Credit limit dropped £2000 after 3 days notice???

jonvh48

Hi

Having various different cards I have never come across something like this and I am wondering if this has happened to anyone else.My credit limit was dropped by £2000 after 3 days notice.The bank claims that they have new information off my credit record but having just checked my credit record I know there is nothing on there.Cheers

jonesMUFCforever

You are borrowing their money - they can offer and reduce limits at will.

Fruit_and_Nut_Case

You're lucky to get 3 days notice. It's not uncommon to get no notice.

chattychappy

It can be an over-excitable algorithm. Halifax did this to a number of people a while back and even closed some accounts (including mine). Apparently it was an IT error and they reversed the changes on request.

Perhaps worth double checking with them that the agency they use is the one you checked. Assuming it is, the decision is probably a combination of the record and your spending pattern with them. Eg do you only pay minimums and have alot of unused limit with them? Could be a transient matter that triggered things - eg you did a balance transfer and because of timing the amount showed up on two different cards at the same time..

Hazzinho

Have you checked all 3 credit files? There will be data they are getting that has made their decision for them. Are you aware of a change of status on an account, have you recently loaded a credit card?

bayzat

It's happened to me with no notice. I only learned of it when checking my statement.

Thrugelmir

jonvh48 wrote: »

Hi

Having various different cards I have never come across something like this and I am wondering if this has happened to anyone else.My credit limit was dropped by £2000 after 3 days notice.The bank claims that they have new information off my credit record but having just checked my credit record I know there is nothing on there.Cheers

The lender has viewed your overall position and decided to reduce it's risk exposure.

jonvh48

Thank you for all the replies.I will check the other credit reference agencies too.I have not spent a lot recently on any of my cards but it has made me panic a bit because if other cards done this too I would battle to pay them off.I suppose surely the banks have to give you some leeway in this respect?

giblet10

Which bank was it? I know that in theory they can all reduce limits but I generally find there are a handful of culprit banks who are prone to doing this..it's useful to share with this forum..

jonvh48

giblet10 wrote: »

Which bank was it? I know that in theory they can all reduce limits but I generally find there are a handful of culprit banks who are prone to doing this..it's useful to share with this forum..

It was Barclaycard platinum they gave me a huge credit limit a few years ago and I have always paid on time so I am really quite baffled by there decision

GingerBob_3

It happened to me last year (AMEX). They took a couple of thousand off the credit limit and suspended cash withdrawals. It made the card virtually unusable at a stoke, given the balance I had at the time. It was my business expenses card and for a couple of months I'd paid minimum payment because I hadn't got around to filing my expenses.

Over the years I'd spent a very large amount of money on the card - maybe approaching £100k - and nearly always paid it off in full.

I kicked them into touch, so they lost an excellent customer. I'll never go back to them and I brief against them all the time (like here). In terms of assessing risk exposure they were, and probably still are, incompetent. I suspect Barclaycard are the same.