Nationwide CC Cancelled for no reason

Skoorb

launton wrote: »

Hi all.

Last week I got a letter from Nationwide credit card services informing me that they were cancelling my credit card with immediate effect (one week before renewal I might add).

The letter was a general printout but it's wording is accusatory and quite curt - alsmost nasty.

There is something else to consider in this post, that the card is issued by Nationwide.

Nationwide are changing the way they operate somewhat, they are now looking for customers to hold multiple products with them; they are not too keen on selling best buys to people who don't also have their current account.

I'm guessing that you only held their credit card, and don't also have an active (over £750 a month deposited) FlexAccount with them, or a mortgage etc. An idea of some of the stuff that they're only selling to current customers is at http://www.nationwide.co.uk/current_account/latest_deals/current_account_offers_and_deals.htm.

I also agree with everyone else that not making them any profit through interest by paying off in full each month probably hasn't helped.

If you really want to stay with Nationwide for their current credit card offering, you're probably going to have to switch your Current Account to them first, otherwise you will have difficulty accessing their best products. To be fair, they do have generally very good customer service ratings.


This is something that's likely to happen to more people in the future.


Other points

You mentioned that you paid quite a lot to access your credit file with just one of the three Credit Reference Agencies. You may wish to take a look at http://www.moneysavingexpert.com/loans/credit-rating-credit-score to see how to reduce this cost or get it for free in the future.

If you are after a new card, take a look at http://www.moneysavingexpert.com/travel/cheap-travel-money for the official MSE guide on the best cards for foreign transactions, or http://www.moneysavingexpert.com/cards/?tab=4 for cashback and other credit cards.

I hope that helps!

zagfles

Skoorb wrote: »

I also agree with everyone else that not making them any profit through interest by paying off in full each month probably hasn't helped.

Agree with most of your points but not this one, CC companies don't mind people who pay in full, after all they all offer them the perk of the interest free period if they do so. They wouldn't offer this if they didn't want full-payers. The majority of CC holders pay in full. They still make profits through the merchant fees.

real1314

launton wrote: »

Thanks for all the replies

Quote: Look at it this way, if you were running a business, and you had to maintain accounts (at a cost to you) where that particular customer wasn't making you any money, would you want to keep that customer ?

I did run a clothing/craft business as Manager for seven years, and if we treated our customers like that we wouldn't have any. That's why I'm leaving them

If all your customers did not make you a profit, and in fact incurred a running cost, but you did everything to retain them, you wouldn't have a business.

You don't seem to have grasped the point that a customer that does not generate a profit for the business is not a customer that the business wants to retain. :cool:

launton

I grasp your point perfectly... it's a two way thing. It's one serving the other. You get the convenience, and they get the profit.

Perhaps my initial post was a little ranty - more borne out of the frustration of having a lot of money travel though my flexaccount in the last 28 years incurring profits for Nationwide. I used my CC plenty and paid it off in full each month. Obviously they're streamlining their customers who do not achieve a specific percentage profit through debt.

Our customers increased profits by using our service via repeat visits from customer satisfaction. I'm looking at it all from that and a managers point of view I guess.

Thanks again

launton

I'm guessing that you only held their credit card, and don't also have an active (over £750 a month deposited) FlexAccount with them, or a mortgage etc.

I do bank with them, and have done for 28 years. Around 900+ a month goes in the account. Not a lot I know but I left work in 2009 after being diagnosed with muscular dystrophy.


Thanks for the extra info as well

System

I got rid of my Nationwide CC quite a while ago. At the time I had a largeish credit limit (around £6k) and used it for around £1k of purchases a month that were paid off in full.

I was about to put a large transaction on the card one month when I received a letter saying that they were reducing my credit limit to £500. I phoned up to ask when it would be enforced as I was due to use the card and was told it had already happened before the letter was sent. I was also informed that the decision was made due to something adverse on my credit file.

I got another interest free CC for the large purchase, and closed down the Nationwide CC. Checked my credit files as well and there was nothing adverse on there in any way that I could see either.

At the time this happened I had 2 flex accounts with them and my mortgage. I moved all these products as soon as I was able to as well.

I know that banks decide who they do business with, and I probably wasn't making them any money as I paid off the CC in full and was making overpayments on my mortgage, but their decisions don't seem to be based on anything specific.

missile

launton wrote: »

... .

Is this common?

Sorry for sounding a little angry, it's just we're always being told to stay in the black and be 'good'

FYI: My wife and I both have Nationwide current accounts and credit cards. we rarely use the current accounts and have not used CCs for several years, since they reduced the cash back to 0.25%.
I would be a little angry too and would take my business elsewhere.
I was similarly annoyed when Barclaycard slashed my credit limit from to £250, so I stopped using it. Then they put it up to £1500, but I still never use it.

I have given up trying to understand why Nationwide et al treat their customers like dog turd

DVardysShadow

launton wrote: »

I do bank with them, and have done for 28 years. Around 900+ a month goes in the account. Not a lot I know but I left work in 2009 after being diagnosed with muscular dystrophy.


Thanks for the extra info as well

I think possibly the issue is not enough money crossing your current account. It looks significant to me that the amount into your current account is less that £1000/month.

I would line up another current account and talk to the current account people - making them understand that without a card you will move your business elsewhere. If this does not produce a card, I would move. And rubbish them at every opportunity,

meer53

Moving banks doesn't have any effect on the one you're leaving. It's like taking your bat and ball home. If you're not making them any money them thats exactly what they're wanting you to do. So you're playing into their hands really.

Banking is changing these days, they don't take the risks they used to, i don't know why people are surprised by this, they've had their fingers burnt and are all starting to make changes to their customer profiles to minimise their losses.

As long as you aren't paying for a current account and you're happy with any savings interest rates, why change ?

Launton, i don't think you did get the point really, most banks have customers who don't generate any profit at all, why would they want to keep them ?

Better_Off_1983

Hi,

I have an Aqua card and because I have not used the credit card for 2 years and I am paying more than the minumum.

They wrote to me saying that they wanted to increase my APR. I said keep them at the lower rate, they then said they would have to close the account and make it a repayment account only.

Hope that helps.