Halifax reduced credit limit without notice?

ElkyElky

n1ckb wrote: »

Their T&C's state (14.2) 'however we will only reduce your credit limit or cash limit if we have a good reason' - as their stated reason was false they have broken the agreement so I dont see how they could say they were quite within their rights?

"If we have a good reason" - they obviously had a reason to reduce your limit otherwise they wouldn't have done it. The reason they stated to you could have been an error on their part, but it still couldn't be considered as them breaking your agreement, unfortunately.

I think you may just be wasting your time pursuing this matter on the grounds that you think they've broken the agreement, however, you may be able to appeal the decrease and explain your situation, income etc to show you could afford to maintain a 7.5k limit.

LeeSouthEast

Have you missed a payment somewhere else? It's not necessarily that card that's causing the problem. Have you a dispute with another lender? Late paying your mobile phone? It could be anything.. only your credit report will reveal the true story... and you'll need to check all 3 really, not just Experian.

n1ckb

I have no credit issues, missed payments and have a decent salary - I'm not living beyond my means. However their actions have left me out of pocket through no fault of my own so will be pursuing this. I'll post back if I get any where - I would expect at least some sort of goodwill gesture as they are in the wrong as the letter is incorrect.

Don_R_Key-Babb

I also received a letter today regarding my Halifax card, stating that I missed a payment and dropping my limit to the next round figure
above the current balance - after my latest online payment had been applied.

Having always paid via my online (also Halifax) account, invariably a week prior to the due date, I was amazed to see this as I had seen the money go between the accounts on the 6th.

I decided to ring the call centre to find out what was going on. After hanging on for 10 minutes, and explaining the situation, it is becoming apparent to the staff there that there has been some sort of system failure and the letters have been sent out incorrectly.

I have been assured that the credit limits will be re-instated by "the team dealing with this matter", hopefully within 48 hours, and that the credit scores will not be affected... I think it would still be a good idea to check on those when the matter is resolved. I was also informed that a further letter will be sent out, apologising for the system fault.

I hope this helps.

Don

n1ckb

Thanks for that - good to know its nothing to do with me - have posted off complaint now!!

xyellowx

this has been going on for the last 18 months, if you transfered the balance maybe you had to much available credit thats probably why it got reduced or you may of just paid off a large sum ,
put your toys back in the pram and learn from i,t as for your claim best of luck you may want to add stress and sleepless nights to it, personally i wouldnt of wasted the stamp money

hullight

n1ckb wrote: »

I would expect at least some sort of goodwill gesture as they are in the wrong as the letter is incorrect.

Just be happy that they are allowing you to borrow £750 from them which they are not obliged to do.

jhorsfield30

Amazing, I have a halifax credit card and found this matter out a few days ago. After asking a friend who was with the Alliance and leicester he had the same thing with overdraft being reduced and incurring fee's.
The opinion is, that the banks can withdraw at any time and without cause being given. But surely if you put up enough of a fight, they will have to state a reson?
I was concerned about the last comment aswell,
Banks have been given money from our government and from the bank of England for the purposes of lending to the public and commercial enterprises which they haven't been doing in the past 3-4 years to any great amount.
They exist to lend money and make money from the lending.

jonesMUFCforever

The reason they needed capital was giving money out willy nilly to people who could not afford to pay it back - always two sides to an argument!

EmmaJT_2

This happened to me too, I wrote a letter to the Halifax to say what had happened, giving the dates of the letter informing me of the new reduced limit, and the fact that I had made purchases in the few days before without knowing they had decided to reduce my limit. This worked - if you want a copy of my letter you could adapt it to suit. Let me know if you want this. Emma