Barclaycard reduced my limit

jasmin49

Ive had a barclaycard for about 10 years, always paid at least the minimum, but last month I paid off £500, Ive only got a £900 limit, and then I had a letter saying theyd reduced my limit to £400! Ive no idea why, has this happened to anyoe else?

[Deleted User]

Thay are obviously concerned about your ability to afford things, and/or other debts.

This is absolutly no bad thing and is often done by credit card companies. If you are wanting to buy a £1000 with the protection of a credit card you can still do this by preloading the card with £600

fistfullofdollars

They seem to be doing this alot atm. There are many threads on it. It has something to do with them trying to show the FSA they are a responsible lender.

If I where you I'd bin the Barclaycard and goto someone who doesnt treat you like a kid and give them your business.

Paul_Herring

has this happened to anyoe else?

To lots of people apparently. And some of those posting got replies like #2 in this thread :rolleyes:

It's Barclays reducing the amount of potential debt. I wouldn't be surprised if they reduced it to £200 if you paid £200 off. I'd start shopping around for a different card.

Dylanwing

Yes it happened to me, twice in the space of 6 Months, all the way from £5,850 to £450. I think its fair to say that I am not happy, and I have referred this to the Ombudsman, as my Bank did not handle it brilliantly, and because it will cost the b******s £400:D . It just depends how strongly you feel about it, whether you wish to pursue it all the way.

Lending criteria have tightened a lot, so getting an alternative CC may not be that easy.

Check out the thread I started, I had a lot of good replies, and you will see both sides of the argument.

[Deleted User]

Wants wrong with post number 2 you do know that if the money is not yours then you have no human right to it. It is borrowing and that is always at someone elses mercy. For all we know OPs circumstances may have changed from the original and they might be in 200 million pound of debt on 560 other credit cards, and barclays dont want to lose there money. People often omit things when they try to get there own way and or solidarity. Just look at mr amex who felt that he deserved continuing credit off amex despite the fact his guarenteed income has been zero for a long time.

If my credit limits were reduced tomorow, it wouldnt bother me one bit. Debt is not a way of life, it is to be avoided at all costs.

Paul_Herring

Yant1 wrote:

Wants wrong with post number 2

The implied presumption that in every single case of a bank lowering a CC limit, the behavior/circumstances of the card holder is to blame.

Edit: Corrected to satisfy Yant1.

The_Boss

They wrote to me offering me 0% Transfer cheques for either bank account or other cards along with a credit increase........of £60

[Deleted User]

Did I say behaviour? I thought I said circumstances. Big big diff, its nothing personal its a business arrangement.

stone7

If you had £1,000 available on a credit card, that can form a safety net. Something that can be called on, should the unexpected happen. To reduce your limit, they have cut a massive hole in your safety net and you have every right to be aggrieved. You may not have a god given right to credit, but a loyal customer should at least expect to be treated like an adult. Ditch the card. There are far better out there.

PS. Post #2 does sound ridiculous........maybe not intentional, but that's how it comes accross.

Dylanwing

The point of this forum is that it should support the consumer against sharp practice by Companies making multi-billion pound profits. The reason why we are paying between 15% & 25% interest is because we are using a revolving credit facility. If it is withdrawn as soon as you pay in, it is effectively a loan and should attract lower interest rates. The Banks claim to be reducing risk, but are happy to expose customers to the risk of making a financial commitment that cannot be fulfilled as the limit has been snatched.

Rant over!