Beware - Your Card limit may reduce suddenly

MacBoy

Excellent stuff GTD - you've nailed precisely the problem I have identified and put it into a wider context. There is definitely a 'bigger picture' change. Martin's views would indeed be welcome!

Silversurfer_3

I feel that Barclaycard is playing unfait to customers of long standing.
Interest rate went from 17.9 to 24.9 OK cope with that then pay of average 10% per month then every three months or so reduce the credit limit to just above the balance, and stop facility for drawing cash. WHY?? they say as a a "responsible lender" and "in view of current situation" I think it is because once in every 6 months I draw cash and I do not purchase with it therefore they do not collect the normal fees from retailers for providing this service so can only earn from interest rate they charge me. Never paid late fees or over the limit fees. As far as I am concerned I can live without the credit limit being higher than my balance as I make sure the 10% of balance paid I would not need to draw out. My aim is to completely pay them off and close the account and hope others will do the same. As far as I am concerned BARCLAYCARD SUCKS!!!!!

MacBoy

And it's not just 'Sharklycard', Silversurfer. I am of the opinion that this is something that is being done by quite a few companies.

Dylanwing

Trouble is that this drastic pruning will also create problems, as many people cannot deal with a sudden reduction in their facilities. Hit the overdrafts and that will affect mortgages and loans, incur heaps of penalty charges etc. Oh, and food/ travel to work, some of lifes luxuries! The knock-on effect will wreck lives, and then cause further bad debts for... The Banks!

The answer? Simple. Just offer to move unwanted card balances/ overdrafts to loan facilities, with a corresponding reduction in limits. Easy and relatively painless. Will the Banks take the sensible option? Flying Pigs spring to mind.....

MacBoy

Dylanwing

Simple. Just offer to move unwanted card balances/ overdrafts to loan facilities, with a corresponding reduction in limits.

I'm reasonably solvent these days but it wasn't always so - and at one stage that's exactly what Egg did with a balance I was struggling to cope with. They actually proactively offered me the choice too, which I think was an ethical approach I doubt you'd see with too many other companies. It worked for me.

GettingThingsDone

I'd like to be able to make overpayments though, and most loans I ask about don't offer that. Also, the interest rate on loans never seems to be the headline rate - I've just got a flyer for 6.5% apr from A&L, but I bet I won't get that rate...

Dylanwing

I paid most of the balance off, but used it again for group train tickets and a curry - Received my statement today and my limit has further reduced to £200 - But I am already over that limit, and yet a small purchase today was authorised. The whole situation is a joke, if they don't want my custom, why not just tell me?
Anyway, I get a nice bonus this pay day, so I'm going to leave a balance of about £5 and see if they reduce my limit to £50! Could be the lowest limit of all Moneysavers!
No moans, no comparing Sainsbuys to lobotomised baboons, I have much more important and serious things to worry about, and some welcome relief was today provided by Lee Trundle. Two spectacular goals.

Ray Jones. QPR. RIP.:footie:

Robflh

Hi Dylanwing

Sorry to hear that you are still being messed about.

I just had an increase in my Mint card for the fourth time. That is a total increase of £1,400 over two years.

I am due to come in to some money soon. Normally I would pay as much off one card as I could and then do balance transfers from one card to another.

However, in the light of what has been happening and the fact that the last card I would BT from would be my Amex card, that was the one I had a £3,000 reduction on, I am very reluctant to do the BT’s

Did you hear anything from the financial ombudsman?

Dylanwing

I had a bland reply about the fact that it is a commercial lending decision so they can't help - Even though I complained about the messing about, inaccurate information and general poor service, and NOT about the limit reductions. I think I've just come to the conclusion that they can do what they like, don't have to offer even basic courtesy, and there's nothing I can do about it! I might go back, but I have greater worries, as my wife is ill, and we are awaiting some blood test results - It puts the pathetic games of Sainsburys into a bit of perspective.
I'll keep you advised of their antics, and I'd be interested to hear if anyone has a lower card limit than £200 - At least I can look on this as a challenge as I eagerly await next Months statement to see what limit they have dreamed up! I think I might have to see if I now meet the criteria for Aqua/ Vanquis so I can get rid of this account.
Oh and I am still awaiting details of charges so that I can reclaim those!

HeadInSand_2

I'm currently snowballing, Barclaycard was £1250 limit and ~£900 balance, never missed a payment - been paying off chunks, paid £200 earlier this year, limit went down several hundred leaving a tiny leeway to credit limit, this has happened every month (reducing limit to just above current balance), they are desperate to keep me just under my credit limit in the hope I miss a payment and go over, so I've changed tactic now, I pay twice every month (same amount but split over 2 payments), so they reduce limit but then my 2nd payment goes in leaving me nice and clear, just £248 left to pay, gonna clear it next month and gleefully tell them where they can shove the account