Lloyds refuses to give me a contactless debit card...

shackleton_2

So, to cut a long story short, this is due (presumably) to low credit score.

Long story:
Came to the UK about 14 months ago., for work reasons, so I already had a job when I landed. Opened my account on arrival (Club Lloyds account).
My salary has been paid into that account ever since.

Initially I wasn't given a contact less card, didn't think much of it. When I inquired them, they told me it would be available once I was with them for a number of months and they saw how I was a customer or whatever.

Anyway, over a year later, they tell me it's because "the system" doesnt given them the option, presumably due to low credit score. They explained to me that because contactless transactions do not check against funds, there is a risk of overdraft. In my case it would take a few hundred transactions capped at 30 quid for this to happen, but they didnt seem to care.

My credit score is low because i have no history. I've done all I could possibly do (register as a voter, etc). The only "negative" things according my report are that I haven't been in the registry for 3 years, or that I have recent credit searches. One of the broadband (9 months ago?) and one for my mobile contract a few months ago.

thinking applying to a credit card would solve the problem and help me build a credit history, I applied to the basic barclayscard to build credit and was rejected too.

So, I have no debt, I keep a good amount of money in my checkings/savings account, etc. All I want is a contact less card as over 90% of my transactions are less than 10 quid and it's becoming an inconvenience.

I am now realising that I should have said yes when they offered me overdraft when I opened my account.

I know that other banks do offer contactless to all of their customers by default. Is this an option? Should I just switch? The interest I earn on the club lloyds is easily matched by santander 1,2,3 for instance.

However, I can also see on my credit report how long I've been with my bank, so if this sets me back, I'm back to square one...

KJSmith

I assume you don't pay a monthly fee for your Club Lloyds account and haven't used an unplanned overdraft recently.

Go to a Lloyds branch and ask if they could check with their lending team to authorise an upgrade to a contactless card.

shackleton_2

The monthly fee for the club lloyds is waived, so I pay it but it gets refunded. Haven't used any overdraft at all.

I was told by a manager that there was nothing they could do, that was "the system", and "the bank policy" and was a product I could not be offered at the moment.

KJSmith

It would depend on your individual circumstances, but if according to the bank's policy you're not automatically eligible for a contactless debit card, there is still potential for one to be approved if the member of staff refers to their lending team.

grumbler

shackleton wrote: »

... they tell me it's because "the system" doesnt given them the option, presumably due to low credit score. They explained to me that because contactless transactions do not check against funds, there is a risk of overdraft. In my case it would take a few hundred transactions capped at 30 quid for this to happen, but they didnt seem to care.

Unfortunately, nowadays computers make many decisions and if they say NO, then that's it. It doesn't matter whether people 'care' or not.
And your current account balance doesn't mean anything as it can easily come and go.

KJSmith wrote: »

Go to a Lloyds branch and ask if they could check with their lending team to authorise an upgrade to a contactless card.

I think this will be waste of time as branches' staff are powerless.

jonesMUFCforever

The only way the OP wil get a contactless card is if his internal credit score improves sufficently for them to be able to lend to him eg overdraft credit card or loan.
Until that happens (he has said himself he has a low credit score) he will not get a contactless card - end of.

If he is not happy with this he must look elsewhere to bank.

colsten

shackleton wrote: »

Should I just switch? The interest I earn on the club lloyds is easily matched by santander 1,2,3 for instance.

However, I can also see on my credit report how long I've been with my bank, so if this sets me back, I'm back to square one...

You don't need to switch. You can just apply for another current account elsewhere, and transfer money as appropriate from your Club Lloyds to that other account.

With the new basic accounts, you shouldn't need to have any worry about being turned down. Nationwide appear to be offering contactless with their FlexBasic. http://www.nationwide.co.uk/products/current-accounts/flexbasic/features-and-benefits

20aday

colsten wrote: »

You don't need to switch. You can just apply for another current account elsewhere, and transfer money as appropriate from your Club Lloyds to that other account.

With the new basic accounts, you shouldn't need to have any worry about being turned down. Nationwide appear to be offering contactless with their FlexBasic. http://www.nationwide.co.uk/products/current-accounts/flexbasic/features-and-benefits

Nationwide do indeed offer Contactless Visa Debit cards with their FlexBasic account; plus they offer to upgrade the account (if maintained well) within six months usually.

KJSmith

grumbler wrote: »

Unfortunately, nowadays computers make many decisions and if they say NO, then that's it. It doesn't matter whether people 'care' or not.
And your current account balance doesn't mean anything as it can easily come and go.

I think this will be waste of time as branches' staff are powerless.

The computer decision isn't always right. The bank acknowledges this and has a process in place whereby if the customer meets certain conditions and somebody in a branch is willing to support the case then they would be able to refer to their lending team to authorise a contactless card.

jonesMUFCforever wrote: »

The only way the OP wil get a contactless card is if his internal credit score improves sufficently for them to be able to lend to him eg overdraft credit card or loan.
Until that happens (he has said himself he has a low credit score) he will not get a contactless card - end of.

If he is not happy with this he must look elsewhere to bank.

As mentioned above, where the customer is not automatically eligible for a contactless card, this automated decision can (very easily) be overturned by their lending team.

Thrugelmir

grumbler wrote: »

Unfortunately, nowadays computers make many decisions and if they say NO, then that's it. It doesn't matter whether people 'care' or not.

That's the power of technology. The risk management team set the banks policy.

grumbler

KJSmith wrote: »

The computer decision isn't always right. The bank acknowledges this and has a process in place whereby if the customer meets certain conditions and somebody in a branch is willing to support the case then they would be able to refer to their lending team to authorise a contactless card.

How "somebody in a branch" is different from from people on the phone that "didnt seem to care" despite seeing absolutely the same information?

Thrugelmir wrote: »

That's the power of technology. The risk management team set the banks policy.

Yeah, this is much cheaper. Unfortunately, computers can't overcome the 'policy'. The 'team' can, but CBA or is unreachable because it's far too small now to deal with far to many requests if they were routinely allowed.