Post Office Credit Card – Reduced Credit Limit Trap

geofh

I have had a Post Office Credit Card for almost 40(!) years – OK it was a CSMA credit card back then, but it is the same account, just transferred from one company to the next. Over that time, I have always paid the amount on the card in full every month via Direct Debit. I have never previously had any issues with this credit card.

Then about 2 months ago, POCC wrote to say they were halving the credit limit on the card - no reason given. The new credit limit is still rather more than I would expect to put on the card… except, when hiring a car in the Canaries, Europcar put a very large ‘reserve’ against this card.

On returning to the UK, I found a letter from Post Office Credit Card Services saying they had charged me £12 for exceeding the credit limit that they had just reduced (9 days earlier). On complaining to POCC, they said that they could not restore the credit limit for at least 12 months. The ill-trained customer service rep was clearly of the view that I was a bad credit risk, even though I had already paid the previous monthly bill in full!

Fortunately, I have several previously un-used credit cards with much higher credit limits, so I will leave the Post Office card dormant for a while before closing the account.

However, this should be a cautionary tale for other existing or potential POCC customers.


Geof.

[Deleted User]

I think a lot of CC companies have been reviewing peoples CC limits recently as the B of E puts pressure on them to reduce exposure, I had one of mine reduced by 3k in the summer.

Nebulous2

It happens. I had my first ever reduction from TSB almost a year ago. Just six months after they put it up. It was probably sensible, as I had just taken on a lot of 0% debt. Nobody else did it however.

molerat

Did your actual balance ever go over the credit limit ? If not then raise a formal complaint. Just because the money was reserved and put you in a negative available balance does not make you over limit.

chattychappy

molerat wrote: »

Did your actual balance ever go over the credit limit ? If not then raise a formal complaint. Just because the money was reserved and put you in a negative available balance does not make you over limit.

Yes, absolutely!

jamesperrett

Bank of Ireland, who run the card for the Post Office, seem to be cracking down all round - reducing limits and cancelling cards that haven't been used. I wonder if they've over stretched themselves?

Ebe_Scrooge

jamesperrett wrote: »

Bank of Ireland, who run the card for the Post Office, seem to be cracking down all round - reducing limits and cancelling cards that haven't been used. I wonder if they've over stretched themselves?

Bank of Ireland, who deal with most of the Post Office finance stuff, are the biggest pile of bovine excrement I've ever had the misfortune of dealing with. Avoid them like the plague ! I really do wonder how they got a licence to trade in the first place. I had a service from them once, and have studiously avoided going anywhere near them ever again.