RBS Lowering my Credit Limit? Very Annoyed.....

catweazle_2

Hi,

I have two credit cards and I have never defaulted on clearing either of them. I have mostly used the card that gives me cash back, the other one I have used several times in the last 12 months for moderate amounts, and payed the balance off immediately. This card was issued by the RBS with whom I have banked for 30+ years.

Just the other day I received a letter informing me of their intent to lower my credit limit from 3,000 to 1050....beginning with the words

'We've noticed that you haven't taken advantage of your credit limit on your RBS card for some time.......it is our policy to reduce the credit limit on accounts which may not require them.......it's our intention to reduce yours to, which we think most closely fits your credit requirements.......

How do they know what my requirements are or may be? I am so annoyed with their attitude! Time was, being a good customer meant you got an increase not a decrease.. Are they hoping I will buy something over the credit limit then owe them money ? (not likely)....doesn't that smack a little of sharp-practice? I already pay an extra annual fee for having this card and a card protection fee.

Admittedly, my letter says I can phone a keep my credit limit as it is (as long as I call before a given date) - but I feel like telling them to shape up or I'll move my accounts entirely.

Can anyone explain what's going on?

INT1

Many companies are doing this, it's pretty standard practice in the current climate.
Banks are slandered for giving higher limits to folk and allowing them to spend but also the same way for someone that's not using their account much and reducing their limits.

marksoton

catweazle wrote: »

Admittedly, my letter says I can phone a keep my credit limit as it is (as long as I call before a given date) - but I feel like telling them to shape up or I'll move my accounts entirely.

Count yourself lucky. Most people who have recently posted saying their limit is being cut had no such option.

If you haven't used most of the available credit for a long time is it really that unreasonable of the bank to take this stance.. honestly ?

_Andy_

Lenders - damned if they do, damned if they don't.
If they increase limits, they're 'irresponsible', if they decrease them it's bad service.

Mrs.S

We too have had the same letter, they are reducing our limit fron £5,000 to £500. My daughter has had her limit salshed to £100!
The irony of "your custom is important to us" seems lost, perhaps if they said get into debt ( like the RBS) and you can be our friend it may be nearer the truth.
Matt Mongoven, Head of Credit Cards..... shame on you.

jonesMUFCforever

Do you know now that banks can see what lines of credit you have?
They could decide that your total limits on all cards is too high and they have decided to ''look after their own''.

YYID

Credit file to see how many lines of credit you have, it could be considered irresponsible for a bank to leave 10k limit on a card which is only used consistently for about 1/3 of that, leaving it vulnarable to sudden spending sprees/fraud and people who have sudden changes in circumstances.

Jemma-T

As a UK tax payer I'm very pleased the state-owned and controlled RBS is doing this. We all need a little reality check with the amount of unpaid and unpayable debt and more importantly potential debt -ie super high credit limits that banks (or in this case, the tax payer) can't cover.

Look after what cards you have and treat them like gold ifyou like the service.

duggie1982

I have about 4k+ on my RBS card with just under 1k balance on it. The reason I would like my limit to stay the same is that I have the option of using it in an emergancy or if I really really wanted that expensive thing in the shop.

But its good they are giving the option to opt out but probably ask some financial details on the call you need to make to reasses your credit status

bingy_burge

catweazle wrote: »

Hi,

I have two credit cards and I have never defaulted on clearing either of them. I have mostly used the card that gives me cash back, the other one I have used several times in the last 12 months for moderate amounts, and payed the balance off immediately. This card was issued by the RBS with whom I have banked for 30+ years.

Just the other day I received a letter informing me of their intent to lower my credit limit from 3,000 to 1050....beginning with the words

'We've noticed that you haven't taken advantage of your credit limit on your RBS card for some time.......it is our policy to reduce the credit limit on accounts which may not require them.......it's our intention to reduce yours to, which we think most closely fits your credit requirements.......

How do they know what my requirements are or may be? I am so annoyed with their attitude! Time was, being a good customer meant you got an increase not a decrease.. Are they hoping I will buy something over the credit limit then owe them money ? (not likely)....doesn't that smack a little of sharp-practice? I already pay an extra annual fee for having this card and a card protection fee.

Admittedly, my letter says I can phone a keep my credit limit as it is (as long as I call before a given date) - but I feel like telling them to shape up or I'll move my accounts entirely.

Can anyone explain what's going on?

What are you chest puffing about you can keep the limit. Why not drop it tp 3k that way you have less credit available but still have an emergency buffer. Some people have cards they dont use and have thousands of unused credit can limit what other lenders are prepared to offer. Seems excellent that they have offered to lower it or not.

catweazle_2

Thanks to all who responded.

I suppose I should consider myself lucky when my parents (longer customers than me) got the same letter with no option to maintain the rate.

I suppose the reason I was narked was not only the tone of the letter, but the very fact that I should in this current climate be obliged to 'consider myself lucky'. I am just one of the many thousands who consider themselves good customers and have always banked responsibly. Then again in banking what is a 'good customer' anyway? I'm sure they'd prefer we all owe them money all the time, while giving up paltry sums in interest...

Opps I think I may have opened a bigger can-of-worms Sorry!