Barclaycard end cash advances

Robert_Sterling

Take your custom elsewhere.

MediaFrenzy

I received my Barclaycard statement today and it stated that they had introduced a Cash Credit limit set at 50% of my total credit limit; this is part of their responsible lending process. It can surely only be a good thing that cash withdrawls on CCs are limited given the fees charged and high interest rates.

Watson

MediaFrenzy wrote:

It can surely only be a good thing that cash withdrawals on CCs are limited given the fees charged and high interest rates.

I don't understand the logic (although I freely admit that I might well be influenced by the fact that my withdrawal ability has been "limited" to zero). Yes, the interest and handling charges are high, but it's surely up to the customer to decide if they're too high. If Barclaycard think I'm a bad risk, why are they still willing to let me spend £1500 of their money on consumer goods, with absolutely no guarantee that I'll ever pay it back?

Watson

thesaint

In an ideal world customers would decide that charges are too high and not pay them, but in reality most people will take whatever is thrown at them.

Not having credit will focus minds on the underlying problems of why people are withdrawing cash with a credit card which isn't a bad thing.


The banks are protecting their interests under the guise of being responsible.

YorkshireBoy

Watson wrote:

If Barclaycard think I'm a bad risk, why are they still willing to let me spend £1500 of their money on consumer goods, with absolutely no guarantee that I'll ever pay it back?

Because analysis of their bad debt write-off has shown that customers who regularly draw cash very often then default on their account repayments.

The setting of higher rates/withdrawing of the facility is simply Barclaycard pricing for risk.

The higher interest rates, and cash withdrawal fees, enable them to a) dissuade customers who might otherwise avail of the facility, and b) to maximise their income, and therefore minimise bad debt, before those customers 'go under'.

Rafter

Sounds sensible.

I'm sure if you are going abroad and want to have the card available for emergency cash withdrawls they will let you.

However, if you have had the card for a few years and suddenly start making big cash withdrawls, particularly overseas, then it is either a clear sign your card has been cloned or a fraud is being committed, or that you are in financial difficultly and trying to get money you have no intention of ever repaying.

Under both circumstances Barclaycard seem to be doing a sensible thing both to protect themselves and to keep costs down for other customers.

R.

Watson

Actually, I've had the card for one year, used it once to make a single purchase which was then paid off in full, and haven't used it again since.

I think they just don't like me.

Watson

King_Of_Fools

Watson wrote:

Actually, I've had the card for one year, used it once to make a single purchase which was then paid off in full, and haven't used it again since.

I think they just don't like me.

It has been previously posted that Barclaycard are applying this to most of their accounts - I would not take it personally!

If it were me, I would be thanking Barclaycard from removing a possibility of doing something that would prove extremely costly.

Watson

King_Of_Fools wrote:

If it were me, I would be thanking Barclaycard from removing a possibility of doing something that would prove extremely costly.

I just can't see it in that light. They haven't rescued me from temptation, they've taken away a facility: one, moreover, which was one of the reasons why I applied for the card in the first place.

I don't need to be saved from myself, nor do I care to be regarded as someone who has to have his decisions made for him.

Watson

thesaint

Vote with your feet.

Then in 6 months you may have to deal with the cause of why you need to withdraw cash with your credit card.