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TSB lowers credit limit with one day's notice
SuzieSue
Posts: 4,109 Forumite
in Credit cards
How is this allowed? I received a letter today saying that my credit limit was being reduced tomorrow (8th March).
The letter was dated 1 March, but either they delayed putting it in the post or there was a postal delay.
But even without the delay, how is it acceptable to reduce someone's credit limit with 1 week's notice.
it doesn't matter to me as I am stoozing and am on a 0% balance transfer deal with a balance below the new limit. But how do the regulators allow this for people who can't suddenly magic up money in a day?
The letter was dated 1 March, but either they delayed putting it in the post or there was a postal delay.
But even without the delay, how is it acceptable to reduce someone's credit limit with 1 week's notice.
it doesn't matter to me as I am stoozing and am on a 0% balance transfer deal with a balance below the new limit. But how do the regulators allow this for people who can't suddenly magic up money in a day?
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Comments
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Why would you need to magic up money in one day if you were below the new credit limit. I doubt very much they would reduce it below someones existing balance.0
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How is this allowed? I received a letter today saying that my credit limit was being reduced tomorrow (8th March).
The letter was dated 1 March, but either they delayed putting it in the post or there was a postal delay.
But even without the delay, how is it acceptable to reduce someone's credit limit with 1 week's notice.
it doesn't matter to me as I am stoozing and am on a 0% balance transfer deal with a balance below the new limit. But how do the regulators allow this for people who can't suddenly magic up money in a day?
Perhaps could have been to do with the little bit of cold weather we had last week? I didn't get any post Thursday, Friday or Saturday...Dwy galon, un dyhead,
Dwy dafod ond un iaith,
Dwy raff yn cydio’n ddolen,
Dau enaid ond un taith.0 -
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They lowered mine a couple of years ago - also stoozing - without any notice. I went over my limit as a result. The charge was refunded and no markers left on my file.
It's annoying - and I wouldn't have a TSB card again because of it - but they lower limits to stop you borrowing. Giving people a long notice period could be considered irresponsible.
Given that they can close your account immediately for whatever reason they like this isn't really such a big deal. No one should be relying on the available credit on a card to the degree that something like this would cause a problem.0 -
Deleted_User wrote: »How would it not be allowed? It's their money and they can choose to reduce your credit facility.
Because vulnerable borrowers need to be protected. They should be required to give at least 14 days notice and preferably 30 days.0 -
But how are you a vulnerable borrower, as you are not using the credit they have removed?
It's not as if they are asking anyone to pay back a huge amount of borrowing.0 -
shortcrust wrote: »They lowered mine a couple of years ago - also stoozing - without any notice. I went over my limit as a result. The charge was refunded and no markers left on my file.
It's annoying - and I wouldn't have a TSB card again because of it - but they lower limits to stop you borrowing. Giving people a long notice period could be considered irresponsible.
Given that they can close your account immediately for whatever reason they like this isn't really such a big deal. No one should be relying on the available credit on a card to the degree that something like this would cause a problem.
Did you lose your promotional rate?
It is irresponsible to give people one day's notice.
No, no-one should and I have never paid a penny's interest on a credit card but some people are struggling through not fault of their own (unable to work due to cancer etc) so this should not be allowed to happen.0 -
Deleted_User wrote: »But how are you a vulnerable borrower, as you are not using the credit they have removed?
It's not as if they are asking anyone to pay back a huge amount of borrowing.
I am not vulnerable. I am worried about people who are.
They don't know that I could pay my credit card off several times over today but they don't care if I couldn't.0
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