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  • Feb 17th, 2014 6:56 pm
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Newbie
Oct 5, 2013
8 posts

denied credit card

I just got denied for a credit card with this very brief email:
Dear Sir/Madame:

Thank you for applying for .....

We regret to inform you that we are unable to approve your application as it does not meet our credit criteria at this time.Thank you again for your application.
Absolutely nothing else. I have an income twice as high as the one required by the bank for the card and a 850 credit score.

I leave in Ontario and the Ministry of Consumer Services web site says:
I’ve been denied credit. What are my rights?

If a person denies you credit, he or she must tell you:
  • That you were denied credit because of information received from a consumer reporting agency or from another source
  • That you have 60 days to ask for the name and address of the consumer reporting agency or the nature and source of the information that was used as the basis for denying credit.
Do I have any recourse here? Based on what Ontario Consumer Reporting Act says I believe that the bank should explain the decision.

Any comments would be greatly appreciated.
16 replies
Member
Nov 6, 2013
275 posts
38 upvotes
Vancouver
Call the financial institution to get more information.
Sr. Member
Nov 28, 2010
911 posts
135 upvotes
Toronto
I'd just try another bank. There are plenty of them, so there is no need to prefer one over another at this point.
IMHO it is pointless to chase the bank asking to disclose the exact reason you had been denied. I don't think they have to provide you details.
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Apr 16, 2007
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Financial District B…
markus39 wrote:
Feb 17th, 2014 1:57 pm
I just got denied for a credit card with this very brief email:



Absolutely nothing else. I have an income twice as high as the one required by the bank for the card and a 850 credit score.

I leave in Ontario and the Ministry of Consumer Services web site says:

Do I have any recourse here? Based on what Ontario Consumer Reporting Act says I believe that the bank should explain the decision.

Any comments would be greatly appreciated.

That you were denied credit because of information received from a consumer reporting agency or from another source <- they will reply that their credit decision was made from data obtain by either Equifax and/or Trans Union

That you have 60 days to ask for the name and address of the consumer reporting agency or the nature and source of the information that was used as the basis for denying credit.
<-they will supply you with Equifax's or Trans Unions addresses and the nature of the source is that they are both credit bureau systems used for the purpose of underwritting and qualifying granting credit
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP
forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Jr. Member
May 31, 2006
157 posts
21 upvotes
I want to express my feeling too about credit card application. I was living in Canada for over 26 years and I got my first credit card since 1992 with TD with a credit limit of 500. So far I still couldn't understand the credit requirment for each bank as some bank is very easy to get credit card while some bank I never never able to approve a credit. I try millions time for CHASE CREDIT CARD AND none of them was approved and I am getting really mad about it. I don't understand why some people can get this credit card so EASY. I am making over 170000 a year and I got house RRSP mutual fund car etc. On the other hand , I deal with RBC and RBC send me an invitation to apply platimum VISA (36 MONTHS BALANCE TRANSFER FOR ONLY 5.99 %) no transfer fee and I applied on line and guess what It APPROVED me right away with the credit limit of 18500 . i was surprised about that. I got an AMEX with a limit of only 4000 and request a credit limit increase and it was declined. Why RBC and AMEX share the same credit report . one can get approved and on get declined. I dont really understand the credit approving system of Canada.
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Feb 15, 2008
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Some credit card issuers simply do not want people with perfect (or near perfect) credit scores. Such customers do not generate much revenue compared to the costs they impose. I wouldn't take it too seriously. There are plenty of other issuers to apply for a credit card from.

Ontario law is irrelevant here as the banks are generally nationally regulated, the law effectively being ultra vires. So you couldn't even bring a complaint against a Bank Act-regulated institution even if you wanted to, under provincial statute.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Feb 15, 2008
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mikeymike1 wrote:
Feb 17th, 2014 2:53 pm
That you were denied credit because of information received from a consumer reporting agency or from another source <- they will reply that their credit decision was made from data obtain by either Equifax and/or Trans Union

That you have 60 days to ask for the name and address of the consumer reporting agency or the nature and source of the information that was used as the basis for denying credit.
<-they will supply you with Equifax's or Trans Unions addresses and the nature of the source is that they are both credit bureau systems used for the purpose of underwritting and qualifying granting credit
Lenders keep internal proprietary records as well. One may have an entitlement under PIPEDA to such. But as I would advise the OP, no need to get all in a tiffy over a mere credit card with so many issuers out there.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Mar 20, 2009
8862 posts
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It's worth asking why. Sometimes it's just a silly error.

One day I applied for a Costco Amex card on while I was at the store. A while later I got a letter telling me that regretfully after careful consideration I'd been turned down. I called their number to ask "WTF?", and discovered that the in-store agent who typed in my application had accidentally mistyped my income and understated it by a factor of 10. Ironically I had just canceled my regular Amex card a few months earlier, and their "careful consideration" apparently didn't extend as far as doing a basic check of their own records, let alone an actual credit check. I told them I didn't need it any more, and kept the free gift I got for applying. :)

On another occasion I was astonished when my daughter received a Mastercard with a $10,000 limit even though she was a student with no income, no credit history, and frankly no financial responsibility. She applied for a Zellers store card to earn points one day when she was in the store. I think she maybe bought something on the card one time and paid it off. A while later GE Credit bought out the Zellers financial program and issued new GE Mastercards in place of the former Zellers cards. How they came up with a $10,000 limit I don't know. I made her cut it up before she could get herself in real trouble. :)
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Oct 7, 2012
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Mark77 wrote:
Feb 17th, 2014 3:21 pm
Some credit card issuers simply do not want people with perfect (or near perfect) credit scores. Such customers do not generate much revenue compared to the costs they impose.
clever
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May 28, 2012
8889 posts
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Saskatoon
Mark77 wrote:
Feb 17th, 2014 3:21 pm
Some credit card issuers simply do not want people with perfect (or near perfect) credit scores. Such customers do not generate much revenue compared to the costs they impose. I wouldn't take it too seriously. There are plenty of other issuers to apply for a credit card from.
I don't think it's that simple. People who pay off their balance every month may not make a huge profit for the credit card company, but they are also less likely to default on their payments. Can't say that about the people who have ten maxed out credit cards and only pay the minimum each month. Also consider, the credit card companies make a lot of money on merchant fees as well.

I have never been denied on a credit card application, but then, I'm not applying for a new one ever couple of months either.
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Mars2012 wrote:
Feb 17th, 2014 5:15 pm
I don't think it's that simple. People who pay off their balance every month may not make a huge profit for the credit card company, but they are also less likely to default on their payments. Can't say that about the people who have ten maxed out credit cards and only pay the minimum each month. Also consider, the credit card companies make a lot of money on merchant fees as well.
Sure, but go look at Glacier Credit Card Trust's reporting, for instance (Canadian Tire Credit Card products). They pull their 19%, lose 7% a year or so to defaults, and still manage to make 12% on their money, even more with the leverage they use.

Off of a customer who pays off their card, on-time, each and every month, that's hurting their results. They really don't want that customer, to be lending to them essentially for 0% for the billing cycle. The 2% interchange fee they earn (which is gross of fraud losses) doesn't even come close to making up for that. Such a customer is not accretive to earnings. Especially if they have to give cash back or buy Aeroplan points for that customer.

People with high scores tend to be those sorts of people. And some card lenders simply don't want them as they're aiming for the high ROA and ROE.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
Sr. Member
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Apr 28, 2012
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QC
And now you are penalized with a hard inquiry on your credit report. Harper should introduce regulation to forbid the reporting of credit applications between institutions. That's a breach of privacy. It's none of anyone's business whether I applied for credit at another institution. That's just too intrusive.
Sr. Member
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Oct 7, 2012
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Montreal
Sure, but go look at Glacier Credit Card Trust's reporting, for instance (Canadian Tire Credit Card products). They pull their 19%, lose 7% a year or so to defaults, and still manage to make 12% on their money, even more with the leverage they use.

Off of a customer who pays off their card, on-time, each and every month, that's hurting their results. They really don't want that customer, to be lending to them essentially for 0% for the billing cycle. The 2% interchange fee they earn (which is gross of fraud losses) doesn't even come close to making up for that. Such a customer is not accretive to earnings. Especially if they have to give cash back or buy Aeroplan points for that customer.

People with high scores tend to be those sorts of people. And some card lenders simply don't want them as they're aiming for the high ROA and ROE.
A bit sinister with CT now brought up
Almost like CT benefits from marketing their cards particularly in their store aisles because people who can be "plucked" this way, in this fashion, are probably going to be less savvy with finances and more likely to carry a balance and benefit the company with more revenue?
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Feb 15, 2008
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gogoblender wrote:
Feb 17th, 2014 5:40 pm
A bit sinister with CT now brought up
Almost like CT benefits from marketing their cards particularly in their store aisles because people who can be "plucked" this way, in this fashion, are probably going to be less savvy with finances and more likely to carry a balance and benefit the company with more revenue?
Of course, they want the dumbest customers possible. So long as they have a job. Which most people do. Watch that Gail Val-Oxlade show sometime, you'll understand the sort of people they're targeting.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Feb 10, 2013
3289 posts
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Richmond
Mars2012 wrote:
Feb 17th, 2014 5:15 pm
I don't think it's that simple. People who pay off their balance every month may not make a huge profit for the credit card company, but they are also less likely to default on their payments. Can't say that about the people who have ten maxed out credit cards and only pay the minimum each month. Also consider, the credit card companies make a lot of money on merchant fees as well.

I have never been denied on a credit card application, but then, I'm not applying for a new one ever couple of months either.
it's a steady steam of money but people who only make the min payments are what they want. ;)
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