BuynFly (Morgan Stanley) dropped credit limit to nil...what now?

Strapped

Hi all. My hubby has been stoozing a sum on the Morgan Stanley BuynFly card. Today he got a letter (from "Goldfish" as they now call themselves) saying "after careful consideration, we have with immediate effect reduced your credit limit from £0.00 to £6,800".

Firstly, we assume that this is a typo, and they mean from £6,800 (his current CL) to £0.00.

Secondly, the letter is dated 10 Nov, which is his normal statement date, although the statement hasn't come yet. He was due to pay back in full in Dec anyway, so if this has to come forward then it's not a disaster but still a bit of a slap.

The big worry is, obviously he has a balance on the card at the moment, yet they say that they have reduced his CL "with immediate effect". How does this work? Surely they can't drop his CL and slap him with a charge for exceeding his limit? (Please someone tell me not!) I guess we will see what arrives on the statement, but it's a bit of a worry and hopefully not the start of a trend by "responsible lenders"...

Abetorius

Strapped wrote: »

Today he got a letter (from "Goldfish" as they now call themselves) saying "after careful consideration, we have with immediate effect reduced your credit limit from £0.00 to £6,800".

I also received a letter today cutting my credit limit in half (with my Platinum card). I got right on the phone to find out what they were playing at and the very apologetic man in the call centre said it was a computer error that issued the letter (seems it also did in my credit limit as I double checked my online statement first) and that they would reverse it and put it back to my original limit. I'll give them a couple of days and if it's not showing on my online statement as the right amount I'll be back on the phone again.

So my advice is, give them a call and ask what they are playing at and what they based this decision on.

Abetorius

Abetorius wrote: »

I'll give them a couple of days and if it's not showing on my online statement as the right amount I'll be back on the phone again.

Have checked again online and my credit limit is back to it's original level.

martwise

Hi Strapped,

I have the same letter dated 10th Nov cut to £0.00 to £7,500 and my satement is already online with my credit limit down to my stoozed amount but no mention of interest. Have you rang them yet?

noh

I too got a similar letter stating my credit limit has been cut from £0 to £5800. Checked online and my credit limit has been dropped to £50 above the current outstanding (stoozed) amount. I will not worry about this as the balance will be paid back when the 0% period finishes in January.

Nigel

a&akay

Ditto. An interesting conversation with a poor Scottish lad who'd obviously had a bad day and I paraphrase. 'You've reduced my credit limit to the limit I already have'. 'This is a mistake on our part'. 'OK please reissue the letter with what you actually meant to say'. 'Will do but this doesn't affect your current 0% deal', 'OK but it would have been nice if your letter had said that. I'm sure you're going to have a few more phone calls'.

MABLE

There has to be a very good reason why the credit limits have dropped. I have had mine increased. I think we are only getting part of the story and if some of you were list all your credit cards and limits then we would be able to offer constructive comments.

Credit cards companys wish to make money and will willingly offer their cards to credit worthy applicants who are not financially stretched.

a&akay

MABLE wrote: »

There has to be a very good reason why the credit limits have dropped. I have had mine increased. I think we are only getting part of the story and if some of you were list all your credit cards and limits then we would be able to offer constructive comments.

Credit cards companys wish to make money and will willingly offer their cards to credit worthy applicants who are not financially stretched.

Totally agree and unfortunately this thread has mixed the normal CC thread with the stoozers'. The stoozers on 0% do not wish to hear the incorrect 'we have with immediate effect reduced you Credit Limit from £0.00 to £xxxx' (the original limit we had) but we know what they mean. Far better to say 'We want to make as much money as we can from our CC holders and, recognising that you only pay off the minimum you owe monthly and then cancel the card before we earn any interest, we have reduced your CC limit to zero from x date'. I needed to know what 'x' was in their letter (and pigs may fly). They have now belatedly confirmed that the original deal now stands.

Strapped

a&akay wrote: »

Totally agree and unfortunately this thread has mixed the normal CC thread with the stoozers'. The stoozers on 0% do not wish to hear the incorrect 'we have with immediate effect reduced you Credit Limit from £0.00 to £xxxx' (the original limit we had) but we know what they mean. Far better to say 'We want to make as much money as we can from our CC holders and, recognising that you only pay off the minimum you owe monthly and then cancel the card before we earn any interest, we have reduced your CC limit to zero from x date'. I needed to know what 'x' was in their letter (and pigs may fly). They have now belatedly confirmed that the original deal now stands.

Couldn't agree more. Hubby couldn't get through today - well, he wouldn't wait long enough, let's put it that way - but from this board and the stoozing forum (where for some reason my registration won't seem to "stick") it would appear that there is a rash of people that this has happened to. Ho hum, will wait and see how it pans out.

Strapped

Update: well, statement arrived today and the CL has been reduced from £6,800 to £6,000, so end of panic. Still, it might be a sign of things to come (hope not, let the good times keep rolling!)

Strapped

Further update: received a grovelling letter of apology today saying that it had all been a system error, the previous CL was reinstated and confirming that no adverse info has been reported to the Credit Reference people