Charged for NOT wanting a raised limit!

Morty_007

I agree with Dollymix to be honest. It may only be "a whopping 10p" but when petrol goes up by a penny a litre, everyone complains...if Value Peanut butter or ketchup or milk went up by 10p, people would be up in arms! This is a money saving website so why not complain! Lets face it, this company is not increasing the limit altruistically! They are increasing it with the hope that the OP will forget to call them to refuse the increase and then eventually spend the extra and then pay more interest. It is shoddy practice to expect someone to spend money to reverse a decision that they have not been party to in the first place! Very unfair.

ILW

There appears to be a slightly strange parallel world out there that I never knew existed.

Stalkdog

Morty_007 wrote: »

I agree with Dollymix to be honest. It may only be "a whopping 10p" but when petrol goes up by a penny a litre, everyone complains...if Value Peanut butter or ketchup or milk went up by 10p, people would be up in arms! This is a money saving website so why not complain! Lets face it, this company is not increasing the limit altruistically! They are increasing it with the hope that the OP will forget to call them to refuse the increase and then eventually spend the extra and then pay more interest. It is shoddy practice to expect someone to spend money to reverse a decision that they have not been party to in the first place! Very unfair.

That's a silly argument...

For starters, the reason people would be "up in arms" is because those examples are commodities that you purchase regularly and in relatively large quantities, so the long term cost is greater. The 10p text is a one off charge.

Secondly, most people have to buy milk and petrol. In this case, as has been pointed out, there are several low or no cost alternatives, not least of which is simply not to use the increased limit.

At the end of the day, the bank aren't actively trying to screw the OP over, just provide him with greater financial flexibility... something many on here would be grateful for. If he can't handle that, then he's just got to suck up the 10p charge (or do one of the many cheaper/free alternatives). It certainly isn't unfair

_Persephone

They are increasing it with the hope that the OP will forget to call them to refuse the increase and then eventually spend the extra and then pay more interest. It is shoddy practice to expect someone to spend money to reverse a decision that they have not been party to in the first place! Very unfair.

I have to say I agree with this. It's no co-incidence that in the past when I have cleared large chunks of my credit card balance, the CC company has shortly written to me afterwards to increase my limit by the very same amount.

It's wrong on principle, I think OP and supporters have wrongly focussed on the amount of the charge, which the forum jackals have been quick to criticise, but the principle is all wrong.

Yes, OP could be responsible and not use the extra credit, but why are companies randomly foisting unwanted credit on people anyway? The argument that they "should be grateful they were given extra credit" is ridiculous lol.

chattychappy

It's simple. When you apply for a card you agree to a variable limit. This means they can vary it. Regs now mean you can opt out.

If you don't want to apply for a credit card with a variable limit because of the cost of opting out then don't apply for a credit card.

Dr_Cuckoo3

Phone the Financial Ombudsman free on 0800 023 4567 - they will pass your complaint to the Credit card company :idea:

KPR11

Morty_007 wrote: »

They are increasing it with the hope that the OP will forget to call them to refuse the increase and then eventually spend the extra and then pay more interest.

:eek:

What's next? When supermarkets have buy 1 get 2 free offers or BOGOF offers on something like cola, they and drinks manufacturers are out to get you - they want you to forget about moderation and binge on it in the hope that you become addicted?

I didn't realise that the ultimate responsibility for financial management was with the credit card providers! The OP will only pay more interest if they spend money that they DON'T have and thus not clearing the balance in full at the end of every month. If they do indeed end up paying any interest, it would very much be a case of "penny wise, pound foolish"!

I clearly live on a different planet!

Stalkdog

_Persephone wrote: »

The argument that they "should be grateful they were given extra credit" is ridiculous lol.

Why is it ridiculous?? For many people, the system of a variable limit works very well. You pay your bill on time and stay within your credit limit, and after a period of time the credit card company gives you access to more funds if you need it. This works particularly for people that haven't had CCs before, and will start on a very low credit limit.

Should this be stopped because a minority can't handle the extra responsibility, or don't want to pay for the cost of a text??

_Persephone

Stalkdog wrote: »

Should this be stopped because a minority can't handle the extra responsibility, or don't want to pay for the cost of a text??

I have already said I think the cost of the text thing is irrelevant.

If I want more credit, I'll request more credit, rather than the bank trying to second guess my spending habits. Let's be real - the bank aren't trying to do the consumer a favour by randomly upping credit limits - they are a business after all.

Given the number of people in debt in the country, I wouldn't say it's more than a small minority that can't handle the extra responsibility!

Enfieldian

Instead of wasting time posting on here about it why don't you try sending THEM an email?