Claiming compensation for having a credit card limit raised without permission

frostyone

I have been contacted by phone and letter by a company who say they can claim compensation on my behalf from my credit card company. I have a legitimate claim (they say) if my credit card limit was increased without my having signed a new contract agreeing to this. They want a returnable deposit of £249 which they will hold for 14 days while persuing the claim and will take 10% of any compensation received.

As this has not had the publicity that missold PPI and endowments have had, I would like to hear if anyone else has been approached or has had a successful claim.

McKneff

They are scamming you. Full stop.

Tell them to do one,

The CC card company havent taken any of your money, yu havent lost out on anything.

And under no circumstances give them any bank details.

WestonDave

You can only in law claim compensation for a loss. Extending your credit limit does not in any meaningful way cause you to lose money without you taking further actions. You are therefore extremely unlikely to win, or see your £249 back!

amibovvered

I have seen a few posts in the past complaining about credit limits being raised and I've never really understood them - why should it matter if the limit is raised? You don't have to spend the money? I can understand that it could be problem if the limit was reduced, but not raised . . .

birkee

There is no compensation paid for stupidity, because the victim and the perpetrator are the same person.

Reesy1981

Read your credit agreement with your credit card. It will state that they decide your credit limit and can vary it when they want. So, as you have signed to that, how can you claim compo?

If you want free cash, pay me £249 and i will pay you £498 in return a day later!!!

Sceptic001

I have just had one of these calls. From a company called (at least it sounded like) Toucan. I am ex-directory but she knew my name (so it wasn't a random dial) and spoke as though she knew my credit card limit had been increased (it hasn't). When I asked her what credit card she was referring to she said my Visa credit card. When I said I don't have a Visa credit card she rang off.

Beware!

Rupert_Bear

I have always the best way to deal with these calls is to answer a question with a question. You go around in circles and the caller just ends up totally confused.

moonrakerz

amibovvered wrote: »

I have seen a few posts in the past complaining about credit limits being raised and I've never really understood them - why should it matter if the limit is raised? You don't have to spend the money?

Come on now ! Don't be so b****y sensible ...........:D:D

fozmcfc

amibovvered wrote: »

I have seen a few posts in the past complaining about credit limits being raised and I've never really understood them - why should it matter if the limit is raised? You don't have to spend the money? I can understand that it could be problem if the limit was reduced, but not raised . . .

There is one very good reason. If you have a lot of credit available to you whether used or not, it can lead to a refusal for credit elsewhere.

Many around here say that people with good credit records can get about 50% of your annual income available to them in credit.

So for instance if your annual income was £10k and you had £4k worth of credit available whether used or unused, that is under the 50% credit to income ratio that a lot of people believe lenders will lend to.

So if they then went and increased your card limit by say £1k, then you would be at your 50% credit available to income limit.

Therefore you still stand a better chance of getting more credit for say that £500 tv at 0% for 12 months deal, if they hadn't increased your limit.

Many people who have numerous credit cards which they transfer balances too to get 0% interest deals, don't close unused cards down.

Eventually someone with several cards even with a balance of £0 on them, will get refused credit because they have too much credit available to them, compared to their annual income.

As for the OP query though, not a chance they would be wasting their money.

Ironically some people pay the fee these companies want on the credit card they are trying to get compensation from, then have the cheek to try to claim back from the credit card company when they don't get the service they pay for.

Jemma-T

birkee wrote: »

There is no compensation paid for stupidity

I dunno about that!


These scam companies will always hook people's greed.