Unsolicited Credit Card Limit Increases

Nebulous2

wiseonesomeofthetime wrote: »

WE may understand our methods, but how many people here leave a flowchart or guidance for their loved ones to direct them through WHAT is WHERE for WHICH pot??

I digress. Apologies.

Not a flowchart, or guidance, but a spreadsheet updated monthly, with the names of all the companies and debit and credit balances for each product.

takman

macloud wrote: »

These have recently been in the news but I cannot see any comment on here. May have missed it.

Anyway, I got an unexpected letter from my CC company offering to increase my credit limit from £8,500 to £9,800. I had not asked for this and I certainly don't need it. Bit irritated really as we hear constantly of folks getting into debt easily and, with difficulty, extricating themselves from the same. Dodgy CC tactics, I reckon.

Anybody else got this type of 'offer' ? How did you deal with it ?

I rewarded my CC company with a request to reduce my credit limit from £8,500 to £6,000 ! They complied without comment. I doubt they will try that one again.

Why would a limit increase irritate you?. Plus it was pretty silly to reduce the limit because this could be seen as a negative if you apply for further credit as this is a sign either the card company or you have a problem with managing credit. Just because you have a bigger limit doesn't mean you need to use it all.

takman

antrobus wrote: »

Providers have agreed to a voluntary code being developed by the Financial Conduct Authority (FCA), the City regulator, which would see restrictions and choice on credit limits.
They will start asking new customers for their consent before raising limits, and give them the option to carry on receiving uninvited increases. Existing customers will be given the option to ask their lender to require their consent

Credit card limits 'need control'
http://www.bbc.co.uk/news/business-42009118

People need to take more responsibility for their actions and act like responsible adults when managing their finances. Putting more and more restrictions on lending only ends up disadvantaging people who use credit responsibly. While the people who can't manage their finances will still have problems as it doesn't solve the root cause.

[Deleted User]

takman wrote: »

Why would a limit increase irritate you?

Maybe the OP was planning on applying for some large borrowing, and a CC limit increase could interfere with that.

eco_warrior

If that irritates you I’d hate to see what really annoys you

StopIt

takman wrote: »

People need to take more responsibility for their actions and act like responsible adults when managing their gambling. Putting more and more restrictions on gambling only ends up disadvantaging people who gamble responsibly. While the people who can't manage their gambling will still have problems as it doesn't solve the root cause.

Note how this defence is used whenever any regulations appear and is a non sequitur.


If you have a percentage of people who are struggling with their finances and are offered more credit, acting *shocked* that they use it and get into more financial bother is hilarious.


"Personal responsibility" pretty much translates to "Screw you, I got mine".


People already are responsible for their finances, what they do affects them after all, that doesn't really make any odds either way. What people do not have is either the mentality, skill capabilities, or fiscal ability to manage their finances. All 3 scenarios require different solutions, and none of them involve throwing the people more credit, as CC companies are still doing.


There are remarkably few upsides to unsolicited credit limit increases. Those who need them should ask, and of those, some should not be allowed. Those who do not need them really wont see any bother either way, and those who should be offered different solutions should be offered them.

chattychappy

StopIt wrote: »

There are remarkably few upsides to unsolicited credit limit increases.

I disagree - from my point of view there are only upsides. I don't have to use the increase. But if I want to, it's there. Often a request for an increase results in a search, automatic increases don't. Please don't take away my right to contract on terms that allow automatic increases unless I opt out.

StopIt wrote: »

Those who need them should ask, and of those, some should not be allowed. Those who do not need them really wont see any bother either way, and those who should be offered different solutions should be offered them.

You could extend that kind of argument to all sorts of products and services, where "someone" decides that there is no real benefit in something being promoted in a certain way, so disallowing it.

StopIt

chattychappy wrote: »

I disagree - from my point of view there are only upsides. I don't have to use the increase. But if I want to, it's there. Often a request for an increase results in a search, automatic increases don't. Please don't take away my right to contract on terms that allow automatic increases unless I opt out.


You could extend that kind of argument to all sorts of products and services, where "someone" decides that there is no real benefit in something being promoted in a certain way, so disallowing it.

That has an easy solution.


Any lender can have a soft limit that if requested, does not result in a credit search.


So if you open a card with a £2,000 limit and a year later the lender sees you as good for £5,000, you can ask for that limit if you need to, with no credit search. If you don't need it, you have no need to ask.


Again, you lose nothing by not having an automatic credit limit increase if you do not need it, other than a perceived boost to your financial ego.

chattychappy

StopIt wrote: »

Again, you lose nothing by not having an automatic credit limit increase if you do not need it, other than a perceived boost to your financial ego.

We lose the freedom for the parties to contract on the terms they desire - ie that they will review my limit from time-to-time and increase (or reduce) my limit as they wish. I believe they should be free to promote credit to me by increasing the limit on my account.

Nothing to do with "boosting my ego", thank you!