Has your Credit Card limit been reduced?

Paulgonnabedebtfree

NickX wrote: »

Firstly, sorry to hear of your wife's employment problems.

Cell, it is up to you to decide how best to handle your wife's redundancy payout, but this is not really money saving and not how I would do things.

If you are paying high APR debts, then I would definitely use the funds to pay these off because you will not make very much in interest by keeping funds in the bank, and it may impact getting JSA (Job Seeker's Allowance).

With regard to ongoing living expenses, I would get a new 0% purchases card (Tesco currently offer 12 months at 0%) and use this for everything. If you apply NOW, you would not be lying if you put your wife's current employment details on the form. Then put all expenditure on this card and pay the minimum whilst in the promotional period.

This should buy you some time for your wife to get another job.

I know there are risks in this strategy but it is what I would do.

Hope things get sorted quickly.

The bit I highlighted above. Unless things have tightened up again, I don't think JSA is impacted by having savings. JSA is determined by NI contributions and is not means tested.
As I say, I don't keep up to date with this stuff so you may well be right. However, income support and/or housing benefit IS means tested.

NickX

Paulgonnabedebtfree wrote: »

I don't think JSA is impacted by having savings. JSA is determined by NI contributions and is not means tested.

I am not an expert on JSA either and have never claimed it, however it appears there are 2 types of JSA :

- Contribution-based Jobseeker's Allowance
- Income-based Jobseeker's Allowance

The latter is definitely affected by savings :

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Employedorlookingforwork/DG_10018757

never-in-doubt

NickX wrote: »

I am not an expert on JSA either and have never claimed it, however it appears there are 2 types of JSA :

- Contribution-based Jobseeker's Allowance
- Income-based Jobseeker's Allowance

The latter is definitely affected by savings :

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Employedorlookingforwork/DG_10018757

Isn't this, put simply, just confirming that when you apply for Conts based JSA, this is based on the RITY's of previous two tax years so in essence you can claim for a maximum of 6mths at a time and no other financial info is needed - in that doesn't matter that you'r wife works or that you have £100k in the bank cos its pretty much only available to those that have worked for at least the past 2yrs.

Yea, income based is exactly that - based on family income and all levels are assessed. :beer:

magiciansgirl

magiciansgirl wrote: »

Thanks NID, yes I was going to ask about the Mastercard and try for a balance transfer from M & S as they have really offended me. I could understand if I was late, or in arrears, but their attitude just seems really unfair; and I've had the card for nearly 10 years. The APR increase letter also goes on about 'relevant factors' but they haven't checked my credit report etc. I provided income detail on my appeal letter; we shall see.

Hi NID, M & S refused to reinstate credit limit on appeal and cite all sorts of factors which are completely irrelevant eg using card to withdraw cash which I never have....so a standard letter I think. Can't decide whether to pursue further. Re HSBC I asked for a review on 9th July and am still waiting for appointment, having chased on 14th August! Frustrating...:rolleyes:

Creditbuster

Hi,

I have had similar credit limit decreases and account closure letters from several of my cards recently (Aqua, Monument, etc.) and my intention is to pay 'em back asap - not paying them any more interest. Will get by without them...

:mad:

vet8

never-in-doubt wrote: »

Isn't this, put simply, just confirming that when you apply for Conts based JSA, this is based on the RITY's of previous two tax years so in essence you can claim for a maximum of 6mths at a time and no other financial info is needed - in that doesn't matter that you'r wife works or that you have £100k in the bank cos its pretty much only available to those that have worked for at least the past 2yrs.

Yea, income based is exactly that - based on family income and all levels are assessed. :beer:

You get basic JSA, which was £53 per week a few years ago anyway, for 6 months, then after that £0. If you make a supreme effort you might get Income Based JSA which pays more for a longer period of time and will pay your mortgage interest if you qualify, BUT when my OH was made redundant 3 years ago it was a nightmare.

The benefit office people were determined to prevent him getting the higher level of JSA. You have to have under £8,000 in savings and they include absolutely everything in that, even your childrens' savings accounts! He made 7 visits to the office, filled in this dreadful form 4 times, had to provide originals of every single bank account, savings etc., we had a home visit and they kept turning him down.

I think they decided he was too educated and middle class and JSA was not for the likes of him, that was the impression I got anyway. Every time we crossed one hurdle they kept putting another in the way. The old dragon who was dealing with his case even telephoned him one day and said, "I have been sitting in my office thinking about your case and you cannot claim because of...." She was actually thinking how to stop him claimimg GGRRRR

Anyway my advise to anyone who is unfortunate enough to lose their job, is do not have any savings at all. Blow the lot, that way they give you money in barrel-loads. This is a great way to encourage people to save, spend it all and you get hand-outs, save carefully and you get nothing.

Not that I am bitter about it at all.:j

ElkyElky

vet8 wrote: »

You get basic JSA, which was £53 per week a few years ago anyway, for 6 months, then after that £0. If you make a supreme effort you might get Income Based JSA which pays more for a longer period of time and will pay your mortgage interest if you qualify, BUT when my OH was made redundant 3 years ago it was a nightmare.

The benefit office people were determined to prevent him getting the higher level of JSA. You have to have under £8,000 in savings and they include absolutely everything in that, even your childrens' savings accounts! He made 7 visits to the office, filled in this dreadful form 4 times, had to provide originals of every single bank account, savings etc., we had a home visit and they kept turning him down.

I think they decided he was too educated and middle class and JSA was not for the likes of him, that was the impression I got anyway. Every time we crossed one hurdle they kept putting another in the way. The old dragon who was dealing with his case even telephoned him one day and said, "I have been sitting in my office thinking about your case and you cannot claim because of...." She was actually thinking how to stop him claimimg GGRRRR

Anyway my advise to anyone who is unfortunate enough to lose their job, is do not have any savings at all. Blow the lot, that way they give you money in barrel-loads. This is a great way to encourage people to save, spend it all and you get hand-outs, save carefully and you get nothing.

Not that I am bitter about it at all.:j

I'm quite opinionated when it comes to topics such as JSA and other benefits.

Over the years that you work.. you pay the Government a considerable amount in taxes. When you require financial help from the Government, they make you jump through hoops for a few measly pounds.

My opinion is that, if you can, shift any savings and such into a family members accounts before claiming JSA and the likes.

Some will say this is wrong and you shouldn't do this, but think about how much you've paid in taxes.. and how much you'll get back from JSA.


If the Government wants to waste tax payers money on useless !!!!!! such as the £2million statue of the Queen mother in London or using our money to pay for MP's 2/3 houses.. screw them. Look after number one.

cosmic_girl

I've been reading this thread for a while now and have been quite shocked by the tactics that some banks have been taking in reducing credit limits - seems a tad unfair.

Anyways, postie arrived this morning with a letter re my LTSB card and they have just increased my limit by £1,000 without me asking. I've got pretty much everything with Lloyds and have never had any bother with them, maybe they are worth having a look at for peeps that have had poor treatment from other companies x x

dipalipraveen

Hi

I had a very bad experience with Barclays.
Current account provider - Barclay card
Credit Card limit before change - 10000
Credit Card balance at time - 8700
New Credit Card limit after change - 3950
Whether this happened due to the way you rrun your account - They said they reviewed my credit report and reduced the balance
Any charges incurred as a result - Card is suspended. Credit hostory is affected
Whether you were notified beforehand - No, only realised when I got my statement.

I had taken a balance transfer deal on a barclaycard. The credit limit was 10,000 and my outstanding balance was 3950. Barclays had been sending me balance transfer offers for topup on the card. I decided to transfer the balance from another card and got the balance transfer done through customer services. Everything seemed to be on track at that time

A few days later, I got a shock when I got my statement - Barclays had completed the balance transfer and then 2 days after that had reduced my credit limit. I called them repeatedly to complain about this asking them to at least keep the limit at the balance on the card and not below it. In spite of repeated requests, they refused.

I have been through the terms and conditions on the card, and although they say the following, they do not state anywhere any details of how this is worked out
quote -

Credit limit

From time to time we will work out your credit limit and tell you what it is.
unquote

I have since noticed that on the post office card they very clearly state that if they reduce the credit limit, they will never take it below the current outstanding balance.

Has anyone had similar experience? Do I have grounds to take this to the financial ombudsman? The main worry I have is that on my credit report, I am over limit although I have a squeaky clean record otherwise.:mad:

Any help will be deeply appreciated.

Thanks

Dipali

never-in-doubt

The bank cannot drop your limit to below the balance - this has to be a breach of the Banking Code surely? I'd contact the FOS asap (after final response from Barclays).

They are allowed to drop the limit whenever they want but to simply do it below the actual balance means that anytime a bank is 'skint', they could do a mass cull on limits and get rich quick with charges..... it is simply not allowed and that example explains one reason of many, why it is not allowed.

Complain in writing to barclays first and do not pay them any charges - let them build up, you'll win this. They will then revoke all charges and remove any derogatory data held with the CRA's - if they do not you complain to the ICO and if necessary obtain judgement to enforce removal.

The FOS will help only after you've wrote to Barclays and had a final response - you need to write to Barclays explaining what happened and highlight the fact it is their fault and they are not allowed to reduce limits below the actual limit just to make charges and post derogatory data against you.

Give them time to respond and do not be intimidated by them - they cannot do this.