Reclaiming from CC for unasked for credit limit increases?

Iylliana

I got a cold call today from a company (Tucan Claims, Bristol) claiming they may be able to reclaim any money I had paid off my credit cards over and above my initial credit limit, if I had not agreed to the subsequent credit limit increases.

I am very sceptical, but thought I would ask here anyway. I mean, I've had these two cards for years, and the limits have been increased again and again, and I must admit that it has somewhat encouraged me into debt that I really couldn't afford. Also, due to my husband's ill health we've both been unemployed for the last 3 years and are now really struggling to meet the repayments on those and the loan and the mortgage, so any help would be greatly appreciated.

However, it seems a bit too good to be true. And heh, _of course_ they want an upfront fee of £200 (concession rate). They do bang on about the Financial Ombudsman and being registered with the Ministry of Justice, but I understand that these are regular things for businesses in this line of work and doesn't make them as special as they want it to sound.

I saw a brief mention of this in this thread (forums.moneysavingexpert.com/showthread.html?t=1793685) with the advice that it was really something a solicitor could handle for no upfront fee. What I really want to understand is whether this idea of claiming because of unasked for credit limit increases has any basis in law. I don't want to be persuing something _completely_ ridiculous.

(To the morally outraged: I know that I ran up the debt, therefore I should pay it off. I have missed very few payments over the years, and had an ever increasing balance which I moved around, so these people have made a fortune out of me. I don't feel like a victim and wouldn't normally try an end-run around something like this, but for now, at this level of poverty and ill-health if there is a chance at a small windfall I am willing to take it. Not everything is always black and white. I hope you understand.)

Angie/Iylliana

TFD_2

It will have stated in the T&C's that they may increase your credit limit. You will be told at the time you can reduce back down if you don't require it.

If you're having difficulties making repayments then there are less slimy ways to find a resolution.

Comyface

Sounds too good to be true = it probably is.

Doesn't even sound feasible to me. Good on you for getting onto their wonderful claims of being registered with the MOJ as well. They sound like a right bunch of sharks to me. Save your £200 and have a nice christmas.:)

Degenerate

An increase in credit limit does nothing to put you in debt, it's just an offer of further lending that you may use or decline of your own free will.

TFD_2

Degenerate wrote: »

An increase in credit limit does nothing to put you in debt, it's just an offer of further lending that you may use or decline of your own free will.

I think the OP was suggesting they had no free will.

Iylliana

Thanks for the guidance I thought it sounded unusual. I think I shall be passing on their wonderful offer, and continuing to overpay the balance instead.

Thank you also for the unecessary clarification that extra credit was not the thing that put me in debt. I did indeed have free will, and it is all my fault, I merely said it encouraged me into further debt. These particular 'offers of further lending' could not, in my economic situation, be considered anything close to responsible lending.

TFD_2

Iylliana wrote: »

These particular 'offers of further lending' could not, in my economic situation, be considered anything close to responsible lending.

Then you should have politely declined the increases. That's called responsible borrowing!

Iylliana

I don't think my social background or education prepared me for the idea that I could have declined the increases, but in difficult circumstances it seemed a good idea to keep them for emergencies or something. Clearly I'm not as clever as you.

TFD_2

Iylliana wrote: »

I don't think my social background or education prepared me for the idea that I could have declined the increases, but in difficult circumstances it seemed a good idea to keep them for emergencies or something. Clearly I'm not as clever as you.

Probably not, but you're equally good at patronising :cheesy:

From my experience most letters informing of a credit limit increase state that if not required to call them to restore to previous limit.

I have sympathy for people in bad situations, or where credit card companies kick people when they're down, but I don't agree with passing the buck.

If I killed somebody when driving at 150mph, should I blame Audi for allowing my car to do 150mph, or do I blame myself for driving too fast?

Iylliana

I've had the cards for nigh on ten years now. I don't think they even sent letters about credit increases in the beginning. I don't remember the older ones mentioning how to refuse the increase. I know the very recent ones have, but only because I now read every tiny detail.

I am not entirely comfortable with passing the buck either. I've said from the beginning that 'I ran up the debt, therefore I should pay it off'. However, in your hypothetical scenario a real human life is lost and you are the cause of suffering for numerous people. In mine, a large bank which hardly notices the difference loses out on a little money. And basically I feel desperate. I'm in a ridiculous financial situation, have a sick husband, a young daughter and ageing parents who cannot afford to subsidise me any longer, and I can't declare bankruptcy without them losing their house because of some crappy bit of paper they thrust at me at the age of 19 and asked me to sign. It's tipping the balance for me between passing the buck and taking a slightly unethical opportunity.

It's neither here nor there though, as the concensus seems to be that the idea is unfeasibly silly anyway.

TFD_2

Iylliana wrote: »

In mine, a large bank which hardly notices the difference loses out on a little money.

Not true - this isn't a one-off, and the huge number of people defaulting on their debts costs banks money, and this gets passed on to the rest of us.

If you're in a bad financial situation, then there are a large number of options other than bankruptcy - this is the wrong forum for sympathy, as it's full of people far far nastier and judgemental than me... but head over to http://forums.moneysavingexpert.com/forumdisplay.html?f=76 and you'll find plenty of people who are in, or have been in, a similar situation that will be pleased to offer advise.

Generally schemes such as this one you've been contacted about are a scam, or charging you for something you could have done yourself. But there are other, better ways to get help.