Unsolicited Offers for Credit Cards

Discussion in 'Finance, Property, Law' started by old_bloke, Feb 23, 2005.

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  1. Just recieved an unsolicited offer for a "Arrowcard". Some of you may have too?

    Funny thing is it's from a company called the NAAFI. They say its 'targeted' -got to love the pun, at Military and can be used in 16 million outlets all over the world. Sounds good but with an APR of 'just'18.9%.

    Just a moment ...a quick check on the Mail newspaper money page shows that out of the 94 listed credid cards in the UK . This arrowcard is the joint second WORST APR and with an automatic payment through direct debit you won't even know how deep into debt you are getting.

    Funny thing is I have not had any personnal financial dealings with the NAFFI since 1991 - So how do they know my new rank and BFPO number?

    If you want a credit card check out the Mail money page you could go away with a credit card offering 5.9%.[/b]
  2. Now that's not right.

    We all know the trouble some of the blokes get into with debt - is this really being fronted by the NAAFI?
  3. Will the NAAFI be so kind as to comment?
  4. We accept that the credit card is not the cheapest, but it enables us to lend money to those in the forces whose only other alternatives are the likes of Provident Credit Card (69%) or indeed look at the small yellow advert in last month’s Soldier magazine where the rate is 110%.

    Unfortunately frequent changes of address make it difficult for those in the Forces to get the best rates because credit scorecards disadvantage them. And, to be perfectly blunt, history shows that the Armed Forces default rate is roughly twice that of the general public (16% versus 8%).

    Indeed, talking to other providers, their acceptance rates for unsecured loans and credit cars to military personnel is as low as 10%.

    This debt problem in the military is why we use a set lending criteria, and always use Direct Debits as payment method. Payment by Direct Debit ensures customers protect their valuable credit ratings and also avoid unnecessary ‘late payment’ charges.

    Response to the card shows that many have appreciated this facility.

    We did send out a mail shot to previous and existing group customers, and this was not unsolicited – it followed the guidelines of marketing and regulatory requirements.
  5. I have personnaly never requested anything from the NAAFI since the NAFFI wrongly accused me of obtaining goods on credit and not repaying.

    In that case the NAAFI did not contact me directly. The NAAFI wrote to my C.O. Who had me in for an interview without coffee.

    On explaining to my C.O. that the soldier in question had a name similar to mine and a Regimental number similar to mine but in fact was not me. The fact I was also on detachment in the Falklands at the time of the purchase of said good's, from a NAAFI in the UK was also in my favour.

    So if as you state you sent this mail shot to previous and existing group customers. Can the NAAFI please explain how you know my rank as held now and got hold of my new BFPO number. Since the last time you had my address was 16 years ago in the Uk which was 7 BFPO addresses ago?

    My personnal situation nonwithstanding. how can you justify this exorbinant APR.

    Just because Provident Credit Card charge so much does this make it ok for the NAAFI to offer the second worst APR when compared with the 94 listed in a daily newspaper.

    Trying to defend this outrageous APR by comparing it to those stated...

    There is a fundimental difference between a credit card offered for those with credit problems such as the Provident Credit Card and those serving with a guaranteed monthly income.


    Oh you mean loan sharks.

    As you clearly read Soldier magazine have you also been reading the articles over the past year or so trying to highlight the dangers of debt to our younger soldiers and trying to show them how to get out of it?

    As you stated ...

    Funny that in response to my post you put forward the example from David Stevenson's company and not one from Which?...

    As I stated unsolicited offers for credit cards that the younger soldier might be tempted with.

  6. I change my credit card every 6-12 months, not because i like to max them out, but because with the no interest for 6/12 months deals, i dont see any reason for paying interest.

    Now, i've had 10 addresses in the last 14 years. I've never had a problem with a card company, the most receptive of which to BFPO addresses was egg. If people cant find a card with a competitive interest rate, they need to look harder and talk to the companies - you'd be surprised how friendly they can be if your going to give them business (or pretend to).

    NAAFI - Using the service persons aparant difficulty to obtain a card, then providing one aimed at service personnel, with extortionate interest rates (compared to the competition), is an abuse of the community you claim to "serve". And using the comparison of loan sharks to justify it is just plane insulting, how thick do you think we all are - You should be ashamed of yourselves.

    Rant over

  7. NAAFI says its supplying peeps with cards who can have more debt problems then charging them more interest which gets them into even more debt.....the NAAFI rip off scheme still going then.

    Tossers :evil:
  8. Lacitus servitor, I fail to see how NAAFI cannot make money when all they have too pay is stock and wages. I'm going to stop now as I feel a rant coming on.
  9. Start reading the word credit as 'CREDEBT' It makes a big difference.

  10. Close Brothers PLC bought 80% of NAAFI Financial over 4 years ago (the other 20% is retained by NAAFI). When we purchased the business we discovered a loan book that showed that in excess of 40% of junior soldiers were in arrears (the market norm is 7-8%).

    Much of this had been caused by poor underwriting by the previous owners of the business and the inability to track those that had left the service. As a result of this we decided to stop lending.

    With the experience and understanding we’ve gained of our customers since purchasing the business we have implemented new systems, processes and underwriting criteria. This has now enabled us to launch a new credit card that will not over commit customers. Our underwriting criteria and payment methods are set up specifically to protect our customers from getting into debt, as the last thing we want is for customers to miss payments and get into trouble.

    The only data captured for our mailshot was that of existing and previous customers. Close Brothers PLC does operate under a few different names (now including Arrow), so the customers contacted would not necessarily have dealt with NAAFI Financial. We cannot discuss individual cases on a public forum, but if old_bloke would like us to investigate his personal data, please PM, email info@naafi-financial.com or call us on 00800 1181 1181.

    It is a positive thing that other credit card companies are becoming receptive to the situations of forces personnel – the more choice, the better. What you have to remember is that our services are exclusive to the military, so we do not have a civilian customer base. This means that our customer lending risk is higher than most: as mentioned above, the Forces default rate is twice that of the general public, so our risk rate is twice that of most credit card companies. This is why we charge a higher APR – purely to cover our risk.

    At the end of the day, nobody is forcing anyone to take out a credit card, but the service is on offer for those that want it. We have always been here for our military customers and have no plans to change that.
  11. ugly

    ugly LE Moderator

    Am I the only person who finds the assumption that you have yet to say no means that an un asked for mailshot is not unsolicited? Did these jokers go to the Capmbell school of twisting Queens English to mean anything you want. Do what I have started and collect enough to send one offer back in a prepaid to a different company and so on. I wont even put a stamp on my tax return.

    Cheeky Tw*ts. What happened to an OC's interview before a 100DM stereo on the payment book at the Local Naafi? At least if you were financially embarressed the C8nt in charge would point this out to you.
  12. in_the_cheapseats

    in_the_cheapseats LE Moderator

    Ugly - like the tip :twisted: The never ending c*ap coming through the mailbox is astounding and credit card coys are the worst. They are simply looking after the profit margin and NAAFIs answers so far have been duplicitous at best.

    NAAFI - Always have been disappointed, looks like will continue to be so.

    Ugly - the chain of command can't officially get involved these days in matters of personnal debt (although more fool the Coy Comd/CSM who doesn't have a handle on it). Even the RAO, who may give advice unofficially is not supposed to. Info is given to the soldier on where the local Citizens Advice is and told to crack on, he/she is responsible for his/her actions and money. Long gone are the days of pay parades with the Pl comd telling the soldier that he was keeping back part of his pay (i.e. you're not responsible enough to look after it so we will) before being given a lump just before leave etc. Courts son't allow it.

    However, advice can be given (in a fatherly way!) to avoid certain companies and sadly NAAFI credit is the one that always is Top of the Pops to avoid. We need some competition, me thinks, rather than the dubious convenience of NAAFI
  13. ugly

    ugly LE Moderator

    Naafi arent those the dick turpins who charge for using cash machines?
    Glam am I that I am out nowadays. Admittedly it seemed a bit incongruous that a Major married with dependants, a mortgage on a house he was renting out in UK and a range rover the finance company still owned yet couldnt pay his mess bills on time could raise hell in a threatening manner if I who had no bills and pissed up all my Dms would consider not making the payments on said stereo before allowing me to indebt myself to the Naafi. At least the PRI played ball.
  14. What you have to remember is that our services are exclusive to the military, so we do not have a civilian customer base

    Two questions then.

    Does that mean when I hit civvie street the card will have to be handed back?

    If not

    Once I am a civvie will I get a better APR?
  15. ugly

    ugly LE Moderator

    Touche! Answers awaited Out!
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