Barclaycard issues

xkpa

Hi there. So on 1st of July I received an email from Barclaycard that my application was approved for Barclaycard Initial Visa credit card with £400 limit. I was very happy because I was able to improve my credit score. Bun on 2nd of July I received a message in my Barclaycard account that my card is cancelled :shocked: with a telephone number to contact customer services about this issue.

When I contacted them, the lady said that after the initial credit checks, sometimes there are secondary security checks which I didn't met. She said that I can apply for the card again after 6 months and she offered me £50 compensation for a gesture of good will. Then she asked me if I plan to contact the Financial Ombudsman about this case, I said no.

What concerns me here is that I cannot find such "secondary security checks" in their T&C. I thought that if I pass the regular credit check and I am approved I will be fine.

So is there is such thing as "secondary security check" after approval? Cheers

Tixy

This does sometimes happen with barclaycard in particular.

The T&Cs on the card does allow then to withdraw credit at any time, which effectively is what they have done.

£50 compensation is a new one on me though, not seen anyone saying they have been offered that before.

izools

In my experience Barclaycard give their initial answer based on the results of a credit search with Equifax and secondarily they perform searches with Experian. They don't always search Experian, but if there's anything that they aren't 100% sure about with the data from Equifax they probably schedule a manual review or some such which is done with Experian.

If the data on the applicant's Experian file is different in any way from their Equifax credit file this may then cause them to close an opened account - but if both files are hunky dory the account stays open.

They aren't the only ones - Yorkshire Building Society gave me a DIP on a mortgage based on an Equifax search and the underwriters then did a manual review with Experian which raised further questions - but thankfully I managed to satisfy their concerns

But I agree, if they're going to check both Experian and Equifax they should do both at point of application and go from there. RBS Group and Capital One do.

richard734

Izools is correct, I think we even had a massive conversation about this a couple of years ago
When you pass initial application, it is then double checked by Barclaycard internal systems. If anything is flagged at 2nd level checks, a second check is done with Equifax. This can be triggered by a number of things, from a name match, postcode match etc to Barclays internal information. So if your postcode is a block of flats with a high rate of card deliveries reported as going missing you will trigger a 2nd level check, or if 'your' name is on any of the Anti-Money Laundering or terrorist watch lists etc.
If they cant be 100% that you are who you say you are, or that your record meets their standards, they will cancel the account.

I know Barclaycards methods seem a little clunky, but it is all around Know Your Customer rules, where the banks have to be A) Not lending to someone they shouldn't be, Lending responsibly C) making efforts to reduce fraud.

There is nothing you can do about the bigger triggers (as above) but it is worth checking to see what both your credit reports say about you, in case it was a personal entry on either of them that triggered the rejection.

You-kip

izools wrote: »

In my experience Barclaycard give their initial answer based on the results of a credit search with Equifax and secondarily they perform searches with Experian. They don't always search Experian, but if there's anything that they aren't 100% sure about with the data from Equifax they probably schedule a manual review or some such which is done with Experian.

If the data on the applicant's Experian file is different in any way from their Equifax credit file this may then cause them to close an opened account - but if both files are hunky dory the account stays open.

They aren't the only ones - Yorkshire Building Society gave me a DIP on a mortgage based on an Equifax search and the underwriters then did a manual review with Experian which raised further questions - but thankfully I managed to satisfy their concerns

But I agree, if they're going to check both Experian and Equifax they should do both at point of application and go from there. RBS Group and Capital One do.

Spot on reply from Mr izools as they done exactly the same with my missis BC where they searched her Equifax & Experian which came as a shock as Never thought they searched Experian.

xkpa

After the closure of my Barclaycard account I have noticed that this credit card is on my credit report with one green dot. The only 1 red thing in my Equifax credit report is that I have 7 credit searches for the last month, so I need to wait 6 month before I reapply again. What do you think, can this be helpful for me when I will plan to reapply after 6 months? Thanks