Consumer complaint received 2026-07-16 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Improper use of your report — Reporting company used your report improperly
Company: BARCLAYS BANK DELAWARE
State: CA

Complaint narrative:
Complaint Against Barclays Bank Delaware Use of Internal Records to Circumvent Federal Credit Reporting Time Limits * * I am filing this complaint regarding Barclays Bank Delaware 's denial of my application for a GM Rewards Credit Card. Barclays denied my application solely because, according to its adverse action letter, its own internal records indicate that I previously had a Barclays account that " experienced charge-off, bankruptcy, severe delinquency, or other negative performance. '' Barclays further stated that " A credit bureau report was not used in making this determination. '' The reason for my complaint is that Barclays appears to be using decades-old internal information to accomplish what XXXX intended to limit through the Fair Credit Reporting Act ( FCRA ). Federal law places limits on how long adverse information, including bankruptcies, charge-offs, and other derogatory credit events, may appear on consumer credit reports. Those time limits exist to give consumers a meaningful opportunity to rebuild their credit after the statutory reporting period expires. By refusing to use a consumer credit report and instead relying indefinitely on its own internal database, Barclays appears to be exploiting a loophole that effectively nullifies those consumer protections. If a bankruptcy or other adverse event has become too old to appear on a consumer 's credit report, Barclays should not be able to permanently deny credit based on the same stale information simply because it retained its own internal records. In effect, Barclays ' practice creates a permanent blacklist for former customers, regardless of how much time has passed or how substantially the consumer 's financial circumstances have improved. This undermines the public policy embodied in the FCRA, which recognizes that consumers deserve a fresh start after the statutory reporting period has expired. I respectfully request that the CFPB investigate whether Barclays ' practice : * Constitutes an unfair, deceptive, or abusive act or practice under the Consumer Financial Protection Act. * Circumvents the intent and consumer protections established by the Fair Credit Reporting Act by relying indefinitely on internal adverse information after comparable information is no longer reportable by consumer reporting agencies. * Results in consumers being denied meaningful opportunities to reestablish credit based on adverse events that XXXX intended to have only limited reporting significance. * Complies with the Equal Credit Opportunity Act 's requirements for fair and lawful credit decision-making. The adverse action letter specifically states that Barclays did NOT rely on a consumer credit report and instead based its decision solely on its own internal records. This appears to allow Barclays to retain and use derogatory information indefinitely, effectively bypassing the time limitations that apply to consumer credit reports.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation