Halifax limit reduced

SuperAllyB

Had the same text from Halifax regarding an old balance transfer card recently and got the same follow up letter yesterday.

starM

Got the letter today. I have rang them but decision is final. I have asked them to close the account immediately.

They said reduced £75 credit limit on my credit report is a good thing because overall credit limit has been decreased. I did say that it wouldn't look good to other lenders when applying for credit.

Anyway shouldn't increase the limit and then close the account so it has to be closed with the current limit.

SnowTiger

starM wrote: »

Yes basically it means we dont want you. Wonder why they didn't just close the account. I will call them later

https://www.halifax.co.uk/creditcards/help-guidance/terms-and-conditions/clarity-card/:

B9. Ending this agreement

We may end this agreement immediately if:

• there is illegal or fraudulent activity on or connected to the account;
• you are or may be behaving improperly – for example, in a threatening or abusive way;
• by continuing the agreement any company in the Lloyds Banking Group may be exposed to action from any government, regulator or other authority or may break a regulatory requirement; or
• you have seriously or repeatedly broken this agreement in any other way.

In any other case, we will give you two months' notice in writing. You can give us notice to end the agreement at any time.

And:

B1. Your credit limit

We can change your credit limit at any time.

T&Cs about these things are probably similar for most credit cards.

Basically, they have to give you two months' notice if they wish to close your account for a reason that isn't mentioned in the T&Cs.

They can reduce your credit limit whenever they want to.

I suspect their concern is that some customers might go on a spending spree after receiving a letter saying their account will be closed in two months' time.

chattychappy

Just received similar letters from Halifax - reduce to £75 then close.

The account was opened fraudulently anyway (and never used), so no bad thing.

Lorian

In the last few days I've had Barclaycard and American express reduce credit limit and set cards to pending closure. I've not used either for over 10 years.

jasdev

Haha good to be aware of this happening, I wonder if it will happen to me too soon!
I'd laugh in their face and close the account immediately, since a £75 limit would make the card absolutely worthless for my planned overseas spending.
Good luck, OP.

chanz4

Did the same to us, but us because not used for a year

A4445

I think it’s something It’s something to do with brexit. I work in finance and I’ve been told that lending has dried up on the whole sale market. Nobody wants to lend to each other. Perhaps they are cutting limits due to cash flow issues.

SuperAllyB

A4445 wrote: »

I think it’s something It’s something to do with brexit. I work in finance and I’ve been told that lending has dried up on the whole sale market. Nobody wants to lend to each other. Perhaps they are cutting limits due to cash flow issues.

Might well be something in that. I have had a similar letter from Tesco about another old balance transfer card that's been clear for a while. Seems more.rhan a coincidence. Other than an unsuccessful mortgage application, there haven't been any material changes to.my circumstances.

starM

MBNA recently increased my credit limit without asking. This card also runs by Lloyds. Someone on MSE said previously that Lloyds review department can see all brand accounts on one screen. Wonder they are increasing MBNA and decreasing Halifax to keep inline with overall credit.