Disgusted; Halifax Visa

Saker-Clive

I've just tried to make a £25 online purchase but had my Halifax Visa card declined:mad:
I had a limit of £9k and last month decided to clear my balance all but £400. I've contacted the card customer services dept. only to be told that my credit limit was reduced because 'I'm a high debt risk'!!!

I've just paid off £8k. My bug bear is that the powers that be have reduced my credit limit but I have yet to be informed by post. The letter apparently was sent out explaining all on the 23/5/07!! I asked if the letter was sent recorded only to be told it was 2nd class:mad: I asked why I wasn't contacted directly by phone....again I was told that they don't work that way.
The operator even had the cheek to say that I was now over my credit limit!!!!!!!! I asked if I hadn't paid that large sum off my balance, would they still have dropped my limit and then expected me to pay the 'excess'. I was told that they couldn't do that!
I could have gone abroad for half term with the family; then we would have been in deep doo-doo when I tried to pay for things only to have the card declined.........................................................

What steps can I take now?

RTNI

HBOS have the right to review your credit limit and reduce it at any time as set out in the credit agreement. What you were told was correct in so far as your situation (credit wise) has been assesed and based on how much credit you have to your name, earnings and possible late/missed payments on your credit file, they have decided to drop your limit.

What you were told about your large payment is also correct; they can't just drop your limit and put you overlimit and expect you to pay the £12 fee, that would just be wrong on their part. So if you had not paid that large payment off, then your limit may have been still intact. Thats not to say that they would not drop the limit by a smaller amount though.

As for next steps, you can make a complaint and await the response, but 99.9% of the time it will not be reversed unless it was an error and it was not suposed to be done in the first place.

RT.

Saker-Clive

Thanks for that and I understand that but I am at a loss as to why after 19 years with the Bank etc. I'm all of a sudden a 'high debt risk!! I've never been behind in making payments and always pay more than the minimum.

youknowwho

Saker-Clive wrote: »

Thanks for that and I understand that but I am at a loss as to why after 19 years with the Bank etc. I'm all of a sudden a 'high debt risk!! I've never been behind in making payments and always pay more than the minimum.

I agree, its not nice to have your credit limit reduced all of a sudden, when u have probably been a role customer. With respect, all this, iv been with the bank 19 yrs does not mean a thing to them, not with credit cards anyway.

Hbos, will every now and then do a search on u, check out how much "potentional debt" out there and make a decision based on that. All cc companies do this, it's nothing new i'm afraid.

You may have taken out extra credit since you have had the card, therefore extra risk to the compnay. What you have to remember is that it's their money and it's up to them who and how much they borrow you, if you don't like it then vote with your feet.

realaledrinker

Same thing happens where I work (Co-op). However, they do leave you a hidden extra 10% over the limit for 30 days (although they don't tell you!) to hopefully avoid embarrasing incidents such as what you unfortunately suffered.

Dylanwing

Check out my thread 'Beware your limit may suddenly reduce' - Some useful stuff, plus a few Bankers quoting T&C's, which seems to legitimise mucking up your life!

:beer: To realaledrinker!

wyebird

Lol Dylan. Thought you might post on this thread!

Yes they can do it, but I think it's awful that they think a 2nd class letter is an appropriate method of communication. I'm sure that they have a telephone number or at least the cost of a first class stamp!!!

Dylanwing

Be fair Wyebird, I kept it brief and just pointed to previous posts.:p

Eventually, on a quiet news day, some stereo-typical Daily Mail reader will get stranded abroad, or arrested for being unable to settle a bill, and this sharp practice will hit the headlines. Thats when the fan and smelly stuff will really collide and the 'T&C' and 'It's for your own good' arguments will fall flat.

youknowwho

wyebird wrote: »

Lol Dylan. Thought you might post on this thread!

Yes they can do it, but I think it's awful that they think a 2nd class letter is an appropriate method of communication. I'm sure that they have a telephone number or at least the cost of a first class stamp!!!

It would cost far too much money for the bank to set up a team, just to call ppl up to tell them their credit limt was reducing, and also, 90% of ppl wouldnt accept the call becuase they would answer a security question which is compulsory in accordance with DPA.

Tp post a letter is much wiser, cost effecient and is not goin to pee the customer off with phone calls, which ppl r very unreceptive to. As for the Second class part of it, its cost again, just think how much they save by putting everything second class???? I know if I had the business, I would certainly do it, reduced cost = more profit.

wyebird

Hmmmm save 10p and lose a customer for life? Maybe they could cut back on the pointless marketing mail to pay for it?

debbie42

I don't understand why they don't give people sufficient notice of the impending reduction in credit limit?