Lloyds TSb Llimits - No Wonder they nearly went bust.

udydudy

No Wonder lloyds tsb nearly went bust!!!. their credit card department recently lowered my limit by £250(5%) of then limit. Received a letter a few days after the reduction informing me that they had reviewed my credit status and due to "Responsible Lending" criteria they have lowered my limit by £250.

At that time i wondered whether they had gone looney!! as I had a current account with them which had regular inflows and a regular saver account with £2500 in it.

Now three months later after the regular saver matured and i moved it away from them(which means they see £3000 less of my money) I receieve a letter saying they have increased my limit by£700!!.

What sense does that make??? If a risk assesor thinks that a individual with money in his savings account is a greater risk than a individual without any savings then obviously they ought to go bust!!.:rolleyes::rolleyes::rolleyes::rolleyes:

Not that I care either way I will be clsoing the account once the promo period is over!!....:j:j:j unless the make an offer i cannot refuse....;);););)

jonesMUFCforever

Card services can't see other accounts you hold.

Ritchie74

Did you regularly hold a balance above £250? If not then there's your answer, you didn't need a high limit. If you did carry high balances, have you checked your credit file to have a look at why they viewed you as med/high risk?

choc_mouse

Not really sure what OP is getting at but out of the 4 cc's I have, LTSB (Airmiles Duo) have been the strictest on my limits and limit increases. Perhaps it's just sensible banking.

I use them as my main card to get the airmiles but it has the lowest limit on it (£2.5k) so every other month I find I'm using more than 75% of this limit (pay a lot of company travel with it). Have only just been able to increase the limit by a few hundred pounds as opposed to a few thousand pounds that I could request with my other cards. I don't need the high limits but it's comforting to know I have that emergency buffer in case I get caught out.

Not complaining, just an observation.

M_Thomson

udydudy wrote: »

No Wonder lloyds tsb nearly went bust!!!. their credit card department recently lowered my limit by £250(5%) of then limit. Received a letter a few days after the reduction informing me that they had reviewed my credit status and due to "Responsible Lending" criteria they have lowered my limit by £250.

At that time i wondered whether they had gone looney!! as I had a current account with them which had regular inflows and a regular saver account with £2500 in it.

Now three months later after the regular saver matured and i moved it away from them(which means they see £3000 less of my money) I receieve a letter saying they have increased my limit by£700!!.

What sense does that make??? If a risk assesor thinks that a individual with money in his savings account is a greater risk than a individual without any savings then obviously they ought to go bust!!.:rolleyes::rolleyes::rolleyes::rolleyes:

Not that I care either way I will be clsoing the account once the promo period is over!!....:j:j:j unless the make an offer i cannot refuse....;);););)

Correction Lloyds TSB never went bust. HBOS which Lloyds took over almost did.

CannyJock

udydudy wrote: »

No Wonder lloyds tsb nearly went bust!!!. their credit card department recently lowered my limit by £250(5%) of then limit.

I had no idea that their continued success depended on the merchant fees generated by your extra £250 of spending

Good luck getting a repeat offer from LTSB. YorkshireBoy's had some success with them in the past, but don't think there's been a sniff of any repeats for a long time. Be good to hear how you get on with them all the same.

System

M_Thomson wrote: »

Correction Lloyds TSB never went bust. HBOS which Lloyds took over almost did.

Lloyds required bailout funds to a similar level to HBOS if the takeover didn't proceed. Part of the reason that the government allowed it to proceed was that the combined bailout (of the enlarged group) was lower than for 2 independent companies.

HSBC was the only major bank that didn't.
Barclays got theirs from the middle east rather than the UK government.

ERICS_MUM

overdraft and credit card limits cost the banks money in terms of balance sheet and collateral costs. If the limits are not used, they don't get any income from them to offset the costs. So if you don't use it you lose it.

Banks are more likely now to review limits down and up more frequently, dependant on the shape of their balance sheets.


Linda :T

paulharding150

udydudy wrote: »

No Wonder lloyds tsb nearly went bust!!!.

No they didn't.

If you don't know anything or don't understand the current economic situation, it's best to keep your nose out!

Xbigman

I hate to disagree but HBOS nearly went bust and were bought out by Lloyds. Then Lloyds nearly went bust and were bailed out by the govt.
Regards




X

Chrysalis

udydudy wrote: »

No Wonder lloyds tsb nearly went bust!!!. their credit card department recently lowered my limit by £250(5%) of then limit. Received a letter a few days after the reduction informing me that they had reviewed my credit status and due to "Responsible Lending" criteria they have lowered my limit by £250.

At that time i wondered whether they had gone looney!! as I had a current account with them which had regular inflows and a regular saver account with £2500 in it.

Now three months later after the regular saver matured and i moved it away from them(which means they see £3000 less of my money) I receieve a letter saying they have increased my limit by£700!!.

What sense does that make??? If a risk assesor thinks that a individual with money in his savings account is a greater risk than a individual without any savings then obviously they ought to go bust!!.:rolleyes::rolleyes::rolleyes::rolleyes:

Not that I care either way I will be clsoing the account once the promo period is over!!....:j:j:j unless the make an offer i cannot refuse....;);););)

Banks are greedy, they probably assess on profit potential rather than risk now days.

Maybe the typical person with savings doesnt make much interest payments on cards so as such they dont provide the credit. I can only guess tho as their criteria is a closely guarded secret.