Scotiabank Faces Backlash Over Credit Card Approval Glitch

Customers of Scotiabank are expressing frustration after receiving credit card and line of credit approvals, only to have them abruptly cancelled weeks later due to a system error. The bank has confirmed that this issue affected multiple clients, leading to significant dissatisfaction among those who were initially pre-approved.

One such customer, Taylor Potter from Barrie, Ontario, reported feeling elated when he received a pre-approval for a credit card with a limit of $5,000. However, his excitement turned to disappointment when the card was declined at a gas station after he had already begun using it. “They tried to tell me it’s a glitch in the system and they don’t know what’s going on,” he explained, highlighting the confusion surrounding the situation.

Similarly, Amanda Woodward from Newmarket, Ontario, also encountered issues with her line of credit, which was pre-approved for $7,500. While purchasing back-to-school items for her children, her card was declined. Woodward recounted being informed by customer service that the approval had been issued in error, stating, “They told me the card was given to me in error and that it should have never been offered, or approved, or activated.”

In response to inquiries from CTV News, a Scotiabank spokesperson acknowledged the error, stating, “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.”

The spokesperson emphasized that the bank is addressing the issue, assuring clients that any accounts closed due to this error would not negatively impact their 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,” they added.

Despite these assurances, customers like Potter and Woodward are left feeling dissatisfied. Potter expressed his concern over the shift in the terms of his credit card, explaining that charges made prior to the cancellation would now be treated as cash advances, incurring a higher interest rate of 22.9 percent. “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,” he noted.

Woodward echoed similar sentiments, feeling that it was unfair for the bank to issue credit cards only to cancel them once they had been 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,” she said.

As the situation unfolds, Scotiabank must navigate the challenges posed by these customer experiences while ensuring that their systems are rectified to prevent future occurrences. The bank’s handling of this issue will likely play a crucial role in maintaining customer trust and satisfaction moving forward.