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Nationwide cut limit by £2000 w/ no warning

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My partner logged into his Nationwide accounts today and saw that his credit card limit had been cut to £750 down from £2800. This was with no warning, though Nationwide claims they've sent a letter, which hasn't been received.

He called up Nationwide and they told him that it was because they had re-evaluated and 'doubted his ability to keep up with repayments due to information on his Experian credit report'.

He pays off the balance in full every month, and has for the entire time he's had the card (since January), has no other cards and no other debt other than student loan. He checked his Experian report and all accounts are satisfactory (he's never had a late payment on anything, ever).

I'm thinking that the CSR he spoke to was lying about the credit report and Nationwide was simply tired of not making any money off him and cut it in the hopes he would go over it and they could charge fees.

Nationwide says they will initiate an appeal, which will take up to 72 hours, but didn't give him any indication of what the appeal entails or how he would hear back.

Can anyone explain what is going on here and recommend a way to get the limit back up? He never really uses more than £750, and averages even less, a month, but there are occasional big expenses he uses the card for. He's been with Nationwide for over 10 years, has his current, savings and ISA accounts with them and is seriously considering closing all of these and moving banks if they don't re-up his limit.

Comments

  • cifpower
    cifpower Posts: 6,502 Forumite
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    If he never really uses more than £750 this is probably why they reduced his balance to this level
  • izools
    izools Posts: 7,513 Forumite
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    cifpower wrote: »
    If he never really uses more than £750 this is probably why they reduced his balance to this level

    Exactly. They don't want that £2050 on their balance sheet allocated to a customer that never uses it. They'd rather have it allocated to a customer who will use it more regularly and not clear it in full each month.

    Nothing personal, just business :o
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • lmkm
    lmkm Posts: 5 Forumite
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    izools wrote: »
    Exactly. They don't want that £2050 on their balance sheet allocated to a customer that never uses it. They'd rather have it allocated to a customer who will use it more regularly and not clear it in full each month.

    Nothing personal, just business :o

    I suspected this, but why did the CSR tell him explicitly that it had to do with information on his Experian Credit report? Was this just a total lie to get him to stop asking questions?
  • izools
    izools Posts: 7,513 Forumite
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    lmkm wrote: »
    I suspected this, but why did the CSR tell him explicitly that it had to do with information on his Experian Credit report? Was this just a total lie to get him to stop asking questions?

    They've been trained to say it that's all. None of the CSRs know the real reason, they just spout the company phrase book.
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • DarkFallout
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    lmkm wrote: »
    I suspected this, but why did the CSR tell him explicitly that it had to do with information on his Experian Credit report? Was this just a total lie to get him to stop asking questions?

    It is just a phrase to dilute responsibility for the decisions. Does not really mean anything.
  • chattychappy
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    FWIW My NW Gold visa limit is £7500. The balance hasn't been over £200 for a couple of years. No reduction yet.
  • Chris2000
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    People have posted stories of credit limit reductions in these forums for years. One thing is clear, it does not mean the same lender is about to reduce everyone else's credit limit.
  • lmkm
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    Thanks for the information, all. Nationwide quietly raised his credit limit back up. The appeal probably turned up his other accounts and they decided !!!!ing him off wasn't worth it.

    I don't doubt that if he had solely been a credit card customer they would have left him out to dry!
  • chattychappy
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    Seems to me these things get done in batch runs. It may even have been a mistake - I recall there was a recent thread where someone had a reduction on their Halifax card and apparently it was a "mistake" which affected alot of people.

    But, whatever, nice to know it was changed. Despite their "quiet" approach, good you made some noise here!
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