Co-Operative Bank Reduced my Credit Limit

loveandlight

Today I received a letter from the Co-Op informing me that they have reduced my credit limit so that I now have no credit limit at all. In effect my limit has been wiped out completely. This is despite having the card for 20 years without ever having missed a payment. I phoned the card and the woman agreed that my account had been run impeccably.

I believe they reduced my limit because I wouldn't open a current account with them when I went in to make a payment to them a couple of weeks ago. The manager also wanted me to apply for a new credit card as well and I told him I didn't want to. He brought my account up on his screen and then got annoyed and told me they could reduce my limit at any time and lo and behold I got this letter this morning. I will take my business elsewhere now but just wanted to warn the rest of you. Avoid any conversations with the Co-Op to take out new cards/accounts in case this happens to you as well.

jonesMUFCforever

I think this is pure coincidence.
Most banks operate bank accounts and credit cards on totally different systems.

loveandlight

This is more than pure coincidence, particularly as I get offers all the time through the post from other card companies to join them, including one received yesterday from Barclaycard.

Interestingly, I have also learned that individual branches do have the power to recommend that certain accounts be passed to their higher office for review.

I just want others to be aware that this could also happen to them.

Chris2000

jonesMUFCforever wrote: »

Most banks operate bank accounts and credit cards on totally different systems.

Staff in Lloyds TSB branches can access a full list of current accounts, savings accounts, credit cards etc. on one screen. They also appear together in online banking.

Co-op Bank online banking shows a list of Your Accounts which include my Visa card.

Are some other banks less advanced?

fiddling_flower_petals

Sorry but I have to agree, this sound like a coincidence.

Staff in all banks are expected to upsell financial products and services, but I wouldn't have thought any refusal to participate should/would result in the reduction of your credit limit.

I'm surprised your phone call to customer services hasn't resolved this issue, I've banked with Co-op for many years and believe there customer service is second to none.

lynxptc

Might have been the case that the manager you spoke to got so annoyed you wouldn't open another account and hit one of his targets that he decided to lower your limit as some sort of "childish payback".

On a separate note, I bank with Natwest and I know that their current accounts and credit cards are run completely differently. The branches open credit card accounts, but once they are open they are run by a different department within the bank and after that the branches have no control whatsoever. If you ask in the branch about your existing card account they will just tell you to phone the customer service line.

loveandlight

fiddling flower petals
I'm surprised your phone call to customer services hasn't resolved this issue, I've banked with Co-op for many years and believe there customer service is second to none.

I actually have hardly ever needed to phone their customer services before despite having been with them for over 20 years. Everybody's experiences are different remember and doesn't mean your experiences with them in the future will always be positive, although I sincerely hope for you they are.

I did phone customer services which is why I have said they told me my account has been managed impeccably. What they also said which I thought was very telling was that they would consider increasing my limit again back to what it was if I sent them my bank accounts from my current account for the past three months and gave them authority to do a credit check. I told her there was no point as if that is the way they treat their good customers then I will take my business elsewhere.

It is so obvious to me that this was an act of retaliation by my local branch. He even took me into a private office and called my credit card account up on his screen and complimented me on the way it had been run. I also told him I didn't want to open up a current account with them as I have accounts elsewhere which I have had for over 25 years and have one of the highest internal behaviour scores you can get with a bank (I'm not bragging, just making a point).

As they have done this to me, they must be doing it to others as well, hence my warning to others.

loveandlight

posted by Chris2000
Staff in Lloyds TSB branches can access a full list of current accounts, savings accounts, credit cards etc. on one screen. They also appear together in online banking.

I agree. I bank with Lloyds and as a customer you get all this information at a glance when you bank online with them.