Irresponsible lending

buz12

Hi,
Has anyone taken Credit card companies to task for irresponsible lending? I refer to card companies increasing the limit of an account without it being requested?
This happened to me in the past as I approached a card limits they simply increased them without me requesting. This is a big contributory factor as to how I picked up a large amount of debt. I ended up borrowing from one card to pay another! This is debt I couldn't afford clearly, on one card the limit rose to £16500 when I was only earning £28,000, and others were £6,000 and £8,000 (and rising!). If card companies were acting as responsible lenders then they would have seen I was simply getting further into dept and only managing minimum payments so how could they increase the limits responsibly?
I was lucky, I landed a better paid job and had equity in my home to pay off the cards. I keep a much better account of my finances these days, I check my credit report regularly and understand much better how it works, this just adds to my frustration towards these companies. They have this information too, so why help someone dig the whole? This is not responsible lending.
I'm sure there are many other people who this applies to. What i'm asking is, is it worth complaining? I feel anything on those cards above the limits they were first issued with ought to be repaid as it only added to unmanageable debt and prolonged the inevitable when it all came to a head.
This is something i have thought about for a while so here is where I start! Has it been done before? would I be wasting my time? I do accept I must take some responsibility myself for the debt but if these companies hold licences as responsible lenders then i think they failed here also.
Thanks

Hooloovoo

buz12 wrote: »

This happened to me in the past as I approached a card limits they simply increased them without me requesting. This is a big contributory factor as to how I picked up a large amount of debt.

I didn't read any further than this, partly because without any paragraphs the lines were all starting to blur into one, but mostly because it's utter nonsense.

No. Your credit limit being raised was not a big contributory factor as to how you picked up a large amount of debt.

Your own irresponsible spending was why you picked up a large amount of debt.

Definition of limit:
noun - a restriction on the size or amount of something permissible or possible.

Definition of target:
noun - an objective or result towards which efforts are directed.

Which of those definitions do you think applies in the case of the amount of credit you have available and your use of said credit?

molerat

It is called irresponsible borrowing.

My CC limits equal about twice my income but I am not stupid enough to use it all.

callum9999

You "clearly" couldn't afford it? If that was the case, WHY ON EARTH DID YOU DO IT...

And if you can't recognise what you can and can't afford, how on earth is a credit company meant to do so? You have far more data on your spending habits and intentions that they do...

KingElvis

Pointless and very boring....discuss.

tomsco

Lol no. You could have just as eaily chosen not to spend.

buz12

Thanks, for your time and honesty!

I'll take this one on the chin..

eschaton

buz12 wrote: »

Hi,
Has anyone taken Credit card companies to task for irresponsible lending? I refer to card companies increasing the limit of an account without it being requested?
This happened to me in the past as I approached a card limits they simply increased them without me requesting. This is a big contributory factor as to how I picked up a large amount of debt. I ended up borrowing from one card to pay another! This is debt I couldn't afford clearly, on one card the limit rose to £16500 when I was only earning £28,000, and others were £6,000 and £8,000 (and rising!). If card companies were acting as responsible lenders then they would have seen I was simply getting further into dept and only managing minimum payments so how could they increase the limits responsibly?
I was lucky, I landed a better paid job and had equity in my home to pay off the cards. I keep a much better account of my finances these days, I check my credit report regularly and understand much better how it works, this just adds to my frustration towards these companies. They have this information too, so why help someone dig the whole? This is not responsible lending.
I'm sure there are many other people who this applies to. What i'm asking is, is it worth complaining? I feel anything on those cards above the limits they were first issued with ought to be repaid as it only added to unmanageable debt and prolonged the inevitable when it all came to a head.
This is something i have thought about for a while so here is where I start! Has it been done before? would I be wasting my time? I do accept I must take some responsibility myself for the debt but if these companies hold licences as responsible lenders then i think they failed here also.
Thanks

Did the card companies take you shopping? make you spend all the money? hold a gun to your head? threaten to give you a kicking if you didn't spend? was it irresponsible lending? was it irresponsible borrowing?


Your reply should be along the lines of the following.....

NO
NO
NO
NO
NO
YES

callum9999

buz12 wrote: »

Thanks, for your time and honesty!

I'll take this one on the chin..

Good to see someone come back and take the criticism on board, instead of blindly insisting they are right and everyone else is wrong/in the pockets of banks for a change!

Hooloovoo

callum9999 wrote: »

Good to see someone come back and take the criticism on board, instead of blindly insisting they are right and everyone else is wrong/in the pockets of banks for a change!

Just what I was thinking. So many newbies recently throwing their toys out of the pram because they didn't get the advice they wanted to hear. Makes a refreshing change.

opinions4u

buz12 wrote: »

Thanks, for your time and honesty!

I'll take this one on the chin..

No, you don't understand how it works.

At this point you're meant to throw your toys out of the pram, start calling other posters nasty names and refuse to accept any level of personal respinsibility!

At the same time you're meant to reiterate that your card issuing firm is in some way a sub-division of Satan himself and use the words rip-off, scam and unenforceable over and over again.

Good on you!