Barclaycard refused my application???

ALIBOBSY

Odd one this, had been using some of the sub prime cards to rebuild my credit over the last few years and finally got a prime card HSBC last year.

Decided to see if I could get another prime card as a backup and came up with a reasonable chance of a barclaycard so banged an application in. Not declined nor accepted but refferred.

Got a letter to say they can't accept my application. It says they have cancelled the application and it won't affect my credit rating?

It states that this is either because I am an existing customer, or I may have had an old card in the past where I broke the terms and conditions.

I am not a current customer and have no accounts listed on my credit file either open or closed.

I did have a card in the late nineties early noughties which did default when we had some financial issues, but as far as I am aware any cards we had went to debt collectors which ended up being paid off or settled years ago.

I did do a PPI claim which took about 5 years through the FOS to finally be settled about 2 years ago with an average settled amount as Barclaycard said they had no records that far back.

Is this because of the PPI claim, am I blacklisted from Barclays forever? Not too bothered but interested to know.

At least the hard search has been cancelled, just a bit of an odd thing I have never heard of before.

Ali x

[Deleted User]

It's not the PPI claim.

Some lenders do refuse to deal again with customers who didn't pay them back the first time.

ALIBOBSY

Just never heard of it before tbh, had an old card with capital one which defaulted and they let us take a new card now.

TBH the Barclaycard may well have been cleared in full, just via a debt collector not them directly, at most they can have been no more than 1 or 2 hundred. TBH its hard to recall it was so long ago and obviously nothing on the credit files for years.

So basically if you default with Barclays that's it forever?

Ali x

TadleyBaggie

ALIBOBSY wrote: »

So basically if you default with Barclays that's it forever?

Possibly. American Express have also a reputation of refusing applications to individuals who have defaulted in the past.

[Deleted User]

It's understandable. Credit all about assessing and forecasting risk.

Not paying back debts is a good indicator of someone who is not likely to pay back debts.

MallyGirl

ALIBOBSY wrote: »

TBH the Barclaycard may well have been cleared in full, just via a debt collector not them directly, at most they can have been no more than 1 or 2 hundred. TBH its hard to recall it was so long ago and obviously nothing on the credit files for years.

if BCD sold the debt on it would be for a fraction of the true outstanding amount. Some banks have long memories.

ALIBOBSY

Deleted_User wrote: »

It's understandable. Credit all about assessing and forecasting risk.

Not paying back debts is a good indicator of whether someone is likely to pay back debts.

TBF having issues 10 years ago is hardly a good indicator of anything related to now. 10 years ago we had a 2k overdraft, now we have zero becuase we paid it off over several years. Situations change sometimes not through choice or design.

Most banks seem to accept you can have problems then situations can and do change and improve. If they all used the above criteria a vast number of people would be unable to get credit again ever.

If it was say 4-5 years ago I could see absolutely why they wouldn't even consider it, but the original defaults were probably 12 or 13 years ago (maybe more) and I believe what was left was only a low amount which went to debt collectors who we paid. I have a vague memory of having offers to settle some accounts with discounts, but can't recall which ones it was. By that time of settlement Barclaycard would have sold the debt on and written it off against their taxes. So for the sake of say £100 13 years ago Barclays will never accept another application from me?

ali x

GingerBob_3

TadleyBaggie wrote: »

Possibly. American Express have also a reputation of refusing applications to individuals who have defaulted in the past.

It's an interesting one. Taken to extremes, you could default at age 18, and then apply for a card 60 years later and it seems the chumps at AMEX and Barclaycard will reject you. I suspect their keeping personal financial records for such a length of time may be in breach of DP regulations, but then, it begs the question, what is a reasonable length of time to keep such records? OP, you could approach the ICO on the matter. They can be unhelpful in these matters, but it may be worth a punt.

[Deleted User]

If that's their policy, yes.

Their money, their choice.

ALIBOBSY

MallyGirl wrote: »

if BCD sold the debt on it would be for a fraction of the true outstanding amount. Some banks have long memories.

Well they also write off the debt against taxes so make some back that way as well, but I understand what you are saying. Just never heard of a bank effectively blacklisting you forever, or is there a time limit? Are any other banks/financial institutions of the same stance?

Ali x

ALIBOBSY

Hmm well its an interesting one and I suspect means some banks are cutting off their nose to spite their face.

Still at least they rejected the application to avoid it affecting my credit file and gave me a reason lol.

Will avoid them in the future, their loss

Ali x