Has your Credit Card limit been reduced?

londonuk2008

I have read this a few times - with Barclaycard.A mate of mine had this done to him last year , he had murder getting them to sort it out and removing the data from the CRA files.

I tell you what - after reading on these threads and from friends experiences , I would not want a Barclaycard!

Paulgonnabedebtfree

never-in-doubt wrote: »

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.

Well I'm glad we agree on something anyway.

fleagle21

Current account provider: HSBC
Credit Card limit before change: 7000
Credit Card balance at time: 1300
New Credit Card limit after change: 4000
Whether this happened due to the way you run your account: Not sure - the letter stated that as a responsible lender they needed to reduce it, didnt say why!
Any charges incurred as a result: no
Whether you were notified beforehand: Yes, well in advance via letter

Really not sure the reason behind this, my balance never goes above £2000, so maybe it is genuinely because they think I don't need the amount of credit. As soon as my balance is paid, I'm getting shot of the card anyhow - got a barclaycard at 6.8%, so the hsbc at a rate of 17.9% is just ridiculous!

never-in-doubt

As a HSBC customer, request a promotional rate or you'll close account and you'll find they 'may' offer you a good rate for a year :beer:

fleagle21 wrote: »

Current account provider: HSBC
Credit Card limit before change: 7000
Credit Card balance at time: 1300
New Credit Card limit after change: 4000
Whether this happened due to the way you run your account: Not sure - the letter stated that as a responsible lender they needed to reduce it, didnt say why!
Any charges incurred as a result: no
Whether you were notified beforehand: Yes, well in advance via letter

Really not sure the reason behind this, my balance never goes above £2000, so maybe it is genuinely because they think I don't need the amount of credit. As soon as my balance is paid, I'm getting shot of the card anyhow - got a barclaycard at 6.8%, so the hsbc at a rate of 17.9% is just ridiculous!

Paulgonnabedebtfree

lindy418 wrote: »

I have had a barclaycard since i turned 18 and 25 now. First limit was 4,300 and they moved it upto 6,750.

Last 2 months i have been out of work, with my redundacy i paid 2000,00 (the whole of my payment) into the account last month taking the balance down to 4000, this month i had to get a cheap run around as my car broke so ran the card back upto 5000, so i had a payment off 1000 which i was told would go back into my credit card, the company refunding the funds transferred it to the incorrect account and put it into my main account so i tranferred over which was a day late.

Today i recieved a letter saying they had cut my limit to 4350 and i cannot draw cash(Which i dont). They said this was due to how i use my account, credit check and to have a healthly account.

I wouldnt have paid all my redundancy in my credit card if i knew this would happen, thought i had done a good thing to lower the payments but have the funds there if i need it. i have a job lined up but i wont start till 7-8 weeks time and i am unable to claim benefits because i havnt been employed for a full 3 years and my husband earns to mush but this only just covers household bills.

Just when i thought i would be ok and felt confident in getting back to work, i am so worried that if they pull my 1200 overdraft which i am 200 into now i just dont know what i will do.

They seem to be doing stuff like this without small errors in running the account.
So you have an overdraft too with £1000 left on it if needed? I don't know how other banks work things but the bank I'm with tend to give about six weeks notice of overdraft reductions. If that happens with you, at least some funds may be available until you start work. I would just suggest using the overdraft as little as you can manage until then.
Situations like this seem to be cropping up a lot. Although MSE advises against it, I am considering putting some income into savings instead of repaying debt with it. Although this makes no sense in terms of interest rates, it is no longer possible to rely on credit being available when needed as companies slash limits at the drop of a hat without warning.

philip99

Ok guys, back to the original thread. Barclaycard old limit was £15,000 down to £10,600, when the balance was 10k, and Barclaycard Visa Card was £13,850 down to £12,650.

This is despite spending over 14k on the card a month, and paying it off in full every month! I was actually paying the card completely off more frequently than monthly as I am spending more than the limit, ie the old limit was too small to be of use!

I don't think its my right to have credit from them, they run a business and good luck to them do what you need to do, but what I THINK IS COMPLETELY UNACCEPTABLE IS THE NO WARNING REMOVAL OF CREDIT. I had a bill to pay, which I thought I would use my Barclaycard to pay, so paid 4k off the card yesterday, to pay the bill today, and bingo they have taken their credit back with no warning, leaving me in the learch now.

I have been with Barclaycard for 16 years now, and they have lost a customer in me.

Unreliable credit as Barclaycard offer is no use to man nor beast as you cannot make any plans if you don't know when they will pull it in. There should be something in the agreement that says your credit limit is fixed for a year etc etc.

Barclaycard and their unreliable business really are the pits, avoid them at all costs.

moneysavingmarrow

Transfered a balance of £4300 to Halifax (on a deal after threatening to cancel card account) from Barclay card a couple of weeks ago.
Barclaycard have now reduced my limit from £6200 to £800 (was £7500 three months ago before a previous reduction) which is a tad over what I now owe them!
Needless to say, when I get the £800 in a couple of weeks to pay off Barclaycard, they are getting the gooner!

philip99

This is my concern now, if I pay large payments to the card, Barclaycard will issue a surprise attack on my credit.

I will be paying off small ammounts daily. Its like a pathetic game with Barclaycard. Why don't they just send me a letter saying we want to get your credit limit down to bla by such and such a date, and if you don't we will start pulling surprise attacks on your credit limit then.

Like I said before not knowing really how much credit you have got and are going to have makes Barclaycard very unpleasant to deal with, and very hard to plan and use the card sensibly. Its like a battle of them versus me.

Couldn't one argue that Barclaycard have actively damaged my credit rating by reducing, without warning, my credit limit to 5% above the balance, and therefore forcing me into a situation where on my experian report I am using a far higher % of my available credit. A situation I would have not put myself in, and one that makes me look bad. Thanks a bunch Barclaycard.

philip99

This sums it up:

The credit scoring models don’t take into account limits cut by creditors to minimize their own risks. So a limit cut that leaves the debtor essentially maxed out can only protect the lender and harm the debtor. This seems grossly unfair since the debtor isn’t given ample warning or notice to clear the decks and instead is caught by surprise.’

londonuk2008

Barclaycard seem the worst to be honets - or by accounts on here.I 'had' a Barclaycard for years , then they started dropping my limit.No missed payments , above min payments - and no adverse data.So paid and closed.

So if they see me as a 'risk' why do other lenders 'throw' credit at me?

Mmm I think they will end up losing a lot of decent customers.