Lloyds Credit card limit reduction

petechinnock

Good evening
Wife had a letter this morning from Lloyds telling her they had reduced her limit from 3200 to 1600. Letter dated 20/11 and was effective immediately. Her balance on the card being 1640. Her Limit was increased in August by LloydsTSB from 2600-3200 without her requesting an increase. She has never been in any form of problem with the card and always pays back far more than the minimum required? Her Credit record is fine.
To cap it all when she phoned Lloyds to query it they demanded she put her account back under the credit limit!!

CKhalvashi

I thought that they had to give 30 days notice, but ultimately, they've done nothing illegal.

Cash_Flow

CKhalvashi wrote: »

I thought that they had to give 30 days notice, but ultimately, they've done nothing illegal.

Only in cases where they are increasing your credit limit.

YorkshireBoy

CKhalvashi wrote: »

I thought that they had to give 30 days notice...

Only for increases. For decreases they just say "we will let you know before the change takes effect".

but ultimately, they've done nothing illegal.

They've broken the BBA Banking Code and the Lending Standards Board Lending Code.


Formal complaint time...


http://www.lloydsbank.com/contact-us.asp?WT.ac=HHW2B0512 (Click 'Complaints Procedure')

petechinnock

Yeah the response she kept getting was, As referred to in our T&C's.

jonesMUFCforever

They increased her limit without her authority but she accepted the terms if she used it.
They only have to give notice to close the account - if they did give notice how many would spend up to old limit beforehand?

Get her to check her credit files in case there is something on there - does she have any Lloyds accounts - any problems there?
Something has spooked them to do this.

petechinnock

Credit score 902
They have been no significant changes to her credit report in the last 8 months, last change being insurance quotations?

fozmcfc

Basically, the only thing Lloyds have done wrong here, is lowering the limit below the current balance.

They should raise the limit to above and give some space, so that any interest added to the balance on the next statement produced won't make it go back above the limit.

As yorkshireboy says, if they won't then a complaint should be made and I'm sure they will have to raise the limit back up, as above.

Lowering the limit itself with no notice, perfectly acceptable, as others say, people could just potential spend to the old limit if they had to give notice.

At the end of it all, it's their money, they choose who they lend to and how much they offer to people.

jonesMUFCforever

petechinnock wrote: »

Credit score 902
They have been no significant changes to her credit report in the last 8 months, last change being insurance quotations?

Credit score 902 means nothing - Experian are not lending to her are they?
She could try asking them why the limit has been reduced. They might change their minds if you ask nicely.

I am intrigued by the statement 'no significant changes to her credit report' - does this mean you have other loans, cards in the background which might have alerted Lloyds?

petechinnock

Bye Bye Lloyds, Just done Balance transfer to 0% card with a rival bank

petechinnock

A £16 phonecall to 4 different representatives kept coming back to computer issued it.

1 storecard with £120
1 loan with Lloyds

New credit limit from rival bank £6700