Barclay Card

adb34

My card limit has been lowered. However the new limit is under my outstanding balance on my card so they have charged me for being over my limit.

Can they do this?


I have heard that if I credit card changes your limit, you can tell them to go away and owe them nothing?

Is this true or am I barking up the wrong tree?

Aquamania

adb34 wrote: »

My card limit has been lowered. However the new limit is under my outstanding balance on my card so they have charged me for being over my limit.

Can they do this?


I have heard that if I credit card changes your limit, you can tell them to go away and owe them nothing?

Is this true or am I barking up the wrong tree?

Looks like they have done.

Why not contact them? Strange they lowered your credit limit without informing you beforehand.

Your're definitely barking ... :cool:

grumbler

adb34 wrote: »

Can they do this?

Normally CCs don't do this. Looks like some error to me.

Charging for going over the limit is definitely incorrect.

Fruit_and_Nut_Case

Aquamania wrote: »

Strange they lowered your credit limit without informing you beforehand.

This is pretty standard, actually. They don't want you rushing out and maxing your card in anticipation.

Fruit_and_Nut_Case

adb34 wrote: »

I have heard that if I credit card changes your limit, you can tell them to go away and owe them nothing?

Is this true or am I barking up the wrong tree?

Is it true that you heard it or true that you owe them nothing?

Tixy

Often companies will lower the limit to what is currently on the card.

How much above the new limit are you?
could this be a timing issue, i.e that you'd spent on the card the same day they were reviewing your limit which has caused you to be over the new limit?

Might be worth a try to call them and ask if they will consider increasing your card limit back to just above the existing debt level?

fozmcfc

We've had a few threads on the forums, where this has happened. The customer contacts the card company and they will up the limit above the balance and remove any charges.

They can reduce the limit at any time without notice, otherwise a customer may just spend right up to the limit.

When reducing the limit, it should take into account the balance and any interest likely to be applied and give a buffer above, so that the customer doesn't go above the limit or get charged for doing so.

You may even get a gesture of goodwill payment from them, for their error and quite often I've seen posts on the forum, where Barclaycard have done so.

Aquamania

Fruit_and_Nut_Case wrote: »

This is pretty standard, actually. They don't want you rushing out and maxing your card in anticipation.

I guess it may depend on the particular card provider, and even possibly the type of card account you have with them

My CCA with Barclaycard states:

11.4(a) We will give you at least 30 days' personal advance notice of all changes, unless the change is to your advantage...

Possibly to protect themselves against the scenario you suggest

24.1(c) We may prevent or limit use of your account, or end your ability to borrow more under this Agreement, if we reasonably consider it necessary: because of a significantly increased risk that you may be unable to pay

and also

24.2(h) We may refuse to approve a transaction if: we feel it necessary as a matter of responsible lending...

I've only ever had a card provider reduce my credit limit once and that was the Co-Op and I remember they gave me advance notice of such