MBNA Scam....

thecasementkid

I'm in the fortunate position, after problems in the past, of having a very decent credit record.

A couple of weeks ago, I applied for a Virgin credit card, the longish interest free period caught my eye.
I've a Vanquis credit card (yes I know) which I took out in the not-so good times and after accepting almost monthly credit limit increases from them due to being an "impeccable" customer, they decided to hike the interest rate from an eye watering 39% to an atomic sized 49% as my profile suggested I was a risk.....! I said no thanks and chose to close and pay off the account.
So I thought, open a Virgin account, swap the balance to a more respectable 18.9% interest free for a year or so. They turned me down for being "overcommitted" even though I didn't want to increase my commitments, simply manage them better.

Imagine my surprise yesterday to get an MBNA email introducing the Vanquis Bank credit card in association with MBNA.

"You recently applied for a Virgin Credit Card. We would like to introduce Vanquis Bank to you, an alternative credit card issuer with whom we have a relationship" was their opening speal.

So I'm not good enough for them, but they don't mind me "overcommitting" myself as long as they earn something out of me!
I feel like swearing....:mad:

intranicity

lol, you're lucky mate, similar position re Vanquis, my rate went to 59%...

Since that I now have a Barclaycard and a Halifax Clarity Reward card, think the better your credit becomes, the higher the rates go with Vanquis!

exel1966

thecasementkid wrote: »

I'm in the fortunate position, after problems in the past, of having a very decent credit record.

A couple of weeks ago, I applied for a Virgin credit card, the longish interest free period caught my eye.
I've a Vanquis credit card (yes I know) which I took out in the not-so good times and after accepting almost monthly credit limit increases from them due to being an "impeccable" customer, they decided to hike the interest rate from an eye watering 39% to an atomic sized 49% as my profile suggested I was a risk.....! I said no thanks and chose to close and pay off the account.
So I thought, open a Virgin account, swap the balance to a more respectable 18.9% interest free for a year or so. They turned me down for being "overcommitted" even though I didn't want to increase my commitments, simply manage them better.

Imagine my surprise yesterday to get an MBNA email introducing the Vanquis Bank credit card in association with MBNA.

"You recently applied for a Virgin Credit Card. We would like to introduce Vanquis Bank to you, an alternative credit card issuer with whom we have a relationship" was their opening speal.

So I'm not good enough for them, but they don't mind me "overcommitting" myself as long as they earn something out of me!
I feel like swearing....:mad:

Your credit score is obviously not good enough for a mainstream card with MBNA so they recommended Vanquis.

Now where's the scam ?

thecasementkid

exel1966 wrote: »

Your credit score is obviously not good enough for a mainstream card with MBNA so they recommended Vanquis.

Now where's the scam ?

Because they are not prepared to accept me as I'm "overcommitted" but are happy to increase my commitments and earn a commission on the back of someone else.

I've no defaults, CCJ's and have never missed or late on a single payment in the last 6 years, hence my feelings. I'm not bothered by the rejection, simply annoyed they try and hook you up with someone as unscrupulous as Vanquis in their name. If you're overcommitted, you're overcommitted with anyone.

exel1966

Card companies do not usually give specific reasons for rejection so to hear that they've stated you're 'overcommitted' is surprising. Are you positive about that or is it that they've given you this impression ?

The e-mail you received is probably automated and sent to many rejected applicants. It still doesn't make it a scam !

Tixy

They don't know you have a credit card with vanquis at the moment. And they don't know why you were applying for a credit card.

They might think that a £250 limit on a vanquis credit card would be manageable and useful to you (eg if you wanted a card for section 75 protection or something).

MBNA might think you could manage a £250 limit from themselves but just not a new card with an extra £2k or so of credit - but they don't give limits out as low as £250 whereas vanquis do.

Tiddlywinks

"Scam" - if I had a pound for every time it was used (or should that be over-used)..........

thecasementkid

exel1966 wrote: »

Card companies do not usually give specific reasons for rejection so to hear that they've stated you're 'overcommitted' is surprising. Are you positive about that or is it that they've given you this impression ?

The e-mail you received is probably automated and sent to many rejected applicants. It still doesn't make it a scam !

No the letter I was sent actually states due to being overcommitted (see below).
I was surprised too and they recommended I get my report from Call Credit.

.
Virgin Credit Card
PO Box 1005
Chester Business Park
Chester
CH4 9FB

MR xxxx x xxxx
41 xxxxxx xxxx
xxxxxxxx
ESSEX
xxxxxx

July 20th 2011

Dear Mr xxxx

Re: Your Virgin Credit Card application reference: xxxxxxxxxx

Thanks for applying for a Virgin Credit Card.

We're sorry but having looked at all the information you've given us and checked your details with a credit reference agency, we're not able to offer you a credit card at this time.

This is because of the amount of credit you already have outstanding.

If you'd like to take a look at your credit file, please contact the Callcredit Reference Agency:
Internet address https://www.callcreditcheck.com
Telephone number 0870 060 1414

Thanks again for your application.
Here at Virgin Money we offer a wide range of financial products so if there's anything else you're interested in, just visit https://www.virginmoney.com to find out more.

Yours sincerely
Patricia Brassil Poole
Head of Credit

To find out more about our complaints process, please visit https://www.mbna.co.uk/contact/complaints

I think the whole thing stinks....:eek:

daveboy

I think it's quite funny how someone comes on here to embarrass themselves.

It happens numerous times a day across all of the different forums.

I always see things like this, as a tax on idiots. Those that don't fully understand how lending works deserve to be hit with a high APR.

The_pc_tech

If you've recently closed the Vanquis account could it be that they've seen it along with the open and close dates and made the decision based on that?

lvm

I'm not that brilliantly clued up with lending criteria however I assume that your Vanquis limit will be quite low.

Could it be that you are using quite a high % of this credit? E.g you have a £1000 limit with a £950 balance. Whoever you applied to might think you are nearly running out of credit and are desperate for more...

As for wanting to transfer a balance from Vanquis...although some people may have unfortunate circumstances and can't clear the balance off in full, you say you now have a clean credit history. The fact you can't clear off a credit card with such a high APR might suggest otherwise. People recommend these cards are used only to rebuild or create a credit history and are paid off in full to avoid the extortionate charges...