Credit limits changed by 90% down

Bad_Boy1022

Hi

I have a problem. I have never been over limits, paid monthly in full, had this credit card from GE for 1 year, about £3500 limit. I have paid no interest as i always paid in full


Now these idiots have decreased my credit limit from £3500 to £500 without giving me a notice or reasons.I have emailed they say it's within their T&C. I know on the 7th of Jan, Santander Group bought GE credit card opertaion.


I have checked my experian report, and nothing has changed, I do not not debts etc, and i have been in green in report for years, never exceeding overdraft or any charges, very good scoring, and I am not in distress

GE card has said they want to make sure of the csutomers not streching themselves? how did know I am streching myself or not? My record is very good, and they did did do another search on me, and I will be checking my experian record to see if they now, and I think doing a seacrh on me without my consent will be illegal too.


What I know is this.

if the T&C is do my disavantage the law says they have to give 6 weeks notice min, and they have not. I have requested their T&C again, and they are stalling. They have a breached our contract, and I will be filling a complaint with ombudsman.

For the avoidance of doubts, 2 other credit card company have increase my limit by another £2k each.


I am bloody confused, I know GE is in distressed, they are the ones who have over-stretched themselves not me.

daveboy

It's their money, not yours. They could close your account entirely if they wanted to.

Best of luck with the Ombudsman....after they've picked themselves off the floor laughing trying to read you letter, which will be poorly written probably.

Credit isn't a right. About time people realised that.

Swans1912

Bad_Boy1022 wrote: »

I am bloody confused, I know GE is in distressed, they are the ones who have over-stretched themselves not me.

They have over-stretched themselves and they are now attempting to resolve their 'mess'. This is an example of what to expect in the future, along with increased rate on credit cards.

Anyone know if these things are done by a computer or does someone manually review your credit report?

Robert_Sterling_3

I think the system should gradually move towards a situation in which each person could only have one credit card with a minimum repayment of 10% of the outstanding balance.

Debit cards should rule OK.

Also move towards One Person One Mortgage.

YorkshireBoy

iKennett wrote: »

Anyone know if these things are done by a computer or does someone manually review your credit report?

Lenders take a monthly data feed from the CRAs (which doesn't show up as a search).

It's likely the (recent?) 2 x £2K increases in available credit elsewhere have played a part in the decision to reduce the existing limit...plus the fact that the OP is not using their full £3.5K facility?

97trophy

iKennett wrote: »

Anyone know if these things are done by a computer or does someone manually review your credit report?

I have been told by a journalist that all the American lenders (MBNA, Cap One, Amex, Citi, GE) all use computers to review limits.

Swans1912

Thanks 97trophy & YorkshireBoy,

I guess it will be a good hint that you applied for to much credit... when your limits get reduced by one lender.

PROLIANT

It is about time these "stupid" high credit limits were reduced during the recession; allot of people living beyond their means, a lifestyle supported by credit.
Gone are the days when the stooze was fat and £10k + limits were given to the card tart, any business worth its salt should minimise its exposure to risk and minimise the exposure to financial ruin to its customers during a recession.

Swans1912

PROLIANT wrote: »

It is about time these "stupid" high credit limits were reduced during the recession; allot of people living beyond their means, a lifestyle supported by credit.

I agree that the high credit limits are crazy, however I should also state that credit does provide may positive things.

For example:

I bought a new car on 0% credit (I know the cost of the credit was in the cost of the car) which I will of paid off in full in June. I have looked after the car and it will last me for a good number years to come! At the time I didn't have a car and I feel the 'investment' is now paying off.

I bought a house, no chance without credit!

When I moved in I needed loads of things, from plates to a sofa! My 0% credit card for 12 months has allowed me to buy these things when I needed them! The credit did not cost me anything and I now have now credit card balances.

PROLIANT

Agreed Kennett, I have several credit products however they are used as financial tools and not a platform for a better lifestyle.
For example, I have two mail order accounts with Shop Direct, a combined available credit limit of £1400,
I use them for clothes, electrical goods, aftershave etc as I get 12 months 0% on everything, great for the old cash flow,
I also have a couple of low-limit credit cards which I use for shopping during the month keeping more cash in my bank then clearing the balance at the end of the month therefore not accruing any interest.
On paper this looks better for my cash flow and in practice it gives me access to cash in case I need it therfore not drawing cash on my Visa and being hit with interest.

withnell

PROLIANT wrote: »

It is about time these "stupid" high credit limits were reduced during the recession; allot of people living beyond their means, a lifestyle supported by credit.
Gone are the days when the stooze was fat and £10k + limits were given to the card tart, any business worth its salt should minimise its exposure to risk and minimise the exposure to financial ruin to its customers during a recession.

While at university, with no income, I managed to get a credit line of about 12k just through applying for cards with cashback offers!

It's a stupid situation when people get unsecured credit lines higher than half their annual income