Credit limit decresed causing over limit

Jamesmprint

A few weeks back now i received a letter to inform me that my credit limit was getting increased from £500 to £600, this all happened fine and the limit was £600

I had some car repairs last week and was forced to use the card, however i have just checked and the limit has gone back down to £550 causing me to go over limit with my outstanding balance now £557

I know its only £7 but its not the point, can they just decrease my limit below its balance?

RIp Off Halifax

Many Thanks
James

JustinCredibleGillespie

I dont think they can, not without giving you 30 days notice.

Give them a call.

JCG

xx

Curr946

they can reduce the limit at any time without prior notice.

sfax

Curr946 wrote: »

they can reduce the limit at any time without prior notice.

In theory they reserve the right to but in practice the situation above is completely unreasonable. They upped the limit only weeks ago and then revised it down with no warning. I would call them and ask for it to refunded.

Are you supposed to call them every time you use the card to check that they have not reduced your limit today?!

All of my credit cards including one with Halifax have always made limit changes as part of a statement, never without warning

jo-bo

Yes but they can reduce without warning, as if they told you up front, you could potentially max it out. That's not to say I agree with what's happened.
I speak from experience with Halifax, I had a card with a very large limit that they reduced without warning, I only knew when I received a letter in the post.

sfax

jo-bo wrote: »

Yes but they can reduce without warning, as if they told you up front, you could potentially max it out. That's not to say I agree with what's happened.
I speak from experience with Halifax, I had a card with a very large limit that they reduced without warning, I only knew when I received a letter in the post.

I doubt that's the reason they do it without warning. They just do it and notify you at the same time and if you happen to have spent on it in the interim and that spending happens to have taken you over the new limit then they'll probably refund you any charge

fozmcfc

Yes the can reduce the limit without telling you first, but if it puts you below your current balance then they shouldn't charge you or put any bad markers on your credit report.

This can happen if say you spend on the card a day or two, before the limit is lowered and the purchase and limit lowered happen at the same time.

I would ring them and make sure that you will not be charged or a black mark put on your credit.

Remember though, that now you know, that you need to get under the limit ASAP and make sure any payment you make, keeps you under the limit.

A lot of people will pay the minimum, which sometimes isn't enough. If they keep your limit at £550, I would be paying at least the minimum + £7 + £10 if I was in your situation.