UK bank to cardholders: You're not using your credit card, so we'll use it for you...

[DRoseDARs]

Originally posted by Last Conformist
That won't have helped, but it can hardly be laid at the feet of the credit cards, can it?

Given that credit card companies mail out applications to anyone and their dead cat like pedophiles give out candy at Halloween, I'd say they share some of the blame. Whatever company gave her a CC should have known A) she was a teenager and therefore B) NOT a good candidate for someone with a reliably steady income to give a card too.

[Dauphin]

I think you have missed my line of interest in the argument. If you are paying for a rental with your credit card then you are using your card and the comment Zkribbler made in the first instance is more than a bit moot.

[DRoseDARs]

What part of "refuse to use any type of plastic card" did you miss?

[Blake]

Banks are pretty much one of the most evil things on earth.

[Provost Harrison]

Originally posted by Dauphin


Having never rented a car I wouldn't know, but what exactly do you need the credit card for that other forms of guarantee wouldn't suffice?

I've rented vans before and they have just required some form of identification, driving licence and a deposit.

But yeah, this charge thing is getting ridiculous especially as it is not really causing them any harm having these dormant accounts, especially if they are in credit...but it is this one really bugged me...

http://news.bbc.co.uk/1/hi/business/6148776.stm

They are charging a fee to those earning less than £1500 a month? That's nice, charge those with the least ability to pay the fee

The banks declare record profits and then they have the audacity to threaten us with charges for giving them the liquidity that allows them to function, and then there are the charges they levy of dubious legality considering the amount of money they charge. In terms of these charges, I think it is time the FSA pulled their finger out...

[Dauphin]

Originally posted by DRoseDARs
What part of "refuse to use any type of plastic card" did you miss?

Um, I said already that you are discussing something different to me i.e. you are talking about the concept of businesses not accepting anything but plastic. I am saying that if you don't have a credit card, period, then you won't exactly be charged by a bank for not using something you don't have. Also, it's not relevant to discuss the acceptance of plastic as a means of transaction because if you are using it to make transactions then you aren't falling into the category of having a card that you aren't using. But I digress.

[Frozzy]

Im undecided on this one... Im leaning towards the banks wanting to recoup some of the revenue they lose through the lack of interest received.

The 10 pound fine seems rather nominal though, to say the least.

[DRoseDARs]

Again, we don't know the account types involved. My WF credit card doesn't accrue any interest on positive balances and as long as I pay in full any negative balance before the due date I don't pay any interest.

[Dauphin]

Which interest? The APR fee that is charged? The banks make money out of the transaction process on credit cards, it's about 1% of the value of a transaction. If you make no purchases then the account is dormant and there are virtually no costs of administration. The banks don't lose out, they just vary in profitability.

[Frozzy]

Again, we don't know the account types involved. My WF credit card doesn't accrue any interest on positive balances and as long as I pay in full any negative balance before the due date I don't pay any interest.

I just use a debit card. Less fuss.

[Frozzy]

Originally posted by Dauphin
Which interest? The APR fee that is charged? The banks make money out of the transaction process on credit cards, it's about 1% of the value of a transaction. If you make no purchases then the account is dormant and there are virtually no costs of administration. The banks don't lose out, they just vary in profitability.

If you don't use the card, the banks aren't making a thing, and if they can make money they will do so.

The bit I dont get is why charge such an irrelevant fee if they are money-hording bastards.

[Dauphin]

Originally posted by Frozzy
The bit I dont get is why charge such an irrelevant fee if they are money-hording bastards.

They are doing it to nudge people into using their cards. If 90% decide to cancel their cards 5% forget to cancel and 5% start using them to avoid the fine...well the banks have got some new business, raised some easy money and lost customers who weren't making (nor losing) them money.

[Frozzy]

Originally posted by Dauphin


They are doing it to nudge people into using their cards. If 90% decide to cancel their cards 5% forget to cancel and 5% start using them to avoid the fine...well the banks have got some new business, raised some easy money and lost customers who weren't making (nor losing) them money.

Exactly. It's not in the banks' interests to have customers who have their credit cards who arent in credit. After all, customers who dont pay you anything are just as useful as being with a competitor.

[DRoseDARs]

I should clarify:
I primarily use my Wells Fargo DC since it's effectively cash and as such is an immediate payment in full. I occasionally use my WF CC since I have to build credit and I only do so when I have the full amount in my checking account (which is the same as just using my DC or cash, but that doesn't build credit). My CC has a 15.95% purchase APR and a 23.49% cash advance APR, but I always pay any negative balance before the due date so I've never paid more than the original purchase price on any transaction in the 7 years I've had this CC. It has a limit of $1800; started at $800.

[Proteus_MST]

Badthing is that many businesses ion the internet require you to have a credit card.

Take for example second lifeAlthough they write that they accept Credit card or paypal as valid payment, secondlife will only accept paypal as valid payment if your paypal account is connected to a credt card (at least für paypal germany).
Therefore, at least if you also want be able to read the second life forums (which you can only do with stored valid payment info) you will be required to have a credit card.
Same goes for many other businesses in the internet which sadly only accept credit cards.

Especially sad for these internet shop owners as in germany most of the people don´t have any credit cards and therefore they won´t make deals with many german customers .

As for the thread topic:
It´s IMHO not illegal. It´s business after all and customers still can change banks/credit card companies if they find companies that don´t charge any fees for unused credit cards.