COOP Visa ...unbelievable

Little_Angel

I have been a customer of them for many years, have never spent anywhere near my credit limit, always either paid off balance immediately or most of it.
Received a call this morning wanating to "negotiate" a reduction in my credit limit. It soon became clear that whatever was negotiated today, would be reduced further without any further discussion when their "automated system looked at my account" in the next few weeks!
I asked why they were phoning if this was going to be forced upon cutomers in good standing? They replied it was their policy to try & negociate a credit limit reduction. I countered there was no negotiation if they were going to automatically reduce the limit further on a few weeks/months. No answer from them.
I said what figure would they want to reduce to seeing as there was no point in me suggesting a figure if they were going to automatically reduce it further anywy.
The figure they suggested was the current balance on my card thereby preventing me spending any more!

Without going into too many details, I am a Consultant in the NHS, my mortgage is less than 50% of the value of my property, I own both of my cars with no outstanding balance, yet to the Coop I am suddenly not worth having as a CC customer.
No explanation was given as to why we could not negotiate a figure & leave it there.

I am incensed. Letter currently being drafted to CS manager. Not that that will do anyting but reduce my blood pressure.....
Am I out of order here, I know in the current climate they are tightening their belts, but surely not customers in good standing.
Any advice?
LA

Robert_Sterling_3

Their negotiation is not about your circumstances it is about their circumstances and they would like to reduce your credit limit.

Little_Angel

Of course I am fully aware of that. What irked me is that they wanted to "negotiate" a reduction today, then told me in the next sentence that it would be reduced further in a few weeks automatically without any further discussion...... so why the negotiation?
They were also explicit when I asked them what figure they would want to reduce to, & answered my current balance!!
LA

YorkshireBoy

Little_Angel wrote: »

...have never spent anywhere near my credit limit...

Received a call this morning wanating to "negotiate" a reduction in my credit limit.

That's understandable isn't it? They're simply wanting to free up some available credit (that you're not using and never have used) so they can give it someone else who *needs* it, or a new customer entirely, without overstretching themselves.

Rather than take the huff, why not move elsewhere? That's what I did when it happened to me!

I'm surprised that the person calling you would *know* your limit would be reduced again next month. Are you sure you didn't misunderstand, and what they said/meant was that limits are reviewed monthly?

Little_Angel

No they were quite explicit when they said that it would reduce further.
I am in the process of moving elsewhere, don't worry.
The fact that I never used the full balance is neither here nor there, as I, as a customer reserve the right to be able to use the full balance if & when I want.
LA

YorkshireBoy

Little_Angel wrote: »

The fact that I never used the full balance is neither here nor there, as I, as a customer reserve the right to be able to use the full balance if & when I want.

You may think you have such a right, but I'm afraid it doesn't work like that. If you read the changes section of your credit agreement you'll see they can do what they like...and you can't!

Google Basel II (and capital adequacy accord) for more details on why they're doing it.

ZAZARK

And the bank has the right to reduce your credit limit if they feel it is appropriate. Credit is never a right. They may be misguided in this case but this is nothing to get upset about. I think extending credit to those who can't afford it has been a much bigger problem and something that banks are probably trying to address.

gomer

Little_Angel wrote: »

The fact that I never used the full balance is neither here nor there,

Oh i think you'll find it is.

Degenerate

gomer wrote: »

Oh i think you'll find it is.

Indeed. An NHS consultant is certainly credit-worthy, but are they likely to be profitable?

ferry

ZAZARK wrote: »

And the bank has the right to reduce your credit limit if they feel it is appropriate. Credit is never a right. They may be misguided in this case but this is nothing to get upset about. I think extending credit to those who can't afford it has been a much bigger problem and something that banks are probably trying to address.

Hmm..so what is the point of a personal 'credit check' ?What happened to credit worthyness?We're consistently informed on this forum that everyones circumstances are completely different when taken into account.Surely in this case the bank felt it right to lend based upon this,only to find it made a mistake later to the detriment of the lender..?(see my earlier post)
Seems like the OP's financial circumstances haven't changed but the banks misfortunes recently have.....
Personally I'm getting kind of fed up with lenders with whom I have had an excellent business relationship over many years that feel that they want want their money back in a particularly difficult climate for all that haven't won the lottery recently..

I could go on,but just my thoughts...
Ferry

noah271007

ferry wrote: »

Hmm..so what is the point of a personal 'credit check' ?What happened to credit worthyness?We're consistently informed on this forum that everyones circumstances are completely different when taken into account.Surely in this case the bank felt it right to lend based upon this,only to find it made a mistake later to the detriment of the lender..?(see my earlier post)
Seems like the OP's financial circumstances haven't changed but the banks misfortunes recently have.....
Personally I'm getting kind of fed up with lenders with whom I have had an excellent business relationship over many years that feel that they want want their money back in a particularly difficult climate for all that haven't won the lottery recently..

I could go on,but just my thoughts...
Ferry

They are not a charity...they are in business to make money. I can understand your point, and i do agree what you said, but in the small print of terms and conditions (if anyone bother to read them) they can do whatever they like. Why don't you look elsewhere where you will get a better service and appreication for having you as a customer. Your CC lender obviously does not rate you as a customer. Vote your feet!