Credit limit cut in half - Halifax Credit card

jc808

Question

Ive been a customer of halifax about 5 years, credit limit of c£6000 on a credit card (went up gradually from an original of c£1200) never had a problem paying, always paid on time etc

two months ago i paid my credit card back 6 days late (I usually pay back more than the minimum far in advance, most of the time I am at c20% credit usage on the card, my only CC) I approached the bank about this, along the lines of 'hi, can i check when this payment was due, i think i missed my date'

Now this was my cockup, I admit, but as soon as I realised I hadnt paid it, I whacked 6 times the minimum payment off it, and have been on top ever since.

Halifax' response? £12 charge and cut my credit limit in half (to what I owed on it at the time, c£2300, its now at c£1600)

I complained about both, and they refunded my 12 pounds but the complaint about the CL cut is still ongoing.

Is it fair of them to do this?

My arguement in the complaint is that I have an excellent history with them and it was an honest mistake, which was immediately rectified, and that this action is disproportionate and does not take into account my history with them

What are your thoughts? Thanks for any help

CLAPTON

get a second credit card in case Halifax further reduce you limit.

pay in full by DD then you never pay interest or forget.

bigblackdog

its the credit crunch , so they have crunched your credit !!! doh

jc808

CLAPTON wrote: »

get a second credit card in case Halifax further reduce you limit.

pay in full by DD then you never pay interest or forget.

I considered that but *ocassionally* my balance on the CC is higher than my balance + overdraft on my current account, I dont want to automate my CC payments while risking going over my limit on the current account

simpywimpy

I had this experience too with Halifax, I had a query on my card that they didnt deal with timely enough so it looked as if I had missed a payment. They sorted it out the following month but promptly cut my credit limit from 3k to £500 so I told them to close it. £500 is not worth having if you use it for hols and balance transfers.

YorkshireBoy

jc808 wrote: »

I dont want to automate my CC payments

Not even a 1% minimum payment?

£16 on a £1,600 balance. Surely that wouldn't break the bank?

jc808

YorkshireBoy wrote: »

Not even a 1% minimum payment?

£16 on a £1,600 balance. Surely that wouldn't break the bank?

I thought the poster said repay it in full every month - if i can do that i may juset automate it

paulmcerlean

they can do it if they like - it is there money albeit it seems very harsh.

chattychappy

Seems to me the banks still have their risk assessments a bit screwed up. Looks like a disproportionate reaction to me.

No doubt they will argue they have the commercial freedom to make these judgements but the direction of regulation is that banks have to be fair in the way they deal with consumers. Not sure you have a case now, but perhaps things will change in the future.

lisyloo

It does seem harsh, but you need to look at the background.
We are in a unprecedented global credit crunch.
Lenders are looking to restrict their liabilities.
This means cutting credit limits, sometimes of people with impeccable credit records who ALWAYS pay on time.
So there is a background to it that makes it likely to have happened anyway, you jsut gave them the opportunity by slipping up, but it was ALREADY a policy that wasa in place before you did anything.

So I would see it as a result of the general economic background and not against you personally.
You just made one little slip and gave them the opportunity.

So whilst it does seem harsh, it's happening to lots of people.
Yes, the economic environment is harsh right now, but that applies to everyone, not just you.

It's important to realise that credit is not a right and if there is no pre-ageed term (like you get on a mortgage or loan) then the lender can withdraw ANY time they like. So use the new knowledge wisely in future. You cannot rely on this type of credit.

jc808

lisyloo wrote: »

It does seem harsh, but you need to look at the background.
We are in a unprecedented global credit crunch.
Lenders are looking to restrict their liabilities.
This means cutting credit limits, sometimes of people with impeccable credit records who ALWAYS pay on time.
So there is a background to it that makes it likely to have happened anyway, you jsut gave them the opportunity by slipping up, but it was ALREADY a policy that wasa in place before you did anything.

So I would see it as a result of the general economic background and not against you personally.
You just made one little slip and gave them the opportunity.

So whilst it does seem harsh, it's happening to lots of people.
Yes, the economic environment is harsh right now, but that applies to everyone, not just you.

It's important to realise that credit is not a right and if there is no pre-ageed term (like you get on a mortgage or loan) then the lender can withdraw ANY time they like. So use the new knowledge wisely in future. You cannot rely on this type of credit.

Fair enough, but still think its disproportionate - if I can get another CC I may vote with my feet

Thanks