Barclaycard reduced our credit limit without telling us

Hue-Jarse

Hi moneysavers

Today we recieved our barclay card statment, and find our credit limit has been reduced from £500 to £350 without telling us. This means that we had a availible credit amount of just £21 instead of around £170 which we understood was available. Since this card is used to pay sky and two other small monthly bills this would have taken us over our limit, and would incur charges. The cynical among'st us would say that this has been done for this very reason just as people are starting to fight these charges and reclaim much of these unfair cost. So my question is, is this normal since there has never been a missed or late payment of this account in the three or four years we have had this card.

Rgards Hue Jarse ...

[Deleted User]

Hue-Jarse wrote:

Hi moneysavers

Today we recieved our barclay card statment, and find our credit limit has been reduced from £500 to £350 without telling us. This means that we had a availible credit amount of just £21 instead of around £170 which we understood was available. Since this card is used to pay sky and two other small monthly bills this would have taken us over our limit, and would incur charges. The cynical among'st us would say that this has been done for this very reason just as people are starting to fight these charges and reclaim much of these unfair cost. So my question is, is this normal since there has never been a missed or late payment of this account in the three or four years we have had this card.

Rgards Hue Jarse ...

Cahoot recently reduced my flexible loan limit by about half and hiked the rate up a few percent as well !

Apparently, its to do with their ethical borrowing policy! Thing is though I've never missed a payment and only use it occasionally.

Perhaps I'm not a good enough interest payer !

regularsaver1

Hue-Jarse - by providing you with statement that staes your new credit they could say that is informing you ???

Call_Centre_Monkey

It will be part of their responsible lending program. If you're showing signs of financial difficulty, or your credit rating has decreased this is often the reason credit limits are reduced.

And at the end of the day it's their money, not yours - it's only fair they can reduce it at any time.

Hue-Jarse

regularsaver1 wrote:

Hue-Jarse - by providing you with statement that staes your new credit they could say that is informing you ???

Mmm let me get what your saying right barclaycard knowing our use of this card change the rules, which will force us to incur over limt cost and you say this is OK. Do you have a reason to support this type of action. We have never had this card close to the limit missed a payment or been late. This does seem like an atempt to squeez more money from us. but will only result in a loss to them as we will move the debt to another card and close the account. I still cannot believe you support them not informing us of this change in writing other than on our monthly statment. If this card had been used in the last couple of days while this statment was in the post we would be over the new limit and incur charges, yet you say this right.

Regards HJ

Call_Centre_Monkey

Hue-Jarse wrote:

Mmm let me get what your saying right barclaycard knowing our use of this card change the rules, which will force us to incur over limt cost and you say this is OK. Do you have a reason to support this type of action. We have never had this card close to the limit missed a payment or been late. This does seem like an atempt to squeez more money from us. but will only result in a loss to them as we will move the debt to another card and close the account. I still cannot believe you support them not informing us of this change in writing other than on our monthly statment. If this card had been used in the last couple of days while this statment was in the post we would be over the new limit and incur charges, yet you say this right.

Regards HJ

Either way, there must be a reason for them reducing the limit. You mentioned earlier you're angry because your Sky Subscription etc will take you over the limit now. Well if that's the case, cancel it - it's a luxury

regularsaver1

Hue-Jarse - did i say i supported them? i am stating what could be said by them in response - banks tactics ya know

Hue-Jarse

Call_Centre_Monkey wrote:

It will be part of their responsible lending program. If you're showing signs of financial difficulty, or your credit rating has decreased this is often the reason credit limits are reduced.

And at the end of the day it's their money, not yours - it's only fair they can reduce it at any time.

Whilst i agree it is there money i do feel they should have informed us that from a certain date this would take effect. They would be quick enough to contact us should we have missed payments. I only expect them to be fair nothing more is that to much to ask ?.

Regards HJ ...

regularsaver1

regularsaver1 wrote:

Hue-Jarse - by providing you with statement that staes your new credit they could say that is informing you ???

where is the above quote did i say the bank was right????????? i was simply saying something that they MAY say , jeez

ring them and ask??

sky on credit?? - 1st time i have heard of that

Hue-Jarse

regularsaver1 wrote:

where is the above quote did i say the bank was right????????? i was simply saying something that they MAY say , jeez

ring them and ask??

sky on credit?? - 1st time i have heard of that

Mmm never thought about that sky on credit. the card is used to pay the regular monthly bill then paid off month end but as you piont i will change this now.

Regards Hue J ....

regularsaver1

yeah direct debit probabaly be easier seeing as you'd have to inform them of new c/card details should you change anyhow