they say. If the saving account you have with Sainsburys is the best you'll get, it isn't worth closing it down, because you are annoyed with them.

If not then use it as a bagaining tool against them and they may give in and allow you to keep the card, if they feel they will be losing money by losing your savings account.

Mrs_Miggins_2

Fair point, but my savings are meagre, so any interest is fairly negligible - I just found it handy for portioning out my money - like little online piggybanks - nothing I can't do myself with a spreadsheet and a bit of discipline! I haven't closed the savings accounts yet - just transferred most of the money.
You're right, and I won't do anything rash.:)