unexpected limit decrease...

runpaulyrun

hi everyone.
this is my first venture into this forum and hope you can help.

basically i bank with tsb and have a current account with 250 overdraft and a loan and a platinum credit card all of which are up to date and only one late payment on c card. whats happened was i was on holiday in cornwall last week and was horrified to discover my card limit had been reduced from a limit of £4500 to £2200 and that left me in a pickle as i had already used £2000 on it. i have maxed this limit and paid it off in full and also paid £2000 on it bowt 6 mnths ago i just use it and pay it when i can.

can anyone help me with why they are likeley to have done this as i find them quite arrogant over the phone and the letter says yearly review and the usual checking of risk but i dont see where iam a risk i have £1400 going in salary every month.

could it be that i have complained about my risk rating being a 9 on the current account when again alls in order...sorry for rabbling on just i am so angry with them at moment..regards paul

Dylanwing

There have been a few posts about this - Basically they are going for 'responsible lending', they don't care, and you can't even get an indication of when the reductions will stop. Mine has gone from £5,850 to £200 and will probably reduce further - If you check out some of my posts you will realise that you are not alone, and watch me tranform from very annoyed to a sort of amused resignation!

runpaulyrun

many thanks will have a look at the other threads and posts...was totally stranded on hol in cornwall when i found out....rang them and they just were not bothered...past history means nowt to them...regards paul

Grade_A_Reject

You could look at it this way...although they're looking after their interests rather than yours, in a way they are doing you a favour.

Although it's inconvenient at the moment, unless you clear the balance in full each month so pay no interest, they have stopped you borrowing more money off them which you would ultimately pay interest on, so in a way they have helped you save some money.

Dylanwing

Grade A - In the long term you are right, but when stranded in Cornwall, or declined in Wilkinsons, your first thought is not 'Thanks'! It is precisely the reason that OP states, or the fact that the cardholder has paid money in for a specific purpose that I am not overly fond of these reductions.

Main warning is - Don't rely on your credit card!

jamesd

Main warning is be paranoid about making sure that the payments get made. Secondary warning is have at least a couple of independent credit cards with money available on both.

Thomas_Crown

If a bank/building society decides to reduce a customers credit limit by a considerable amount, surely it wouldn't be unreasonable to expect them to give the cusmer up to 21 days written notice of their intentions? I suggest 21 days because many people can be away for up to 14 days (or more!) during the main holiday season.

Dylanwing

Thomas - You would think that would be reasonable, but in the Banks eyes, if you give us customers any warning, we will rush off and spend whilst we have the limit. That may be true in a minority of cases, but I think most of us would be able to manage. One of my other complaints was that there is no room for negotiation, and once the Underwriters decide, they are like Gods - unchallengable, and unavailable to speak to us mere mortals.
I know where the Banks are coming from, I agree up to a point, but a bit of short-term flexibility would not go amiss. Look on the bright side, if they get the public to manage without credit cards, that's great for us and bad news for Banks in the longer term!

m00m00

I've had my halifax limit cut twice in the past 6 months. In both cases the written confirmation of this, came at least 3 weeks after the reduction had been made. Completely unacceptable.

inmypocketnottheirs

2 credit limit reductions from Barclaycard this year. Phoned them up, cleared the balance by debit card and closed the account. They don't want my business, I don't want theirs. Barclaycard do not realise that I also insure two homes, 2 cars, life insurance, travel insurance, have cash investments etc. So they will not be getting any of my business. Their loss is greater than mine.

dealer_wins

inmypocketnottheirs wrote: »

2 credit limit reductions from Barclaycard this year. Phoned them up, cleared the balance by debit card and closed the account. They don't want my business, I don't want theirs. Barclaycard do not realise that I also insure two homes, 2 cars, life insurance, travel insurance, have cash investments etc. So they will not be getting any of my business. Their loss is greater than mine.

Thats exactly what I would do, and never give them any business in the future. If enough people react like this then these greedy companies would be forced to play fair and treat customers properly.