I had something of a fright this morning. I tried to buy an App for my iPhone and my credit card was declined. This can’t have been any sort of data entry error as I’d bought many Apps before, and the card was good until May, so I figured there might have been a fraud problem and fired up a computer check my account.
Worryingly, my credit card account was missing from my online banking details. I eventually worked out that RBS has set up a new and entirely separate online banking system for credit cards and I needed to open an account in that as well, but when I tried to I was told that my card didn’t exist.
Very worried now, I tried to call customer services. Skype told me that the phone number I was using, which I got from the RBS web site, did not exist.
At this point I was beginning to think that I had accidentally fallen into an episode of The Twilight Zone, but I checked my last statement and found that RBS had the wrong number for their customer support service on their web site. I called the right number, and after a long time on hold (at 18c/min) I eventually got through to a human being.
“Oh,” said the nice lady, “your account has been canceled. We don’t do that sort of card any more.”
This was, of course, news to me. It eventually transpired that notice of the termination of the account had been given in one of those “variation of terms” notices that banks send out at regular intervals to tell you that your APR has gone up and all of the benefits they promised you when you signed up for the card are gradually being withdrawn. There was nothing on the statements themselves, and I know they have the technology to add special messages. Conclusion: RBS does not want me as a credit card customer any more.
And to be honest, I’m not surprised. I am, after all, one of those annoying people who pay off their bills on time and don’t run up massive debts that cost me a fortune in interest payments. For a UK bank, that makes me a very bad customer.
At the risk of sounding like an old fogey, this sort of thing worries me. We have got so used, as a society, to having everything very cheap or free that for businesses to make money out of us they have to resort to subterfuge. That might mean banks offering very cheap credit in the hope you’ll get into debt; it might mean utility companies having direct debit deals under which they always take more money that you owe so that they are getting free loans from you; it might mean RyanAir offering ludicrously cheap flights but then nickel-and-diming you for everything thereafter; and it might mean electronics companies trying to con you into very expensive and worthless extended warranties when you buy new equipment. It is a daft way to be doing business, and it thoroughly destroys any trust between business and consumer.
Anyway, I now need a new UK credit card. I don’t want to have one, because UK banks have no real fraud protection (they claim that they do, but if you read the small print you find that they can get out of any claim). I would much rather use my US cards. But many UK retailers either won’t accept a card that doesn’t have the chip-and-pin security theater system, or in the case of online purchases won’t accept a card that isn’t registered at a UK address, so UK card is pretty much a necessity.
I’m thinking I might go to Amex. I know there are stores than don’t accept them, but I’ve been very impressed with their service in the US and they do appear to be still in the business of providing credit cards, not in the business of encouraging consumer debt.