A fool and his money..... Posted March 20 Share Posted March 20 Fair enough. Not huge advantages over a debit card or Revolute card then? I guess the whole credit card business relies on people spending beyond their means to be profitable. Quote Link to comment Share on other sites More sharing options...
Albert Tatlock Posted March 20 Share Posted March 20 10 minutes ago, newaccount said: Have a red of this https://www.headforpoints.com/best-uk-avios-airline-hotel-credit-cards/ I'd rather be in the black thanks. 1 Quote Link to comment Share on other sites More sharing options...
Banker Posted March 20 Share Posted March 20 2 hours ago, John Wright said: Ring fencing was introduced over a decade ago. The de carding is much more recent. It was exacerbated by Brexit which made banks examine where their customers were based. They got rid of IoM and CI clients as collateral damage in getting rid of eu residents. And of course offshore financial centres are perceived as high risk for AML compliance and banks are risk averse and the computer says no. But the one thing it isn’t related to is ring fencing. Ring fencing took effect from 1/1/2019 so not over a decade ago , think credit cards starting not being offered early 2022 , probably delayed credit cards consideration because of compliance etc taking their normal inordinate amount of time then referring to legal plus Covid delays 1 Quote Link to comment Share on other sites More sharing options...
Kevlar Posted March 20 Share Posted March 20 (edited) Ring fencing was a recommendation of the 2012/2013 Vickers Report https://researchbriefings.files.parliament.uk/documents/SN06171/SN06171.pdf 2019 was the latest date at which it could apply, Lloyds Bank ring fenced in 2017 and Barclays in 2018. Edited March 20 by Kevlar Quote Link to comment Share on other sites More sharing options...
mad_manx Posted March 21 Share Posted March 21 3 hours ago, A fool and his money..... said: Fair enough. Not huge advantages over a debit card or Revolute card then? I guess the whole credit card business relies on people spending beyond their means to be profitable. I have a few for miles/ points but I pay them off in full every month Provided you time it right your money can sit in the bank longer and earn interest for over a month . You mentioned about car hire where credit cards are better.. Another area is hotels as some put a hold on the card. This can take a week or even longer to be released. Most of my cards do not have fees anyway and they don't charge an interest as long as you pay off in full Quote Link to comment Share on other sites More sharing options...
John Wright Posted March 21 Share Posted March 21 7 hours ago, Banker said: Ring fencing took effect from 1/1/2019 so not over a decade ago , think credit cards starting not being offered early 2022 , probably delayed credit cards consideration because of compliance etc taking their normal inordinate amount of time then referring to legal plus Covid delays No. 1/1/19, 6 years ago, was the last date by which all banks had to have implemented ring fencing. It was brought in by 2012 legislation and the first banks ring fenced in 2014. Theres no mention of credit cards. It’s about exposure to threat. 250,000 people holding cards in the crown dependencies doesn’t constitute any threat to stability of any UK bank/card issuer. Its nothing to do with delayed compliance or covid. I’ve set out the practical reasons accurately. Quote Link to comment Share on other sites More sharing options...
Non-Believer Posted March 21 Share Posted March 21 8 hours ago, Kevlar said: Ring fencing was a recommendation of the 2012/2013 Vickers Report https://researchbriefings.files.parliament.uk/documents/SN06171/SN06171.pdf 2019 was the latest date at which it could apply, Lloyds Bank ring fenced in 2017 and Barclays in 2018. Another "Banker Fact" debunked 🙄 1 Quote Link to comment Share on other sites More sharing options...
Banker Posted March 21 Share Posted March 21 2 hours ago, John Wright said: No. 1/1/19, 6 years ago, was the last date by which all banks had to have implemented ring fencing. It was brought in by 2012 legislation and the first banks ring fenced in 2014. Theres no mention of credit cards. It’s about exposure to threat. 250,000 people holding cards in the crown dependencies doesn’t constitute any threat to stability of any UK bank/card issuer. Its nothing to do with delayed compliance or covid. I’ve set out the practical reasons accurately. In your opinion but I’ve told you the main reasons from banks point of view so we’ll agree to disagree. Quote Link to comment Share on other sites More sharing options...
Declan Posted March 21 Share Posted March 21 Why is John struggling to understand this point? The legislation is beside the point. It's simple. One of the unintended consequences of ring-fencing is that the cards function and the local banking services in the Isle of Man ended up in different parts of banking groups. This means the card-issuing half of the group don't have island based legal and risk teams. And the half of the group with offshore functions doesn't have a credit card issuing facilities. As part of periodic reviews of services and risk, this anomaly is noted and they have made a business decision on whether it's more cost effective to find a solution or not offer the service. 2 Quote Link to comment Share on other sites More sharing options...
Kevlar Posted March 21 Share Posted March 21 2 hours ago, Declan said: Why is John struggling to understand this point? The legislation is beside the point. His point seems to be quite clear. The ring fencing hasn’t really affected the ability of a bank here to issue a VISA or a Mastercard backed by an IOM bank account. VISA and Mastercard are global operations. Quote Link to comment Share on other sites More sharing options...
Banker Posted March 21 Share Posted March 21 (edited) 3 hours ago, Declan said: Why is John struggling to understand this point? The legislation is beside the point. It's simple. One of the unintended consequences of ring-fencing is that the cards function and the local banking services in the Isle of Man ended up in different parts of banking groups. This means the card-issuing half of the group don't have island based legal and risk teams. And the half of the group with offshore functions doesn't have a credit card issuing facilities. As part of periodic reviews of services and risk, this anomaly is noted and they have made a business decision on whether it's more cost effective to find a solution or not offer the service. Probably because he thinks he is always right no matter the subject! Edited March 21 by Banker Quote Link to comment Share on other sites More sharing options...
Max Power Posted March 21 Share Posted March 21 2 hours ago, Declan said: Why is John struggling to understand this point? The legislation is beside the point. It's simple. One of the unintended consequences of ring-fencing is that the cards function and the local banking services in the Isle of Man ended up in different parts of banking groups. This means the card-issuing half of the group don't have island based legal and risk teams. And the half of the group with offshore functions doesn't have a credit card issuing facilities. As part of periodic reviews of services and risk, this anomaly is noted and they have made a business decision on whether it's more cost effective to find a solution or not offer the service. Yes, it’s a fact of life. Many UK based finance and insurance functions are no longer available to Isle of Man residents and businesses. Years ago, several car manufacturers withdrew their car finance facilities from IoM based customers. Then more recently withdrew their lucrative stock funding from their dealers, making it difficult to stock new and used vehicles and leaving them to make more expensive arrangements locally. IoM, a financial centre where you can? Phfffft! Quote Link to comment Share on other sites More sharing options...
Max Power Posted March 21 Share Posted March 21 51 minutes ago, Kevlar said: His point seems to be quite clear. The ring fencing hasn’t really affected the ability of a bank here to issue a VISA or a Mastercard backed by an IOM bank account. VISA and Mastercard are global operations. And yet Barclaycard withdrew my card without warning, due to lack of use, mainly due to the pandemic and lack of travel, won’t reinstate or issue a new one as IoM residents are no longer entitled to one. This despite me being a Barclays customer since 1984? Quote Link to comment Share on other sites More sharing options...
Kevlar Posted March 21 Share Posted March 21 3 minutes ago, Max Power said: And yet Barclaycard withdrew my card without warning, due to lack of use, mainly due to the pandemic and lack of travel, won’t reinstate or issue a new one as IoM residents are no longer entitled to one. This despite me being a Barclays customer since 1984? Precisely it has nothing to do with ring fencing. 1 Quote Link to comment Share on other sites More sharing options...
John Wright Posted March 21 Share Posted March 21 7 hours ago, Declan said: Why is John struggling to understand this point? I’m not struggling. The points I’ve made are correct. It’s not ring fencing. The question as to whether the UK parent is willing and able to issue a CC to a customer in the IoM who is a customer of their IoM subsidiary is about risk, administration, collection. It’s nothing to do with the ring fencing. Quote Link to comment Share on other sites More sharing options...
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