Credit card stopped can they?

Question

Hi i recently was told by abbey that i had been pre a[pproved for a credit card and after accepting the offer a week or so later the card arrived.

I used the card for 3 days before it was stopped.

When i contacted abbey they said they had stopped the card as they had found out i had a default from a former address (something i had not tried to hide! but they never asked!!)

They now say they wont reactivate the card until the old debt is paid off even though its a company entirley unrelated to them selves.

Is this fair?? Have they mis-sold the product, and help would be apprecitaed.

Thanks!

Answer 1

They've done nothing wrong, certainly nothing illegal or unfair.

Answer 2

Actually yes they can do it.  When your pre-approved for a card it means that the credit card company has gotten your information from another source such as a car loan, store card account etc that have the same lending criteria they do.  Once your account is open with them this gives the credit card company the right to pull up your credit report and see if you have defaulted on anything else (this is also how they determine if they will give you a credit line increase). If there is anything derogatory on your credit report the company has the right to lower your credit limit, place holds on your card to prevent you from spending and in some cases close your account out all together.  The only way to know what rights you have as a consumer is to read your card member agreement (which is purposely written in fine print and in legal terms so you will not want to read it).

Answer 3

well you look like you walked into that problem like, if you knew you had debt then you should not have taken on the opportunity to create more debt, esp in the current climate of the credit crunch for example

Answer 4

No. Anything like that and you have an obligation to let them know. As you did not, they are well within their rights to stop it.

Answer 5

Depending where you reside, a "pre-approved" notice is just that! This means you met the criteria to get the card initially. I have never heard of a card company revoking a card unless you have violated the contract. ( been over your spending limit for X amount of months. etc etc)

Normally with those "pre-approval's" you met the criteria when they offered the card. Did this debt get placed on credit reports after the fact? If not, they are in violation.  

Call your Consumer Protection Dept. in your state.

Good Luck.

Answer 6

they have every right to refuse you credit, if someone had a debt would you lend them money as well? use your loaf eh

Answer 7

Read all of the fine print they sent you with the card, I'm sure it's in there somewhere.  They make it like 500 pages long and use words no one without an English degree would understand.  They can pretty much do whatever they want since it's their card.  

Answer 8

ask them why this didnt appear when you first applied? they cant do another credit check on you without asking.