Personal Finance

Oh Scotiabank, how could you?

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  • Nov 9th, 2017 3:38 pm
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[OP]
Deal Addict
Jul 18, 2016
1839 posts
669 upvotes

Oh Scotiabank, how could you?

Some time ago we read stories about the Canadian banks being attacked for signing customers up for stuff they never requested. I found this rather hard to believe until it happened to me.

After seeing some significant improvement in my business and as a result a significant increase in the transaction count and cash deposits, I setup an appointment to modify my banking plan with them. Of course, this is never a simple request and it requires an appointment. I arrived at my appointment and was immediately informed that the business activity in my account PRE-QUALIFIED me for a business visa card. I thought, GREAT, I don't really need it, after all I have a huge charge limit on my AMEX Business Platinum card, but there are occasions where a business visa would come in handy.

I made a very big point to the agent that I only would accept this card if it was TRULY a pre-approval. I am trying really hard right now to avoid hard enquires on my credit report because this is the primary flag on my Equifax report dragging down my score - too many enquires in the last 12 months. I was annoyed to discover the next day that there was a hard enquiry on my credit report, but I decided to let it slide.

I was truly furious only today when I discovered that I had been automatically enrolled in the creditor insurance at a cost equal to 12% annually regardless of the charged balanced.

Scotiabank, how did my routine request for a simple change to my banking plan turn into a credit card, hard enquiry on my credit report, and unwanted insurance????
58 replies
Deal Addict
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Aug 5, 2003
2087 posts
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North York
um, pretty easy to see; you helped the rep reach their new account goals for the month - too bad they didn't do it honestly though.
[OP]
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Jul 18, 2016
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cliff wrote:
Nov 7th, 2017 3:51 pm
um, pretty easy to see; you helped the rep reach their new account goals for the month - too bad they didn't do it honestly though.
Actually, that's a good point. October 31st appointment. He likely need a little to push himself over the edge.

Yes, honesty is key. A "PRE-APPROVAL" is a pre-approval. It's not an application. If I wanted to apply I would have said so. It annoys me because I don't need this credit card. The charge card with AMEX is more than enough. I run a liquor delivery business and I only use the card to make purchase at the LCBO and Beer Store in Ontario, both of which accept AMEX with a simple tap of my iPhone. This credit card with Scotiabank was just a little bonus but it comes with a price tag of a hard enquiry and 12% per year of insurance. At least, they were good enough to actually send me the insurance documents before sending the credit card, nonetheless ....
Jr. Member
Jul 8, 2017
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From time to when I log on to my bank I often see i am preappoved for some credit line or credit cards, I usually just press declined on all of them. I don't apply for things that I don't need period.
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Dec 8, 2010
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bewiseman wrote:
Nov 7th, 2017 4:06 pm
Actually, that's a good point. October 31st appointment. He likely need a little to push himself over the edge.

Yes, honesty is key. A "PRE-APPROVAL" is a pre-approval. It's not an application. If I wanted to apply I would have said so. It annoys me because I don't need this credit card. The charge card with AMEX is more than enough. I run a liquor delivery business and I only use the card to make purchase at the LCBO and Beer Store in Ontario, both of which accept AMEX with a simple tap of my iPhone. This credit card with Scotiabank was just a little bonus but it comes with a price tag of a hard enquiry and 12% per year of insurance. At least, they were good enough to actually send me the insurance documents before sending the credit card, nonetheless ....
AFAIK there is no such thing as true pre-approval here; there is always a disclaimer.

Scotia did the same to us with the insurance bullshit. I was not happy about that, either.

Still. 5 years later we've been through at least four Scotia Gold Amex cards with sign up bonus on each...
[OP]
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Jul 18, 2016
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Silver1234 wrote:
Nov 7th, 2017 5:00 pm
From time to when I log on to my bank I often see i am preappoved for some credit line or credit cards, I usually just press declined on all of them. I don't apply for things that I don't need period.
This was the first time that I was pre approved in person at an appointment. I very clearly asked him if there would be hard enquiry. I told him the issue with my credit and said that I didn't want the card if there would be a hard enquiry. He said, no, it was pre approved.

The truth is that if that was all there was to it, I would have ignored the hard enquiry and moved on. However, learning today that I had also been enrolled in their outrageous 12%/year insurance, and I was really annoyed after I combined these two issues together in my mind.
[OP]
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Jul 18, 2016
1839 posts
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daverobev wrote:
Nov 7th, 2017 5:06 pm
AFAIK there is no such thing as true pre-approval here; there is always a disclaimer.

Scotia did the same to us with the insurance bullshit. I was not happy about that, either.

Still. 5 years later we've been through at least four Scotia Gold Amex cards with sign up bonus on each...
Yes, as I said above, it was the two issues above.

I haven't tried to renew my Scotia Gold. I like the card too much and don't want to risk losing it. However, it is key to realize that my credit score is borderline (675), and this is precisely why I don't want additional enquiries. The notation on my Equifax report list number of enquires in the last year as first culprit, and the 30 day late almost 6 years ago on my Capital One card, as the primary problems. I am trying to correct both. One will age off next march. The other goes away when I stop applying.
Jr. Member
May 15, 2015
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North York, ON
Complain. If that doesn't work, sever your ties. This is unacceptable.
Deal Addict
Aug 24, 2016
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Just another fine example of the lack of knowledge of front line staff.
They aren't the one making the credit decision, so they shouldn't provide a definitive answer when it comes to whether or not an inquiry will be made.
If the last soft credit pull they performed is aged, and the pre-approval was based on that pull, the system may request a fresh pull.
Front line reps don't know what the system is going to do, and should just say "to the best of my knowledge there shouldn't be a credit inquiry, but I can't guarantee there won't be".

Or it wasn't a pre-approval at all, and the rep just needed a mule.
Deal Addict
Mar 2, 2005
1861 posts
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Their sales staff (I don't carry what kind of cubicle they have and the title they plaster on the glass outside, they are all salespeople at best and nothing more) often pose the question in a way so that you muster an OK, I see or makes sense, instead of a NO. They then assume that its a yes and sign you up.
You have to be duly careful of that if you are on the phone.
I make a point to always cut them off in the middle of their sentence (advice: repeat this behaviour at all cash terminals when asked for points credit card and misc other unwanted stuff and on the phone when calling for support etc) and firmly say "No, I am not interested (remember to include two Nos in one sentence to avoid any kind of confusion)".

Do not be afraid to say a clear no guys, we all know any business (including banks and phone companies) are not there to make you happy but to inflate their bottom line and please their shareholders.

You can complain but the deed is done. Inquiries are not reversed. Let this be a lesson for the future.
[OP]
Deal Addict
Jul 18, 2016
1839 posts
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Deal Grabber wrote:
Nov 7th, 2017 6:09 pm
You can complain but the deed is done. Inquiries are not reversed. Let this be a lesson for the future.
The enquiry is less of a concern. I am more upset with the insurance.

People, make certain that you don't trust the Bank agents. Read everything they ask you to initial. In a perfect world, they should tell you exactly what you're signing ( that's what my phone company [Telus] does), but .....
Jr. Member
Jul 8, 2017
113 posts
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bewiseman wrote:
Nov 7th, 2017 5:37 pm
This was the first time that I was pre approved in person at an appointment. I very clearly asked him if there would be hard enquiry. I told him the issue with my credit and said that I didn't want the card if there would be a hard enquiry. He said, no, it was pre approved.

The truth is that if that was all there was to it, I would have ignored the hard enquiry and moved on. However, learning today that I had also been enrolled in their outrageous 12%/year insurance, and I was really annoyed after I combined these two issues together in my mind.
It sucks I know, I would complain to the branch manager and threaten to move everything elsewhere, hopefully you will get some freebies or at least some fees waived.
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Jan 11, 2004
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Victoria
Phone the CEO's office about this. I did that once and the results were very surprising.
Newbie
Sep 1, 2015
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Niagara Falls, ON
I always start to write on paper or type on phone when rep trying to say BS, then they will stop
Deal Addict
Jan 20, 2016
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Houston, TX
bewiseman wrote:
Nov 7th, 2017 3:26 pm


I was truly furious only today when I discovered that I had been automatically enrolled in the creditor insurance at a cost equal to 12% annually regardless of the charged balanced.

Scotiabank, how did my routine request for a simple change to my banking plan turn into a credit card, hard enquiry on my credit report, and unwanted insurance????
You could not get credit card without signing the application. And you could not get "insurance' without accepting it either.
99% it was a check-box in app form that you click "automatically" ( I do agree they tried their best to favor it, but without YOUR consent they could not sign you on it, still)

Pre-approval just mean that you'd be rather not declined , but oit still will be "normal" application. And you do OVERESTIMATED hard request effect on credit score imo. BTW,
too many enquires in the last 12 month
- seems you're doing too much applications, no other way for them to appear on your profile...
Make the Trudeau drama teacher again!

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