Sainsbury suddenly write in saying they are no

Deals_2

longer offer the same credit facility and now instead of a few thousand this is now down to £100 credit facilty from today..? is this legal????? my credit rating is perfect too. any help appreciated. thanks

epsilondraconis

Yes it is legal.

If your credit rating is perfect, they have likely reduced it because they don't believe they will make enough money from you. With a perfect credit rating, you should be able to obtain another credit card from another provider.

clio

Deals
so they have cut your limit?? were you using it all, if not then you'll not miss it much..

marvin

epsilondraconis wrote: »

Yes it is legal.

If your credit rating is perfect, they have likely reduced it because they don't believe they will make enough money from you. With a perfect credit rating, you should be able to obtain another credit card from another provider.

Its not really about if they will make money out of you but the total amout of potential liability if all avaiable credit is used.

Lots of finance outfits have gone through their books looking to see where they can save on having liabilities.

In some cases they have merged several cards into one and in others they have chopped allowed credit.

They have to keep an amount of cash reserves to cover the liabilities they have lower liabilities lower cash reserves required.

Also remember Sainsbury's Bank is not really Sainsbury's but HBOS now part of the Lloyds Banking Group and Lloyds have been reducing limits all over the place (my overdraft was reduced from £3000 to £800 only had it just in case I ever needed a short term boost in cash and had never used it.) because they need to use as much available cash as possible to payback the government preference shares so that the value of the business is boosted again.

Deals_2

charge interest or not until i get this sorted. i believe i was still on a 0% deal. the only money they have made wih me would have been the transfer fee really.what about all of the other credit cards...can they do the same..? can we make a list of others somewhere on here...?

marvin wrote: »

Its not really about if they will make money out of you but the total amout of potential liability if all avaiable credit is used.

Lots of finance outfits have gone through their books looking to see where they can save on having liabilities.

In some cases they have merged several cards into one and in others they have chopped allowed credit.

They have to keep an amount of cash reserves to cover the liabilities they have lower liabilities lower cash reserves required.

Also remember Sainsbury's Bank is not really Sainsbury's but HBOS now part of the Lloyds Banking Group and Lloyds have been reducing limits all over the place (my overdraft was reduced from £3000 to £800 only had it just in case I ever needed a short term boost in cash and had never used it.) because they need to use as much available cash as possible to payback the government preference shares so that the value of the business is boosted again.

marvin

So do you have a balance owing or not?
If yes have you broken any terms of the deal or not?

Deals_2

behind them reason why money has to be paid back becaue they are trying to get more money in. thanks

marvin wrote: »

So do you have a balance owing or not?
If yes have you broken any terms of the deal or not?

latecomer

If you were on a 0% deal and you haven't broken any terms then it should continue until the end of the original period. I'm guessing you do have balance as you ask about interest.

As you have a good credit rating then just apply for another card somewhere else.

Robert_Sterling_3

It happened to you. You are not a loan.