Ever since the money laundering regulations came in in 2007 each bank has developed their approach to risk, and often used this an an excuse to dump clients they don’t particularly want. Either because they do feel they are risky, or because they don’t earn them money, because they don’t like their name, or for no obvious reason at all! Consumer pages are full of stories of having accounts closed down with no notice. (https://www.theguardian.com/money/2018/feb/03/natwest-closed-my-account-with-no-explanation)
So I think this is probably another example of a bank cleansing its client database in a clumsy manner and using Brexit as an excuse.
Great Jane - I suspect if that is the case it’s because I don’t earn them enough money. Far from being “a credit risk” I am extremely prudent in my use of my card. I use it steadily / regularly and pay off in full. So “small fry” so far as they are concerned.
And just a warning to anyone else who may be facing the same thing - I have just applied online to HSBC, my own bank, and I have been turned down!!!
This I suspect is because I have no credit rating in the UK. Great! So now I have to get into conversation with one of the credit rating agencies and have the “joy” of paying them money. I remember many, many years ago, going into a TV shop in Clapham - we’d just moved into our first (purchased) house together and wanted a TV. In those days most TVs were rented (good heavens!) and they wouldn’t rent us one - why? Because we had only just moved in and we had no credit rating. OH have to steer me out the shop as I had gone ballistic!
The number of times OH has been refused things as not only does he have no credit rating he hardly exists in the electronic world! It was only a few years back that he finally got a bank card at all, and went on to the electoral roll. He doesn’t use any social media, the phone he uses is in company name not his. Until we moved here everything was in my name, so no gas bill even. It’s getting harder not to fall in with the crowd…
Just wondering if it might be the moment to consider your pensions being paid direct into French Bank Account… or is that another area of difficulty with Brexit ???
Not all of our pensions can be transferred Stella - I say “all” - we have several small ones between us. I have my State and my Unilever pensions paid in France. OH has never bothered. We’ll see.
I’ve decided to let it go. I might want a c/c but I don’t actually need one and life’s too short.
Sue, would you believe it, not 10 minutes after my last post an email arrived for my wife from Barclaycard!
Trying to call them for a discussion is hopeless and looking on line it seems that Barclaycard are systematically weeding out the wheat from the chaff. We both have cards and mine gets used the most for the likes of Amazon and various on line purchases so the balance is never the same each month. On the other hand my wifes card ( not a second card but a seperate account) has just 3 monthly regular payments, Netflix etc. so the monthly account is always the same and less than £30. We have always kept it because of the avialable credit limit (never used) and of course my wifes independence. My wife is not happy but like you we have decided to let it go. Just transfered the 3 monthly payments to my own card and will now have to wait and see if I get the same letter.
Do you think that the automated systems that Barclaycard must use are able to see that there are 2 cards registered at the same address so decide that one can be dumped or is it because the limited use of the card is bad business for them?
Whatever the reason might be it seems that for Barclaycard the customer is not the king but a mere pawn in the game.
I suppose also that as credit card card holders have thier payments insured by the credit provider should a deal go wrong then why should they leave themselves open to risk for less than £30 per month credit of one customer?
My wife has had the same letter from Barclaycard today. This is just the beginning of the sh*tstorm, I’m afraid. As, in the absence of agreed “equivalence” , it will be illegal for UK financial institutions to deal with us, others will follow. Our only hope is that Johnson’s team agree a last ditch trade deal which includes financial services. You’ll forgive me if I don’t hold my breath.
Glad they are not just picking on us!
Seriously, this is going to be very painful for some people who are relying on their credit cards to get them through the current COVID crisis. Barclaycard are allowing people to pay off over their normal payment schedule but borrowing more won’t be possible and it’s obviously not that easy to find another card if you aren’t resident in the UK.
Just again, to warn, I’ve been turned down going direct to my bank. I might have been wiser to have gone through someone like Money Supermarket - or equivalent - to see who might be willing to issue a credit card to someone with little/no credit rating. Horrible rates no doubt, but as I pay in full not an issue. Maybe OH is right, and it’s Amex or nothing.
I ask myself if it is Brexit related or a re-assessment of risk.
As indicated earlier, MBNA have not given us any hint of disquiet about us living in France with a UK credit card but then again, we pay off the balance in full from a UK bank account (which receives regular funds from UK pensions in sterling) never leaving any balance on the account. Surely, we can’t be one of their « better » customers, as I doubt they earn very much from our modest UK spendings
Most stuff we buy on-line these days is in Euro paid by our Fr bank card (no CCs in use here).
If I’m right, they just haven’t got round to it yet. Speaking as a former banker, whilst UK was a member of the EU, under “equivalence” protocols UK financial institutions could legally deal with EU residents. This WILL become illegal on Jan 1st 2021, unless there is a new treaty or the equivalence is renewed. This means that all our financial arrangements in the UK - bank accounts, credit cards, investment platforms, loans etc will be illegal and we will have to make other arrangements. The institutions have no choice in this matter, it is the law.
I suggest that we should urgently devote some time to thinking about how we will deal with this (in fact many of us may have already done so, given that it’s been four years since the Brexit vote).
Very unlikely to happen with the UK as a global financial hub - many banks have already moved certain parts of their operations to EU countries to prepare for the changes that will inevitably occur.
There is also a major re adjustment of credit going on globally so it’s not surprising that some banks / lenders are taking the opportunity to close accounts of customers they make nothing or little from. After all in the UK you very rarely pay for any of the bank services whereas it appears to be standard in other european countries.
Good question. As it stands, you would have to ask your pension provider to pay directly to your French bank (at whatever FX rate). You might be able to set up a joint bank account with a UK relative, but that’s by no means certain. Other than that I have no idea, nor - I suspect - does HM Government (nor does it care).
Correct, Peter. However their target is big business, not our current accounts. I worked in seven foreign banks in London and they didn’t have a single personal account between them.
Believe me, I hope something is worked out at the last minute, because otherwise I shall have a lot of hassle and huge expense, but as Johnson seems to become more erratic and intransigent by the day, I am getting very worried.
As I understand it, the banks are more worried than we are and have been doing their utmost to sort themselves out. Either by moving location of headquarters, or forming partnerships or whatever. And then there’s the whole issue of passporting, which caused us some difficulty finding an annuity provider.
