Credit Card Credit Limits

Debtfix

I recently heard an article on Radio 4 concerning unilateral increases in credit limits on credit cards. The subject was targeted on credit card companies which write to their customers telling them that their credit limit had been extended. I experienced this and rang the company to tell them I did not want my limit increased and was told that my card could be cancelled if I did not accept the increase.

My interest in this now concerns a very similar increase in credit limits that banks use to ramp up their charges. This is the case of the current account with no overdraft which is put into over draft because of a default on another account within the same company. Charges are then applied to the current account AND the defaulted account.

If the credit card companies are being told through legislation that it is now unlawful to ramp up the credit limit unilaterally could someone advise me what that legislation is? I would intend to use this against banks that put current accounts into overdraft where no overdraft facility was in place and complain to the Financial Ombudsman about this unfair practice.

The only way I am successful in reducing (normal unfair) charges is by playing the hardship card ... it does work ... and the advice comes from the FO.