credit card limit reduced with no notification

The_Boss

Bumping this for the other Skycard person who had their limit slashed.

CheekyHippo

Hi All.

About three months ago I was accepted for a skycard at 0% APR (BT and purchases) with a credit limit of £3500.

Today with my spending on the card up to £1350 I receive a letter saying my credit limit had been reduced to £1400.

My available spending balance was shrunk from £2150 to £50 with no warning. Potential meaning that I could be force to spend at a ridiculous APR to cover monthly outlays at short notice! Reducing my credit limit by approx£1700 would have at least given me time to act.

I think Skycard (underwritten by barclaycard) new that they would not have made any money from me with this deal. I have the money in my bank account and the card would have been paid off before the 0% APR expired. In return I was making 1-2% cashback on my purchases and earning 4.5% on the money in the bank. While I was no risk to Skycard i was offering them no chance of profit. So they cut my credit limit down. I wonder if they would have reduced my limit had i been paying interest. Additionally what would they have done if I had balance transferred the balance at the start of the agreement??? I guess they would have at least recovered money via the balance transfer fee.

I am mildly annoyed by the action of Skycard, but am in a position where it does not have much effect on my finances. However, I can easily imagine circumstances where this type of action could be a potential problem to individuals. Hope this gives you a heads up on potential issues with stoozing and warns people that a credit limit is not for life! ! Would love to hear from anyone regarding this matter. Take care.

P.S A big Thank You to Martin And MSE ! Loving the site keep up the good work!

Julieboo

Yes this happened to me with Amex-the swines...

ex-egghead

If I were you I'd phone up and see if they can tell you why.

Credit card companys continue to check some of there customers. If one of the checks comes back with negative information, or at least, information which they see to be negative, they reduce the credit limit to you.

sdj25 - Your correct on the line on the T's & C's however it is the way in which you are reading them which is incorrect...

"AMOUNT OF CREDIT - We will tell you your credit limit when you first receive
your SkyCard. We may change your credit limit depending on our assessment of your account and will tell you about these changes by writing to you."

It doesn't mention anywhere that they'll write to you first does it? Or give you any notice. It's likely you'll get a letter within 30 days to confirm in writing.

It may be that you will need to contact Experian or Equafax and request a credit report to see if there is anything on there that shouldn't be. Take into account any new cards you may have or any changes in work situations. If you have had no change in circumstances, you may be able to appeal against the decision in writing.

intreast

its people like me i had a credit card withhsbc spend 15000 pounds and then rang them to say i lost my job they passed it on to debt collector called intrim in manchester all intreast frozzen and charges paying them back 10 p0unds a month for 1 year in the end they took back 5000 pounds as afull and final sett amount . 10.000 pounds profit u see its u lot who are paying for the like of me bad debt thats why apr gos up with out notice u see with credit cards its un /sec lending so my house was a no no if u clever u can milk it i tranfer the money nowing i was not going to pay then a penny back rang them to say i losyt my job they stopped intreast after 2 months and charges not bad for a days work i have 10 more c cards with some good limits i tell u

intreast

i have a sky card its done by barclays card with alimit of 9000 pounds on going cr i can not get all my other cards are sAfe bet its called the free money scum its legal and not breaking the law banks can not do nothing just say u over spend the banks are better now then 10 yr a go

ex-egghead

Be warned! Not a good idea!!!

Dispite what you might think, credit companies do talk to each other and work on fraud reduction together. I wouldnt even suggest doing it once never mind more than once!! You will be caught! Most creditors do not give you such a favourible deal when this happens. They probably saw you had really high balances elswhere and though...no bloody chance we're getting anything here!!!

intreast

i have a mbna with 8000 pouns amex blue 6000 pounds they all ways in crease mine every 6 months when the limit is high i go for the kill; mban i like it allows u to put money in to youy bank account the thomas cook card with a 2p/c charge tho. if u put in free money legal scum in google read a bout it or full and final sett read on

intreast

ex-egghead wrote:

Be warned! Not a good idea!!!

Dispite what you might think, credit companies do talk to each other and work on fraud reduction together. I wouldnt even suggest doing it once never mind more than once!! You will be caught! Most creditors do not give you such a favourible deal when this happens. They probably saw you had really high balances elswhere and though...no bloody chance we're getting anything here!!!

the banks have not a clue they always in crease my limit every 6 months most banks work on a in house cr check when they go to in crease limits thats what amex said in brighton ring them free money if this is the only thing i do wrong in my life i am now 24 well i think i well go to heaven

intreast

intreast wrote:

the banks have not a clue they always in crease my limit every 6 months most banks work on a in house cr check when they go to in crease limits thats what amex said in brighton ring them free money if this is the only thing i do wrong in my life i am now 24 well i think i well go to heaven

its legal fraud the banks can not do a thing its been going on for yrs now dont do it to a sec loan they take u house a way cr cards or o/ds there easy options un/ sec loans i have my onw house in essex very nice i tell u free money scam or buffet money is another term