Credit card and balance increase by bank

silverbullit

You're right, it is too good to be true and don't be mug enough to fall for it!

Beckletstar

I didn't receive a letter from them it was just shown on my statement (which I have all correspondace from my bank and credit card for the last 6 years i can check).

Also i have just spoken to a friend of mine who works for American Express and she advised that credit card compaines DON'T send out letters as standard when they increase your balance and the reason it was increased was most likely because my payments were mainly much higher than the minimum if not the whole balance.

I won't be calling or taking the companies call if they call back.

liam8282

Well I disagree, it is standard practice for credit card companies to send out letters advising you that they have increased your credit limit, and they do give you the option to either accept or reject it.

I got one only two weeks ago from Mint, telling me exactly that.

Either way, the company who said you can write your debt off are still wrong.

Also, if your friend actually works for AMEX, why didn't you ask them about any cases of people getting their credit card debts written off, due to the person not agreeing to a credit limit increase but spending the money anyway?

Surely a person that works for a credit card company and knows what letters they send out etc, would also be able to advise you on the likeliness of you being able to write off your credit card debt.

bengal-stripe

Beckletstar wrote: »

........she advised that credit card compaines DON'T send out letters as standard when they increase your balance..........

A Credit Card might increase your limit but will never increase your balance.

The card holder will increase the balance (by spending). - No spending = no balance.

ElkyElky

bengal-stripe wrote: »

A Credit Card might increase your limit but will never increase your balance.

The card holder will increase the balance (by spending). - No spending = no balance.

Not always the case.

Credit cards with an annual fee for example.

liam8282

Isn't there an Act or something out there as well which requires credit card companies to notify card holders of any significant changes to there account?

I am pretty sure they have to notify you in writing for any changes to the credit limit, changes to the interest rates etc....

I have had letters for both of the above very recently.

liam8282

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

Section 6 - 85 & 86

85.
Subscribers should give customers notice if they increase the credit limit on their credit card and explain how customers can refuse the increase.
86.
Customers can contact the subscriber to reduce their credit card limit or opt-out of the increase.

Beckletstar

Also, if your friend actually works for AMEX, why didn't you ask them about any cases of people getting their credit card debts written off, due to the person not agreeing to a credit limit increase but spending the money anyway?

Surely a person that works for a credit card company and knows what letters they send out etc, would also be able to advise you on the likeliness of you being able to write off your credit card debt.[/QUOTE]


I would have asked her before posting on here if a) she had been in the UK to ask her she only got back today from holiday so I asked at the earliest chance i had, sorry if that is not good enough!

anonymoose_3

My Barclaycard credit has been increased I only found out yesterday when I rang to check my balance. Not really an issue to me as it's the balance is being transferred shortly and the account being closed, but I haven't had any correspondence from them about it.

love2love_x

I think it makes the situation worse going to companys like that. From what I have read they advise you to stop paying causing further charges to be added only to have a much bigger debt at the end been told sorry nothing we can do, stay clear!!