Sainsburys Credit Suddenly Removed

barnettfair

Hi, I am really shocked to find my Sainsbury's Credit Card limit has been lowered from 5,700 to 100 overnight with no warnings and no explanation! I at first suspected some sort of fraud and have had the card blocked and a new one issued. However, despite several hours on the phone to Sainsbury's it seems that NO-ONE KNOWS (or will say?) why this was done!? I was told by sainsbury's cust. srvc. to check my credit report with a company called Call Credit which I did and the report looks absolutely fine to me but since then Sainsburys have denied that they took action based on a Call Credit report and just refuse to say WHY they have removed my credit. I am very concerned that this will adversely affect my credit rating in future. I do have 2 other credit cards but always pay the full amount off every month so am not carrying any debt and just have a normal mortgage with no problems or arrears. I have even recently cancelled a dormant credit card (in proper money saving style) so my total available credit has actuallly reduced. How is it possible that Sainsburys can do this suddenly with no warning or explanation? Does anyone else have exerience of this? I would greatly appreciate any advice going forward since I am just getting totally stonewalled by their customer (dis)service and the lending department who 'do not speak to customers'. :mad: (I guess once I get this sorted out I should cancel the card and shop at Tescos anyway!) Please, any help from all you savvy money-saving-experts would be warmly appreciated. Thanks.

Beast

My god talk about getting your knickers in a twist. Lenders are quite within their rights to limit their risks for all or just particular customers whenever they like. If you're not happy with the new limit and they won't increase it just move to another card.

bobbydrake50

You would probably be best just cancelling the card. If they won't help you with a reason there is probably nothing you can do - it is up to them what they do with their money. I imagine you won't find it too difficult to shop elsewhere as nothing bad on your credit report.

questionabout

This is a bit Weird though... While I agree it seems Sainsburys no longer want you as a customer, to reduce your credit limit to below the minimum £500 they state on their terms is very strange indeed. In fact, while its up to them to alter your credit limit, you could argue that they have broken their terms that you signed up for as it clearly states minimum credit Limit of £500 on the application.

I would write to them (with your Good credit report printouts) to advise that you are considering cancelling your card because using a £100 card is pointless and you fear you will easily be at risk at going over your credit limit should you not pay the full amount before the next statement, resulting in charges and credit report damage.

Good Luck :money:

barnettfair

Thank you each so much for your replies - just as I was considering what to do I nearly fell off my chair because a very nice customer service MANAGER (?!?) has phoned me and told me it was basically a mistake and has reinstated my original credit and put my account back to normal!!! :j It has restored my faith in human nature! (Although I'm still tempted to Tesco and its club card now) And thank you again for taking the time out to give me the benefit of your replies. Very much appreciated :T.

clairbear1000

Just as a slight aside to this, yesterday I got both a text and an email from Sainsbury's saying that they were reducing my credit limit. But they've only reduced it by £50.
Paying it down anyway but it seems such a small amount to reduce it by.