JaJa credit card unexplained closure of account

WillPS

LordWin said:

Received notice of closure of my JaJa credit card yesterday.  Such a shame as I always found it gave good exchange rates when using it abroad which I did regularly.  I also liked the app.  I can't understand why it would take over all the Post Office card customers a few years ago, only to discard them.  Presumably not as profitable as they thought.

Bank of Ireland wanted out. Jaja bought fairly cheap, now with adequate data in their own systems they can see pretty well which customers will make them money (i.e. the ones who carry balances, even occasionally) and are sacking off the rest.

Any lender, particularly a smaller one like Jaja, has a finite amount of credit they can dish out. Even if a customer is revenue neutral there is an opportunity cost to continuing to provision that customer with credit compared to offering a profitable customer the same amount of credit.

Unlike other lenders Jaja don't seem particularly interested in building relationships or even selling their own products directly any more - none are offered on their own website. One assumes they are throwing their eggs in the affinity basket with Asda and maybe others in future.

surreysaver

Finally received my email yesterday.

KittenChops

Just received the email, account will be closed 30th May.

akm2018

Another ex-Post Office customer who never carried a balance here, just today received the email. Statement date is 14th of the month so no obvious connection!

WillPS

Total speculation on my part but I wonder if there is a team of people, possibly in an individual, working their way through the accounts, looking for any 'desirable behaviour' and starting the closure process if they see none.

CliveOfIndia

WillPS said:

Total speculation on my part but I wonder if there is a team of people, possibly in an individual, working their way through the accounts, looking for any 'desirable behaviour' and starting the closure process if they see none.

Highly unlikely.  Even if they were looking to get rid of "undesirable" (whatever that may be) accounts, it would be a very simple matter to run a quick computer algorithm and spit out a list of keepers and a list of those to get shot of.  I really don't think they'd go to the expense of paying a team of people to spend months trawling though every single account

WillPS

CliveOfIndia said:

WillPS said:

Total speculation on my part but I wonder if there is a team of people, possibly in an individual, working their way through the accounts, looking for any 'desirable behaviour' and starting the closure process if they see none.

Highly unlikely.  Even if they were looking to get rid of "undesirable" (whatever that may be) accounts, it would be a very simple matter to run a quick computer algorithm and spit out a list of keepers and a list of those to get shot of.  I really don't think they'd go to the expense of paying a team of people to spend months trawling though every single account

Until we see somebody report that they've left a balance on their card, and their card is being closed, my working assumption is they're getting rid of the customers they make no money from.

An algorithm as you describe would probably create a relatable pattern in terms of closure dates. Unless it's working through them in batches based on surname or postcode or something daft, I think there could well be an manual element.

CliveOfIndia

WillPS said:

CliveOfIndia said:

WillPS said:

Total speculation on my part but I wonder if there is a team of people, possibly in an individual, working their way through the accounts, looking for any 'desirable behaviour' and starting the closure process if they see none.

Highly unlikely.  Even if they were looking to get rid of "undesirable" (whatever that may be) accounts, it would be a very simple matter to run a quick computer algorithm and spit out a list of keepers and a list of those to get shot of.  I really don't think they'd go to the expense of paying a team of people to spend months trawling though every single account

Until we see somebody report that they've left a balance on their card, and their card is being closed, my working assumption is they're getting rid of the customers they make no money from.

Well I can sort of give the opposite view - I have always used all my cards regularly, always (and I do mean always!) repaid in full every month, never paid a penny in interest or charges, and earned some nice reward points along the way.  The only letters I've ever had from any of them is to offer me an increased credit limit.  Make of that what you will.

WillPS said:

CliveOfIndia said:

WillPS said:

Total speculation on my part but I wonder if there is a team of people, possibly in an individual, working their way through the accounts, looking for any 'desirable behaviour' and starting the closure process if they see none.

Highly unlikely.  Even if they were looking to get rid of "undesirable" (whatever that may be) accounts, it would be a very simple matter to run a quick computer algorithm and spit out a list of keepers and a list of those to get shot of.  I really don't think they'd go to the expense of paying a team of people to spend months trawling though every single account

An algorithm as you describe would probably create a relatable pattern in terms of closure dates. Unless it's working through them in batches based on surname or postcode or something daft, I think there could well be an manual element.

Obviously I can't speak for this lender in particular, but certainly in most of the banks I've worked for, computer batch runs for non-time-critical activities very often are split up into smaller batches based on area, age/type of account, customer demographics or whatever.

WillPS

CliveOfIndia said:

WillPS said:

CliveOfIndia said:

WillPS said:

Total speculation on my part but I wonder if there is a team of people, possibly in an individual, working their way through the accounts, looking for any 'desirable behaviour' and starting the closure process if they see none.

Highly unlikely.  Even if they were looking to get rid of "undesirable" (whatever that may be) accounts, it would be a very simple matter to run a quick computer algorithm and spit out a list of keepers and a list of those to get shot of.  I really don't think they'd go to the expense of paying a team of people to spend months trawling though every single account

Until we see somebody report that they've left a balance on their card, and their card is being closed, my working assumption is they're getting rid of the customers they make no money from.

Well I can sort of give the opposite view - I have always used all my cards regularly, always (and I do mean always!) repaid in full every month, never paid a penny in interest or charges, and earned some nice reward points along the way.  The only letters I've ever had from any of them is to offer me an increased credit limit.  Make of that what you will.

By reward points I assume you are an Asda card holder?

Likely not subject to this round of closures at all in this instance, in that case (going by every other contributor being a Post Office/BoI acquisition customer).

Jaja probably can make money from Asda cardholders, even if they pay in full, since Asda will likely be paying them a commission for usage in store (part of which makes up the enhanced cashback they then pay you).

CliveOfIndia

WillPS said:

CliveOfIndia said:

WillPS said:

CliveOfIndia said:

WillPS said:

Total speculation on my part but I wonder if there is a team of people, possibly in an individual, working their way through the accounts, looking for any 'desirable behaviour' and starting the closure process if they see none.

Highly unlikely.  Even if they were looking to get rid of "undesirable" (whatever that may be) accounts, it would be a very simple matter to run a quick computer algorithm and spit out a list of keepers and a list of those to get shot of.  I really don't think they'd go to the expense of paying a team of people to spend months trawling though every single account

Until we see somebody report that they've left a balance on their card, and their card is being closed, my working assumption is they're getting rid of the customers they make no money from.

Well I can sort of give the opposite view - I have always used all my cards regularly, always (and I do mean always!) repaid in full every month, never paid a penny in interest or charges, and earned some nice reward points along the way.  The only letters I've ever had from any of them is to offer me an increased credit limit.  Make of that what you will.

By reward points I assume you are an Asda card holder?

No.  Actually, Asda is one of the few cards I haven't ever had over the years   I was meaning "rewards" in general, points for various retailers, cashback, etc.