Credit Limit Change

footballaintforbirds

I'm not sure the best place to start this thread, but here goes anyway.

Someone tell me if the Abbey are allowed to do this ?

My wife has an Abbey credit card which had a balance of about £2500 on it, which she paid off. Coming up to Christmas last year, she started using it again and ran up about £1400 on it. AFTER this, Abbey decided to make her credit limit £700 and she has been paying charges on it ever since, as she hasn't brought it under their imposed limit of £700.

Is this legal what they have done and is there any way we can get them to be reasonable ?

Cranston_2

Yes Abbey can do that. It's not nice but they can.

Consider moving to a different cc company, I suggest Citibank in particular.

NickX

Cranston wrote: »

Yes Abbey can do that. It's not nice but they can.

I don't think they are allowed to do this.

Are you saying that they reduced the Credit Limit to below the Current Balance forcing her to incur overlimit charges?

If this is the case, then I'm sure that is no allowed - even when Egg cancelled 161,000 customer's accounts earlier this year, they had to allow them time to repay the debt on a monthly basis, so the Credit Limit would just gradually decrease in line with the Balance Outstanding so that no further debt could be incurred.

footballaintforbirds

NickX wrote: »

I don't think they are allowed to do this.

Are you saying that they reduced the Credit Limit to below the Current Balance forcing her to incur overlimit charges?

If this is the case, then I'm sure that is no allowed - even when Egg cancelled 161,000 customer's accounts earlier this year, they had to allow them time to repay the debt on a monthly basis, so the Credit Limit would just gradually decrease in line with the Balance Outstanding so that no further debt could be incurred.

Yes, they lowered the limit after the money had been spent.

If the limit was in place beforehand, she would never have been able to go over it.

Surely they can't do this ?

NickX

footballaintforbirds wrote: »

Surely they can't do this ?

I don't think they can, I would complain and ask them to refund any overlimit fess.

Cranston_2

I am 90% sure that in their small print you will find they can lower the limit at any time regardless of the balance. However, they can't start charging you fees for being over your limit if its results from their limit reduction.

I hope I am wrong.

Good luck

MABLE

Cranston wrote: »

I am 90% sure that in their small print you will find they can lower the limit at any time regardless of the balance. However, they can't start charging you fees for being over your limit if its results from their limit reduction.

I hope I am wrong.

Good luck

That seems very unfair. If you have been given a credit limt and you spend up to the limit and then the credit provider cuts the limit this would in affect appear on your credit file as exceeded your limit. Therefore affecting your credit rating. I have never, ever heard of that before only when the balance has been paid off.

footballaintforbirds

I have had enough of them and was just looking for a bit of advice or re-assurance before I go after them.

Cranston_2

Phone them up and have a chat with them. Be polite but don't be afraid to ask for the limit you want.

MABLE

footballaintforbirds wrote: »

I have had enough of them and was just looking for a bit of advice or re-assurance before I go after them.

If you phone them try to keep calm. If you end up losing your cool it will not help your case. You need to get your point across in a rational manner.

Best of luck anyway.

Christopherj_2

I have never known any credit card company to do this whilst having an outstanding balance. This seems very unfair and just another money making scheme for these credit companies.