Credit Card strange move - YOU ARE OVER YOUR LIMIT!!

Basejumper

Hi All
I have had a weird letter today from my CC company and would like to know if anyone else has received such a letter. I have a limit of £1k and make regular payments and always stay below my limit, however today a letter states that they have got information from CRAs and have subsequently reduced my limit to £850. Now I am above this but below my maximum. Does this mean that they are going to start charging me for being over my 'new' limit as i can not afford to bring it below this new figure? :mad:

stephane_2

They'll charge you an over limit fee each month that you are over...you'll be paying more interest and it will damage your credit report.
You should argue with them the fact that you make regular payment and unfair that they bring your limit below your balance. Make a formal complaint and see how it goes.

Curr946

well, you would be best calling them to find out whats going on. They cant reduce your limit and then charge you for being over it. However, they can remove any available credit and stop you spending further on it.

Basejumper

Thank you all for the advice. on the phone now as I type and have managed to get it escalated. I'm not happy. A previous catalogue account that is in dispute has shown 3 missed payments on my credit file and the underwriters have rejected my current limit thus reducing it. my cc are saying that i have no bad payments history.
Strange one

izools

As above, they can't reduce your limit below your balance and subsequently charge you for it. Take it to a formal complaint if you need to.

Regards your catalogue account dispute write to them advising they are in breach of the DPA for reporting arrears - explain to them they have a legal obligation under the DPA and a contractual obligation between them and the credit reference agencies to report an accuont in Formal Dispute as either "Query" or "Undisclosed" payment status each month.

Advise that if they fail to retrospectively correct your credit file you will report them to the ICO and may persue legal action for defamation of character - and point out the quantifiable loss their breach of DPA as made (reduction in limit, charges, etc)

Good luck! :beer:

Basejumper

IZOOLS
Thank you, I will write a letter then I will have an audit trail and as I have read, send it recorded delivery, should it go further as you described. Have you any idea of the specific area of the Data Protection Act I could quote in my further correspondence to the catalogue?
I will continue this thread when I have any additional problems.

But once again thanks:T

izools

Oh it's the fourth principle - personal data shall be accurate.

For them to report the account is in arrears is inaccurate; as the account isn't - it's being queried.

Credit reference agencies provide lenders the option of using the "Queried" status indicator for accounts under dispute.

Although... what sort of dispute are we talking about here?

Basejumper

My wife sent back some items and they weren't 'logged in' so they have billed me for them. i have since contacted them and they have sent me a form to log the numbers and items so they can check against the returns in addition i sent them the receipt at the post office as proof of despatch from me to them. i have kept a copy of that. but as yet still not resolved. I have received a letter from a DCA and I have written to them that the acc is in dispute so they have backed off. just seems to be a marker placed by the catalogue and of course the interest for late payment etc is now taking me to the upper edge of that catalogues credit limit.