Credit card limit change

halfajack

Ok...I've gotten used to my credit card limit being increased without me being consulted and not being too fussed. However, when it happens the other way around the results are rather different. I have a Halifax credit card which had a credit limit of around £3000 (it started out about £250 six or seven years ago). I never get near the limit - I usually spend on it up to around £1000 then pay it all off, or however much I can afford after rent is taken from my pay - then i use the card for spending again (it's cheaper that using my overdraft it would seem). The other day my card was declined. I intended to phone up but things have been hectic. Anyway, about two days later I recieved a letter saying they had decided to reduce my credit limit to £1000. I realised what had happened - they must have already done it before my petrol purchase (no warning!) and the amount would have taken me over my limit. I received another letter a few days later with scary red print saying I was over my 'agreed' credit limit (by about £100) and I would be charged for going over my limit. I am utterly bewildered that they can suddenly cut my credit limit to an amount less than my balance then charge me for being over my limit!

Also, I'm a supply teacher and July has been a no pay month - I will not be paid again until the end of August and that will only be a half month pay. I had hoped to rely on my credit card more than usual in the interim but now I'm financially screwed! I'm meant to be moving house and everything - carpet cleaning of current flat (compulsory condition set by landlord for allowing my dog to stay) being an example of things I have to pay for. I'm going to phone and firstly complain about my credit limit being brought below my balance without warning and secondly ask for the credit limit to be put back up until I am next paid. Does anyone know what my chances are? Do you think i'd have a better chance if I spoke to someone in branch?

DarkConvict

They need to give you 30 days notice before changing the agreed limit.

They can only reduce a credit card limit down to the amount already purchased on the card. They can't go below it.

What has happened is as follows.

You had a limit of £2000.
You had spent £1000. (£1000 left)
They reduced the limit to £1000 (£0 left)
You spent £100 unaware of the limit change. (-£100 left) (Charges incurred)

I would ring up and complain that insufficient notice has been given for the reduction. Current purchases were still be made/in progress when they set your limit to an amount already in use on the card. They need to give 30 days notice so that any such issues do not occur.

Urgently i advise you to pay in more money to it and get it under the limit, this this prevent further charges stacking up. But do ring up to complain, if they fail to handle your complaint on the phone there and then, write in with a complaint via recorded delivery.
Only if they do not resolve it by written letter, then take it to the FOS to handle.

You may find better support for this issue on the CC board - http://forums.moneysavingexpert.com/forumdisplay.php?f=11