irresponsible lending

looby75

The lender's are all up in arms about IVA's and people claiming bank charges back at the moment, so you would think that they would have at least started to get the message that it's time they started being a bit more careful how they lent money to people, right?

Last month I phoned the Halifax to tell them that I was having serious financial difficulties due to circumstances beyond my control, I told them that I wouldn't be able to pay the minimum payment on my cc that month, and spoke to quite a nasty character who basically told me there was nothing they would do to help me for at least 6 months of me missing my min payments (long story) and that I would just have to accept the charges they would put on my account etc. I offered to pay a token payment of £20 (min payment was £30 but I just didn't have that extra £10 due to having to travel to a funeral) so that's what I did over the phone. On the due date of the payment I managed to scrape together the other £10 and paid it in the branch keeping my fingers crossed it would mean I didn't get any charges for at least that month.

I am pretty much up to my limit on the cc and yesterday I was totally gobsmacked to receive a letter telling me they have upped my credit limit by £500! :eek: They have it on record I'm in bother at the moment, it's obvious from my payment record last month that there are money flow issues at the very least, yet they have just given me another £500. Just in time for Christmas too :mad:

Obviously I have no intention of using it, but it's no wonder that so many people end up in so much debt when banks and CC do things like this.

LittleL_4

Unbelievable!!!!
L
x

Storm

Can't help wondering though that as you'd said you couldn't make the minimum payment, whether your phonecall would even have been noted on your account. If you make the minimum payment each month you are viewed as a good prospect cos they get loads of interest from you, but without the hassle of missed payments.

I would get onto them asap and ask for the limit to be reduced again - that way you won't be tempted by it!

looby75

The nasty bloke I spoke to said he had put a note on my account that I had had a bereavement in the family which was why I couldn't pay but said it wouldn't stop them from adding charges to my account though, don't know if he actually did what he said he was going to though.

I phoned them this morning and asked why they had upped my credit limit, and the girl I spoke to said that yes there was a note saying I had called to tell them about the problems I was having but because I had managed to pay the min balance that had been "unflagged" (what ever that means) I asked her to reduce my credit limit back to what it had been and she said she would, after trying to talk me out of it and told me that me refusing credit might hurt my credit score! To which I replied, "Not half as badly as running up more debt that I can't afford to pay back will" LOL She also tried to get me to take payment protection and identity theft cover too. Like I can afford to pay even more right now!

After the call (a tiny) part of me thought I should have just said "sod it" and blown the lot, then paid them back £1 a week.....good job at least one of us is responsible!

makingendsmeet_2

I think you will find that credit limit increases are generated automatically and yours was probably already in hand before you phoned them to speak of your problem. Did you not remind the nasty piece of sh*te on the phone that the charges are in fact illeagel and that you will be taking legal action to recover them back.

looby75

I suppose that's a possibility, but it was over 3 weeks ago now so it will depend on how long these things take to go through the system.

LOL no I didn't remind him, I was really upset there was a lot going on at the time and some holier than thou cs worker wasn't worth my time or effort.

Needless to say I would have reclaimed any charges they added on, luckily because I paid in cash at my branch of the Halifax I just made it. I should be ok this month too because I have some Christmas money that I can use to pay some bills. It's January that's going to be the stinger

climbgirl

Credit card limit raises are usually automatic and often the credit card branch of the bank is completely seperate from the rest of the bank, different systems, different records etc. Which is why when you transfer money from your current account to your credit card at the same bank it doesn't transfer immediately.

So it's highly likely that she couldn't see the full details of the call. Especially if you say that you paid the minimum amount - this would flag that you're not in trouble so your account would be fine. It's an automated system, quirks happen.

If you like, you can request that your account limits are never changed unless you request it, they don't like it and they'll try and talk you out of it but they do it - eventually!

After reading the countless arguments on this site, I've come to the following conclusion. Yes, there is irresponsible lending. But there's irresponsible borrowing as well.

davethecue

Hi
Your post of "just in time for christmas" re the extra credit limit should be regarded as 'aiding and abetting' when the account gets into trouble(not your a/c) What I mean is how many people already teetering on the threshold of financial disaster are going to be 'guilt-tripped ' into spending extra at christmas/new year . I know personal-responsibility is a must, but at this time of year guilt at not being able to reciprocate in giving gifts etc takes over
Well done for getting them to put it back to original limits

looby75

davethecue wrote:

Hi
What I mean is how many people already teetering on the threshold of financial disaster are going to be 'guilt-tripped ' into spending extra at christmas/new year . I know personal-responsibility is a must, but at this time of year guilt at not being able to reciprocate in giving gifts etc takes over

That's partly what got me into this mess in the first place, when I was still with my soon to be ex we would often put extras on our credit cards around this time of year, his family in particular where of the mindset you give to receive and as a young couple with kids and only one income we felt pressured to keep up. It was ok while we were together but when he left I was left with some of those bills to pay and no money to pay them with. It's a visious circle, one which I was just about keeping on top of until a recent change of circumstances.

I'm not saying I've been an angel, I have bought things I shouldn't have, but when you are totally broke and your kids need a new pair of shoes/whatever and there is £ sitting waiting on your credit card you (or at least I) use them. Not an excuse I know, but an explanation as to why so many people end up out of their depth.

topsy1973

with regards to credit card companies being unsympathetic....

I contacted MBNA about 5 months ago after they had lowered my credit limit which I had already reached...I was then charged for being over the limit and as I struggled to meet the minimum payment of 200 per month it took me 4 months to get under the limit...all the time gaining over balance money from me of £30 and the monthly interest....

When I asked if they could freeze my interest or cut it down their response was very negative and got me nowhere...

Quite disappointed about this...
Sharon

looby75

can they do that? Lower your limit even though you are already up to it, then charge you for the privilege?

Have you claimed back the charges they added to your account. If not do it now, you have up to 6 years (or so I believe)