Can my card company reduce my limit without warning?

KVHannah

My credit card limit was £2500. I had spent £1780 and always make regular payments - in the last month I have made payments totalling £500. When attempting to use my card yesterday, however, it was declined, so I can home and checked my internet banking - they have reduced my limit to £1800 WITHOUT taking into account the pending transactions (which took the total to £1922) and then proceeded to charge me a £12.00 over limit fee. Although internet banking says that a statement was sent out on 01/10/07 (I assume the postal strikes are to blame for it's non-arrival) shouldn't the bank have contacted me first to let me know they were reducing my credit limit and given me a reason why?

missk_ensington

You would expect so! They seem to be cutting a lot of credit limits at the moment (maybe its the affect of the credit crisis). I would say that if you demanded you £12 back, they would probably reimburse it, although I don't doubt you'll need to write a lengthy letter and all that palava!

Legally, I don't know where they stand but they did it to me a while ago. Thing is, putting postal strikes aside, they send the letter out on the day they cut it anyway so even without the strikes, you wouldn;t know about it until at least 1-2 days after they've done it. It should be illegal if it isn't already

demon8ball

I had virtually the same thing happen to me with Barclaycard. You would have thought that they would give you advance notice and certainly not overcharge your or allow pending payments to go through.

Terrible practise IMO really lacks any customers service and makes you realise how unimportant the card companies can think you are. Have kept my card on but it gave me a kick up the backside and i give BC little chance to make money from me anymore.

headcoat

I have had the same ting twice with Barclaycard, can't wait to clear it and close the account

Balls_Of_Steel

KVHannah wrote: »

My credit card limit was £2500. I had spent £1780 and always make regular payments - in the last month I have made payments totalling £500. When attempting to use my card yesterday, however, it was declined, so I can home and checked my internet banking - they have reduced my limit to £1800 WITHOUT taking into account the pending transactions (which took the total to £1922) and then proceeded to charge me a £12.00 over limit fee. Although internet banking says that a statement was sent out on 01/10/07 (I assume the postal strikes are to blame for it's non-arrival) shouldn't the bank have contacted me first to let me know they were reducing my credit limit and given me a reason why?

Have a read of this thread http://forums.moneysavingexpert.com/showthread.html?t=458898

nomoneytoday

The reduced balance is fair enough, but the £12 charge isn't. I would phone and ask for it back, and then shop elsewhere for someone who wants your custom

Dylanwing

In my case, the £12 was refunded, but with a warning about future conduct - I did point out my lack of psychic powers and that I will only expect to pay if I go over my known limit. The other point is the credit file, I have written to Sainsburys requesting that they confirm that I don't get a black mark of any sort for my error in exceeding a limit that I was unaware of!

michilin27

there is a reason a company will reduce your limit and if they send advance notice ie we will be reducing your limit within 7 days then there is nothing to stop you maxing your limit within the 7 days and therefore they would no longer be able to enforce the credit limit reduction

not an ideal situation however for the consumer

m00m00

charges for 'overlimits' don't show on your credit file, only missed payments do.

jamalfatty

m00m00 wrote: »

charges for 'overlimits' don't show on your credit file, only missed payments do.

Partly true, while markers for being overlimit dont appear, your balance and limit does so easy for a lender to spot if someone is not running their account properly