Credit Limit reduction to below my current balance - any help?

joanneg_2

Has anyone else experienced this lately?

I came back from holiday a couple of weeks ago to find a letter from Skycard (Barclays) informing me they had reduced my credit limit by over £5,000 to an amount which was below my actual outstanding balance.

Another letter, dated the same day, demanding the difference or I would be charged for going over my credit limit!

I tried to call them and reason with them but had no luck so have contacted the Financial Ombudsman who have had no luck so far either.

All I want is for them to increase my limit to my outstanding balance as I'm sure this will be affecting my credit rating and could result in me getting into financial difficulties which I don't need.

Any advice would be gratefully received. Thanks.

bigstevex

The only way that should happen is if they lowered your limit but you had outstanding transactions to be added. Barclaycard lowered my limit the other month but down to £50 above what was on the card,

i'm no expert though sorry

joanneg_2

I checked this with them and my last transaction came through two days before they made this decision ..... its the bare faced cheek to pull a stunt like this that gets me.

And at the top of all their correspondence they state they are responible lenders!

Geenie

Don't they have to give you ample warning of changes?!! Have you been reading all the small print on previous statements, as it is easy to overlook changes if not diligent .....something I learn't the hard way once.

If you think you have a genuine case, keep the pressure on the Financial Ombudsman, and provide all the details of dates etc.

londonuk2008

not surprised with barclays/card - but I didnt think they could take your limit below what you owed , thus causing penalties...

twiglet333

Barclaycard have just slashed my limit!!!! I paid the whole thing off, so they have obviously got the hump now! Can't believe it.

Geenie

twiglet333 wrote: »

Barclaycard have just slashed my limit!!!! I paid the whole thing off, so they have obviously got the hump now! Can't believe it.

I pay the full amount off each month, and they have never got the hump with me so far! My limit has never gone down only up! And I am supposedly one of those people that don't make them any money!

They work in mysterious ways for sure!

latecomer

I agree with the others that they shouldn't be allowed to cut your limit below what you actually owe but I suspect the decision would have been made when your balance was lower and hence it probably wasn't intentional.

If you have a good credit rating then I'd apply for another card with a 0% period and transfer the whole balance/as much as you can elsewhere.