Cancelled Account

newt1234

I’ve just received a letter from MBNA my credit card company to say my account will be closed in 2 months time with no explanation as to why. After ringing them they said they didn’t know why but the account will definitely be closed. They also said I couldn’t make a complaint as ‘no banking error’ had been made. 

   I haven’t used this card for a while although initially used it a lot and have always made repayments on time. Can I do anything about this or complain to an ombudsman & will it affect applying elsewhere for future credit? Thanks.

molerat

Purely a business decision as you are not using the card.  You have no valid complaint as they have given you notice as per the T&Cs.  Your fairy story credit score will likely drop, any change will do that, but no real effect on your file.

DullGreyGuy

To have a complaint you must show that its likely to cause you a financial loss or material distress/ inconvenience. What is the loss of a card that you dont use going to cost you?

You can only go to the Ombudsman after receiving a response to your complaint from the bank or 8 weeks have passed since your complaint was logged. 

On your credit history it will simply show the account was closed, the other companies wont know who instigated the closure or why and so as long as there are no defaults/no debt write offs it wont be a black mark.

Each lender has its own lending criteria... some will like to see that other FS companies trust you and that you an handle high limits without issues. Others will think that the card is clear today but what would happen if you maxed it out tomorrow... with a closed account thats no longer a risk. 

born_again

newt1234 said:

I’ve just received a letter from MBNA my credit card company to say my account will be closed in 2 months time with no explanation as to why. After ringing them they said they didn’t know why but the account will definitely be closed. They also said I couldn’t make a complaint as ‘no banking error’ had been made. 

   I haven’t used this card for a while although initially used it a lot and have always made repayments on time. Can I do anything about this or complain to an ombudsman & will it affect applying elsewhere for future credit? Thanks.

They have made a business decision. So it is pointless complaining. They will not change their mind. FOS would back them as well.

Doubt it will effect anything.

If you get another CC, then keep using it. Even if it is only once every couple of months. After so log of non use they go dormant & if it is not being used they are a greater fraud risk. As people not using accounts, tend not to check them.