Customers with one of Canada’s major banks say they received credit card and line of credit offers, only to have them cancelled weeks later without notice.
“I was really happy when I saw they approved me at $5,000,” Taylor Potter, of Barrie, Ont., told CTV News.
Potter was one of several Scotiabank customers who contacted CTV News to say they were pre-approved for credit cards and lines of credit, but after they began using them, they were cancelled.
Potter said he was using the card and had already made a payment when it was declined at a gas station.
“He goes down to the bank and on the way down there he goes to get gas, and his credit card is declined,” said Victoria Potter, Taylor’s mother.
When Potter called the bank, he said he was told he never should have been issued the card in the first place.
“They tried to tell me it’s a glitch in the system and they don’t know what’s going on,” he said.
Amanda Woodward, of Newmarket, Ont., told CTV News she was approved for a line of credit for $7,500 with Scotiabank.
“In my online banking, I received pre-approval for a line of credit from Scotiabank,” said Woodward.
She said she was buying back to school items for her children when the credit card was declined.
“They told me the card was given to me in error and that it should have never been offered, or approved, or activated,” said Woodward.
When CTV News reached out to Scotiabank, a spokesperson said, “Scotiabank cannot comment on any individual client matters for privacy reasons. However, we can confirm that some Scotiabank clients recently received an offer for a pre-approved ScotiaLine® Personal Line of Credit or credit card that they were not eligible for in error.”
“To the extent any accounts have been closed, we have taken steps to ensure that the closure of these accounts will not negatively impact clients’ credit bureau reporting. We understand the frustration this may have caused and sincerely apologize to those who received this offer in error. We are reaching out directly to affected clients to provide clarification.”
Potter was frustrated to be told the money he charged on his credit card would now be treated as a cash advance, meaning he would be charged a higher interest rate.
“When they cut off the card, they said they are now changing it from a regular credit card interest rate to a cash advance interest rate (which is 22.9 per cent),” said Potter.
Woodward also said she feels it’s unfair to issue a customer a credit card only to cancel it once it starts being used.
“Pretty much, the customer service agent was telling me ‘too bad, so sad.’ I was told it was given to hundreds of people in error and there is nothing (they) are going to do about it,” said Woodward.
