JaJa credit card unexplained closure of account

Snapper21

I discovered on checking my emails late last night a message from JaJa cheerfully informing me that they were closing my credit card... very sorry they said but it will become inactive on a date two months from now when I expected to be using it while away.  We were with the post office credit card for years. I rang to ask what was going on and encountered a script that involved repeated apologies but no explanation and no willingness to put me through to a line manager as they would not be able to change the decision.    She did offer to raise a complaint so I asked for a reason and compensation for the time etc that it would take me to organise another suitable card. I was also told no reference numbers were given.    My wife tells me that JaJa have an announcement on their website stating that they will not be accepting any new applications.  I wonder what is going on..... 

MorningcoffeeIV

Probably exiting the market.

You won't get compensation for the 5 minutes it takes to open another credit card.

msallen

Compensation ?!?!

CliveOfIndia

Could be any number of reasons, one likely reason as referred to by MorningCoffee.

Additionally, have you been actively using the card?  Most card issuers will close an account if it's not been used for a lengthy period (typically 13 months).

But I wouldn't worry too much about it.  Assuming your credit history is not littered with negative markers, you should have no difficulty in being accepted for another card (ideally one of the "travel" cards if you're likely to want to use it abroad at all).

born_again

They do not have to give a reason.

But if you have not been using the card, that is a reason why they may close it. Unused lines of credit are a bigger fraud risk, as people tend not to check their accounts. As they know they have not been using them.

WillPS

MorningcoffeeIV said:

Probably exiting the market.

Would be a peculiar course of action so soon after acquiring a huge base of customer from Bank of Ireland (Post Office) and then entering in to an affinity arrangement with Asda.

RhondaD

They have only just taken over the Asda credit card as well so it would be an odd strategy to leave the market. I wonder if OP has been regularly using the card? 

kipsterno1

I have also received an email stating, "After reviewing our credit card offering, we've made the difficult decision to discontinue the Jaja credit card that you hold with us." It goes on to explain its in line with the terms and conditions. 

No great loss seeing as I got  the Post Office credit card donkeys years ago which paid £50 cash back for opening it. Between the Post Office and Jaja I haven't paid a penny in interest which might be why they nolonger want me as a customer. 

CliveOfIndia

kipsterno1 said:

I haven't paid a penny in interest which might be why they nolonger want me as a customer. 

This in itself would not usually be a trigger for account closure.  Whilst interest paid by a customer is of course welcome for a lender, credit card issuers receive plenty of income from the fees they charge the retailer every time you use the card.  If you use the card regularly and always pay in full every month, they get a nice steady income stream with none of the costs associated with having to chase (potentially) bad debt.

If you use the card infrequently or only for very small amounts each month, that might give them cause for concern as they're not making much money (indirectly) out of you.  But even that is not a hard-and-fast rule.  It could simply be that they've changed their acceptance criteria/preferred customer profile and you no longer fit their "ideal customer" profile (whatever that may be).

cymruchris

kipsterno1 said:

I have also received an email stating, "After reviewing our credit card offering, we've made the difficult decision to discontinue the Jaja credit card that you hold with us." It goes on to explain its in line with the terms and conditions. 

So it seems they are likely closing all of their JaJa credit cards, and the AA branded one that they took over some time ago. (See below from the AA website)

I do recall they launched with some snazzy marketing ploy that gave the card in limited numbers, encountered quite a few problems, and didn't really grasp the market potential they could have done. In the grand scheme of credit cards JaJa was a bit of a flop.

It'll be interesting to see whether the partnership with Asda continues. Although Asda is a big grocery name, I'm not sure the card has been issued in particularly large numbers.

Hammer_Time

I have also received the cancellation email, I only use it for holidays and foreign currency purchases. I only use it about 6-12 times a year. I have now applied for the Halifax clarity card.