Barclays reducing credit card limits at this time !

cdavis26

Just received a letter from Barclays regarding reducing my credit card limit from £1800 to £650 , it’s obviously a standard letter as my partner also received hers in the same post ,I have very good credit with no defaults or missed payments /or  direct debits, my balance is around £ £550 this month .In light of the corona virus emergency where many people have been made aware that their incomes have been curtailed or drastically reduced this is yet more proof that Barclays have no intentions of assisting people in these crisis times, the old adage obviously applies “ they’ll give you an umbrella when the sun shines but take it away when it rains “ I’m disgusted by the behaviour of Banks like Barclays & I sincerely hope that this crisis abates and that people remember the heinous behaviour of Barclays & others!! C. Davis 

adamp87

At the end of the day to be blunt they don’t owe you anything. This could just be a routine thing, a lot of companies (as seen by posts in this group) have been cutting limits). If you aren’t using it they can give to someone who is.

Flip side of that is it would be irresponsible of them to keep providing credit in the current climate when potentially they may not get it paid back when it’s died down. That’s the risk as a lender they are probably assessing at the moment with many accounts. I wouldn’t take it personally. Look for a new provider if unhappy loyalty buys nothing these fays

eskbanker

I don't have any direct evidence of exactly how they're applying their current coronavirus guidance but they do say that they may increase credit limits for emergencies, so reducing limits for those who haven't been using them seems a sensible way to balance their books: "We won’t charge late payment or cash advance fees for the next 90 days, and you might be able to increase your credit limit to help you in an emergency."

D3xt3r5L4b

Better withdraw all your money and put it under the mattress then. 

Seriously its a standard procedure every lender goes through regardless of current affairs. 

2e0arr

I think its prudent of Barclays. If you and your partner cant survive on £650 each a month and  if you are both still working and getting paid as normal then wheres the problem ?

Can you afford to pay off what you owe to them ? and survive with £650 each per month ?

what is the point of Barclays allowing people who are not getting paid to rack up more debts ? Barclays shareholders including pension schemes would not be happy why should they let you  keep their umbrella for free.  At least they have 0ffered you a smaller umbrella.

born_again

cdavis26 said:

Just received a letter from Barclays regarding reducing my credit card limit from £1800 to £650 , it’s obviously a standard letter as my partner also received hers in the same post ,

Well why wait. Pay the bill and shut it down.  
That will tell them.

Malkytheheed

There is no way you run an impeccable account and have had your limit reduced to only £650! No way. You must be high risk. They are protecting you from yourself. 

2shoes

if all banks protected people from themselves there would be no postings on this forum

onthemend88

My marbles card has been reduced from £2100 limit to £1650. 

This is what they said in their email 

"We always want to make sure our customers’ cards work for them and their credit needs, undertaking regular reviews to make sure they do.

We’ve noticed you’re rarely using your full credit limit, which we think might mean you don’t need as much access to credit as you currently have on your marbles card."

There was an option to keep the credit limit, which I selected however, I have just logged on to my account and they have reduced the limit anyway. Don't suppose I am much use to them because I clear my balances in full every month. 

SlovakianGuy

2e0arr said:

I think its prudent of Barclays. If you and your partner cant survive on £650 each a month and  if you are both still working and getting paid as normal then wheres the problem ?

Can you afford to pay off what you owe to them ? and survive with £650 each per month ?

But there may be a different problem. Isn't this seen as a negative factor in the eyes of other lenders? When they do a credit check, they see credit limit reduced but they don't know the reason. They may assume the customer is high risk even if that's not the case at all. Am I wrong?

Edit:  it increases your credit utilisation which is not a good thing either.

SlovakianGuy

Btw, Nationwide offered me credit limit increase twice since account opening (summer 2018) which I both accepted. The first one, from 1700 to 2200, the second one from 2200 to 2700.  I only spend between 150 and 350 on this card each month and pay off the balance in full. I'm curious whether they'll offer me another credit limit increase or not.