Terrible treatment by Barclaycard - limit decrease and treated like a criminal!

jimmegee

Has anyone else had this? My Morgan Stanley card was bought over by Barclaycard in September of last year. I'd had a £2,000 limit with MS for four years, pretty much maxed out most of the time with the occasional late payment. When BC took it over, it coincided with me trying to pay off all my remaining card debts after years in the red so as far as I'm concerned, I've been the model customer, paying off balances in full and never missing a month. Then this week, just after I'd paid off my Christmas expenditure (bringing my current account down lower than I'd like - but I'll survive), I had a £275 vet's bill to pay which I tried to cover with the Barclaycard only to have it declined. Much embarrassment later, I called Barclaycard who said my credit limit has been reduced to £260 automatically based on data received from Experian. I don't know what this information is yet (I've ordered a copy of my report) but I'm not behind with anything although I do have a very old (nearly six years) default sitting on there.

Regardless of this, I was very annoyed that a) they hadn't told me in advance they were reducing my limit and b) they could see I was not a bad customer yet they believed the "evidence" of the all-powerful credit reference agencies.

The way I've been treated on the phone is appalling. After calling their call centre in India, I got through to the customer retention department who said they'd call me back about amending the situation. They didn't, so I've closed the account with £140 remaining on it which they can bloody well beg for before I'll pay it up.

I've read many stories of Barclaycard doing this to people for various reasons so was the Experian story just a cover? And why are they acting like their clients are common criminals? I just can't believe the way I've been treated but on the other hand, I'm very happy to say that I now have no credit card-related debt for the first time in my life!

Eydon

jimmegee wrote: »

I'm very happy to say that I now have no credit card-related debt for the first time in my life!

Apart from the £140 sitting on the Barclaycard

Seriously though, I'd consider very carefully about not paying this until they "bloody well beg for" it. Better to pay it and at the same time lodge a complaint. I can see you're angry with Barclaycard, but not paying outstanding debts really won't help.

There seems to have been a lot of stories recently about people having their credit limits cut, by many different issuers, so I don't think it's anything personal to you.

Best advice would be, wait for your credit report to come back and then if it shows all clear challenge them. Alternatively, vote with your feet.

In either case though, pay the £140 before it gets out of control.

talana

I agree it's bad they didn't notify you in advance that they were reducing your limit, but that's all.
The fact that they decided to reduce your limit is entirely up to them, and for whatever reason they wish.
And reducing your limit (or taking it away altogether) is not treating you as a criminal!

I'm very happy to say that I now have no credit card-related debt for the first time in my life!

But you do, you have £140. I know you say you won't pay up, but you're prepared for a black mark against you for it and all the consequences of that?

MothballsWallet

As talana said - a black mark. Which, like your default, will stay on your file for 6 years.

MABLE

The reason they do not give advance notice of a decrease is because you may go out and spend up to the limit before they have a chance to reduce it. I know they regularly receive a score from the credit ref agencies and this will certainly reflect on your position with BC.

Also think very carefully about the amount outstanding. By not paying it until forced to will certainly do you know favours. You will hurt yourself far more than BC.

Remember you are only a number with them and its a numbers game.

p00hsticks

MothballsWallet wrote: »

As talana said - a black mark. Which, like your default, will stay on your file for 6 years.

Not just a black mark but non-payment fees, interest etc will soon see it grow to a lot more than £140! I agree with the others - clear the balance, close ther account and complain to them using their complaint process, escalating it if you get nowhere.

michilin27

MABLE wrote: »

The reason they do not give advance notice of a decrease is because you may go out and spend up to the limit before they have a chance to reduce it

.

i was making this point then my computer crashed!! grr! not saying i agree with it, but can understand why they do it

Bismarck

sorry...pay up and complain separately if you want to. years down the line anythingn like a black mark could make the difference between getting the mortgage you want or not and not paying straight away could end up costing you a lot more than you think.

exel1966

I think you have the general jist now in that you can't just bury your head in the sand and forget/be stubborn about your debt because there's only going to be one loser in this and it will be you. Ignore it now and it will possibly cost you ten times more in the future if the debt is passed. More importantly it will cost you more in future credit APR's, if you'd get any that is.

Barclays have the right to reduce your limit at any time, though they do have to notify you within 28 days. That notification will be officially advised via your next statement. It's annoying and frustrating and there is little that can be done except officially complain in writing, though that is unlikely to change much. There's certainley nothing uncommon about credit limit reductions amongst all card providers.

I'd pay my debt, complain and use your powers as a consumer by finding another card provider.

cos_2

Someone posted in a similar thread reminding us that it's a completely impersonal activity as far as the bank is concerned. There's no-one looking at at your account and deciding to annoy you! It helped me to think of that as it happened to me, fortunately on a card I wasn't using so I didn't have the embarrassment of a declined transaction.

Deep breath, count to ten and a wee glass of whisky is my advice.

Then complain...

carlislelass

same happened to me, I paid a lump sum then next statement showed a limit reduction by the same amount. I cut up the card and now paying it off, one less debt anyway so did me a good turn in a way.