Why credit companies aren't prepared to help customers?

cooganv3

So, there I am, got a little debt as most, and I wanted to manage my money better as I'm getting to the point where I might have to contact all my creditors to arrange lower payments.

So I have a credit card with Virgin / MBNA and see that they are offering 0% on balance transfers and very low interest.

So I apply, and get turned down. Well, its the same old story isn't it. Why help the customer when they ask, its surely better to deny them and then receive less money.

Is it me, or is this country simply out to screw itself?

Esoog

They're out to make money, simples.

[Deleted User]

Yes - I read somewhere that they're a profit making organisation.

dmg24

cooganv3 wrote: »

So, there I am, got a little debt as most, and I wanted to manage my money better as I'm getting to the point where I might have to contact all my creditors to arrange lower payments.

So I have a credit card with Virgin / MBNA and see that they are offering 0% on balance transfers and very low interest.

So I apply, and get turned down. Well, its the same old story isn't it. Why help the customer when they ask, its surely better to deny them and then receive less money.

Is it me, or is this country simply out to screw itself?

You are in debt, and you do not understand why you are not allowed more credit which would enable you to get into more debt?

dmg24

Deleted_User wrote: »

Yes - I read somewhere that they're a profit making organisation.

How dare they try to make a profit? :eek:

intranicity

and from their side.....

Here we go again, customers borrowing money, then can't afford to pay it back.....

Good on you though for wanting to get on top of your money, but if you only have "a little debt" why are you needing to arrange lower payments with your creditors? Or have you actually got quiet a large debt and your income isn't enough to keep on top of it, in which case, I'm sure if you look from their side why they might not want to lend you more?

briankelleher

I'm reading this as "I have a card with Virgin/MBNA that I can't afford to pay, so I applied for a new card from Virgin/MBNA at 0% interest, and they turned me down".

Am I right? In which case, why would they give you an introductory offer (aka an offer to attract new customers), when you already owe them money? I wasn't even aware virgin would give you more than one card at once.

dmg24

Patricia_Crete wrote: »

I owe on my NatWest card, which I have held for 10 years now around 7,500. I have never ever missed a payment and always pay in a little more than the minimum amount monthly. I received a letter last month informing me that the interest rate was going up from 18 to 22%. I do not live in the UK, but as I was visiting for a week I took the opportunity to visit a branch and ask the reason for the extra 4%. I was allowed to use a branch phone to speak with NatWest credit card. The assistant asked the reason for the call and when I told him he said maybe a Financial Adviser could assist me, but when I said that I lived abroad and my basic salary was only 700 Euro per month, he just shrugged his shoulders and said Oh Well! I then continued and was not spoken to when I left the branch.

On speaking with NatWest credit cards, firstly I asked why the interest rate increase and was told it was probably an increase in the Bank Rate. I said that there had not been any increase lately so I was left on hold for 10 minutes while the girl asked somebody and then returned unable to actually give me a reason. I then told her to cancel the card, as basically the tone of the letter was, either accept this increase or close the account and pay the balance of at the old rate. We dont want you any more as your balance is now getting too scary for us!

On returning to Greece I received a telephone call to say I had missed my payment on the account. I then explained the position and said that as Personal Loans could be offered at around 9% I would like one of those so that I could just pay a set amount per month and finish the balance in say 5 years. The girl said that this could not be done, so I then asked for the interst to be frozen and a financial arrangement to be made. She said she could not do this and asked for the amount due to be paid. I then said that if I just keep continuing to pay the interest monthly, I will never clear the amount and it would be taken out of my death estate. I want to clear the amount in full, but not at double the going interest rate. She said about a Personal Loan, so I said I would not be able to get one as I have no credit history now in the UK and have not held an electoral role for 5 years plus. Attitude again was Oh Well! I then actually gave a new address in Crete to be contacted on and even though the girl had spent over half an hour speaking with me, actually asked me to call into a branch (would she be paying my air ticket again!) and I needed the card in front of me. As I said I had cut this up after cancelling it last week, she was stumbled and clicked off for advise only to say again about the payment to be made blah blah. I actually said to her I am trying to sort this out and we are just talking in circles. I am not prepared to pay the higher rate of interest and then once again she asked for my card details - presumably for the 3 digit code on the back. How many times did I have to repeat myself! I asked for a financial statement of income/outgoings to be sent to me and she informed my credit history would be damaged, to which I replied I dont care as I live abroad and nobody will give me loans in the UK anyway. Their option - either arrange a lower interest rate so I can the balance off, or I will just let it go with a CCJ - what would she like to do? Same repetitive answers and conclusion, so thanks a lot NatWest for being so helpful to a customer of 30 years.

While in the UK I opened a current account with another company I have products with, who are not linked to NatWest, so I will now close my current account with NatWest so money cannot be filched out.

Why do you expect the bank to help you given your attitude towards them? You owe them money, you are not in a position to issue ultimatums!

KingElvis

Sounds like you need to calm down and work out a way from you pickle.

BTW, 7.5k on a credit card is not "a little debt"

Tixy

Patricia_Crete wrote: »

but not at double the going interest rate.

22% is not double the going interest rate though - it is the going interest rate from natwest for someone in exactly your position. Which is why its the rate they gave you.

All you have done in your calls is confirm to them that you are probably even higher risk than they realised.

You could of course just have opted out of the interest rate increase - which would have been a lot less time and effort and meant you were still paying the 18% interest rate you have presumably been happy with up to this point.

danothy

cooganv3 wrote: »

So, there I am, got a little debt as most, and I wanted to manage my money better as I'm getting to the point where I might have to contact all my creditors to arrange lower payments.

So I have a credit card with Virgin / MBNA and see that they are offering 0% on balance transfers and very low interest.

So I apply, and get turned down. Well, its the same old story isn't it. Why help the customer when they ask, its surely better to deny them and then receive less money.

Is it me, or is this country simply out to screw itself?

Thing is if they transferred your debt to a 0% card they would have received less money from you as you wouldn't be paying any interest on the debt, so while they haven't helped you they aren't screwing themselves, they are in fact protecting their own interests.

If you're having trouble meeting the minimum payments then a visit to the Debt-Free Wannabe board might be useful as there's many people there who can help you with balancing your income, outgoings and general debt management.