Beware - Your Card limit may reduce suddenly

Dylanwing

So I'm afraid you're probably wasting your time pursuing it...

As long as I'm wasting plenty of their time & resources as well, I don't mind that! I am going through the correct procedures, and I know that they are pretty uncompromising, so I am not that hopeful, but you never know.
Thanks to you all for your help and honesty. It has been much appreciated, and a great help.

Luggworm

jamalfatty wrote: »

Your making an awful lot of assumptions about me. I by any means off myself and have it coming out of my ears so I have experienced these 'moving the goats' all to myself.

Anybody can snip posts to make them sound like the daftest thing ever posted (Post #11 quoted in #15!)

jamalfatty wrote: »

If people dont want to debate subjects, from all points of view, then why bother posting in first place?

Exactly.

thumshie

Luggworm - I think you'll find post 11 was edited 31hours after original posting, which is when the word not was added.. Post 15 was done 2hrs after the original post, almost a whole day before post 11 was re-edited.

Tribulation

I can understand both sides of this discussion but,

If someone has 10 credit cards all maxed out, but at the same time are making all their payments on time, not being late for anything, personally I don't think the CC companies are doing them any favours by reducing their limit in this way.

I understand that it's pointless a CC company informing someone that if they pay off their balance it will be reduced, but there's nothing to stop a CC company informing a customer that the CC company has taken another look at the customers credit history and has decided to reduce their limit by x amount each month. For example, if you pay £200 min payment each month which includes £80 interest, instead of having £120 left to spend, you would only have £80 (or whatever). This way over time the limit would naturally decrease.

I think it's irresponsible to do it in the way described in the above posts. Anything could be going on. Someone might have been given a gift of £2000 by say their parents for something like a holiday. They decide to purchase the holiday on-line, so pay the £2000 off of their card to give them the funds to do so, only to find they've had their balance reduced and end up having to explain to their parents (or whoever) sorry, the money you gave me to spend exclusively on a holiday (or whatever) has been used to pay off my credit card.

Robflh

Hi Dylanwing
I thought you might like to know that a few weeks ago I received a letter from American Express. They have reduced my limit by £3,000 and have left me with very little available credit.

Unfortunately, I am in the latter stages of renovating my home and I no longer have enough money to finish the renovation project. If they had done it a week or two sooner, they would have been able to reduce it by even more.

Then I would not have had enough money to get the kitchen to a point where it is a usable kitchen. That is not a finished kitchen just a usable kitchen.

Dylanwing

Hi Rob
Sorry to hear that you have had the same as me, you have my full sympathies. Last week, we found out that my son needs a school blazer this week, (long story, in a school DVD project, planned to buy it from bonus in August), so we have had to cash a cheque at the Money Shop to buy it.
I am still waiting for a reply to my letter adressed to the Chief Executive!

dazed

Have you both obtained a credit report to check your credit history? And if your Annual salary and total 'potential' credit is not in a repayable zone then this will be a factor also.

Dylanwing

It may well be something like that, although as Sainsburys have no details of my current employment or income, it would be interesting to see how they calculate that. Even so, it is an existing facility that has been reasonably well conducted over a number of years, so my history with the account should not be a worry. As with Rob, if they were just a bit more flexible and allowed some negotiation so that the limit could reduce, and the customer is not inconvenienced, it would benefit both parties.

If Sainsburys don't compromise, the charge reclaiming procedure starts - It won't be a lot, but it will waste a whole heap of their time! And I have still not had my letter informing me of the decrease!

TAG

DH has had his limit reduced, again, by Morgan Stanley. Down to £685 now from £1030.

The letter which arrived after the reduction, appears to point to him getting a copy of his credit file. Which we shall do. Not missed any payments on anything though and always paid more than the mimnimum every month.

Just really annoying that they never tell you before they do it. Thats twice now. Card will go as soon as it's paid off.

Robflh

Hi dazed & TAG
In my letter from Amex they told me to contact Equifax and Experian, the two credit agencies that they use. As I subscribe to Experian’s Credit Expert service, I can check my credit report anytime I wish to and I have done just that.

I have no missed or late payments and I have never gone over my limit on any of the CC’s that I have. Just to make sure Equifax does not have anything different, I paid my £2 and got a copy of my credit report from them. They both have the same information.

A couple of years ago I paid to find out what my credit rating is (824 out of 1000) which I thought was quite good but apparently that is a medium score. I had checked this again two months ago and it is still the same.

In the last couple of years, I have acquired a mint card, which currently has a limit of £3,300. At first, I thought this was the reason why Amex had reduced my limit by £3000.

However, since I acquired the Amex card my RBS Advanta card has died, due to a lack of use. It had a limit of £10,000. Therefore, since I acquired my Amex card I have lost £10,000 of available credit and gained £3,300. That is still a reduction in available credit of £6,700. As for my status, that has not changed in the last twelve years.